Using the most recent returns and fund update reports from June 2022, we will examine Milford's recent KiwiSaver Performance.
Milford Asset Management is a New Zealand-owned and operated Investment company founded in 2003. Milford offers both tailored investment advice in the form of managed funds and a KiwiSaver Scheme that, according to their latest 2022 annual reports, has 69,870 members and $4,821,979,631 in total funds within said KiwiSaver Scheme (March 2022). Milford has been a high performer in terms of KiwiSaver returns for many years.
This quarter has proved high market volatility once again as we still realise the impact of Covid-19 on the stock market, which can be seen in the negative returns of funds across many KiwiSaver providers. Increased Inflation has also been a driving factor in the decline of the market, with the Reserve Bank of New Zealand raising the Official Cash Rate to 3% to try and mitigate this inflation spike and get it back under control in order to attempt to stabilise the increased cost of living New Zealand is currently recognising. These societal and economic pressures have made it difficult for markets to perform, which can be seen in the returns for this quarter.
Table of Contents
News about Milford
Performance of Milford KiwiSaver Funds
Milford Cash Fund
Milford Conservative Fund
Milford Moderate Fund
Milford Balanced Fund
Milford Active Growth Fund
Milford Aggressive Fund
News about Milford
In recent news, Milford has been praised for how they have handled the drop seen in KiwiSaver funds in recent times and have been able to mitigate this impact very well in comparison to the market.
According to Milford Asset Management’s annual review of their KiwiSaver Scheme, it can be seen that for the year ended 31 March 2022, they have increased their member count by 46.08%, which equates to 47,830 at the start of the financial year to 69,870 members as at 31 March 2022. This massive increase in member size may be due to how well they have managed their KiwiSaver Scheme in a difficult market. This increase in member size has equated to a dollar value increase in investment size within their KiwiSaver Funds of $1,512,314,740 within a year.
Performance of Milford KiwiSaver Funds
|
1 Month |
3 Month |
1 Year |
3 Year |
5 Year |
Since Inception |
|
|
Cash |
0.25% |
0.62% |
1.33% |
- |
- |
0.78% |
|
Conservative |
-0.46% |
-0.01% |
-5.49% |
1.25% |
3.43% |
6.86% |
|
Moderate |
-0.08% |
-0.29% |
-4.67% |
- |
- |
6.30% |
|
Balanced |
-0.05% |
-0.24% |
-3.96% |
6.29% |
7.62% |
9.38% |
|
Active Growth |
-0.39% |
-1.55% |
-5.92% |
7.81% |
9.53% |
11.80% |
|
Aggressive |
-1.54% |
-0.95% |
-10.11% |
9.48% |
- |
9.73% |
Sourced from Milford fund performance report
* These returns are to 31 August 2022 and are before tax and after fund management fees. Past performance is not necessarily an indicator of future performance, and return periods may differ.
Note: The following information is sourced from Milford Quarterly Fund updates published on 31 August 2022.
Milford Cash Fund
The objective of this Cash Fund is to target a return above the New Zealand Official Cash Rate after the base fund fee but before tax. It primarily invests in New Zealand cash, short-dated debt securities and term deposits. Milford KiwiSaver Cash Fund has a 3-month return of 0.62%, and a 1-year return of 1.33%, which is higher than the return since inception of 0.78%.
*The following is Sourced from Milford Cash Fund Update
Returns
Fees
The total annual fees for investors in the Milford Cash Fund are 0.20% per year.
Investment mix
The investment mix is 100% cash and cash equivalents due to being a Cash Fund.
Top ten investments
This table shows Milford’s top 10 investments in the Cash KiwiSaver Fund, which comprise 56.74% of the fund.
Milford Conservative Fund
The Fund’s objective is to provide moderate returns and protect capital after the base fund fee but before tax over the minimum recommended investment timeframe of three years. It is a diversified fund that primarily invests in fixed-interest securities, with a moderate allocation to equities. Milford KiwiSaver Conservative Fund has a 3-month return of -0.01% and a 1-year return of -5.49%, compared to the return since inception of 6.86%.
*The following is Sourced from Milford Conservative Fund Update
Returns
Fees
The total annual fees for investors in the Milford Conservative Fund are 0.95% per year.
Investment mix
The investment mix shows the type of assets that the fund invests in.
Top ten investments
This table shows Milford’s top 10 investments in the Conservative KiwiSaver Fund, which comprise 18.47% of the fund.
Milford Moderate Fund
The Fund’s objective is to provide moderate returns and capital growth after the base fund fee but before tax and before the performance fee, over the minimum recommended investment timeframe of four years. It is a diversified fund that primarily invests in fixed-interest securities with a significant allocation to equities. The Milford Moderate fund has a 3-month return of -0.29% and a 1-year return of -4.67%, compared to the return since inception of 6.30%.
*The following is Sourced from Milford Moderate Fund Update
Returns
Fees
The total annual fees for investors in the Milford Moderate Fund are 1.00% per year.
Investment mix
The investment mix shows the type of assets that the fund invests in.
Top ten investments
This table shows Milford’s top 10 investments in the Moderate KiwiSaver Fund, which comprise 17.94% of the fund.
Milford Balanced Fund
The Fund’s objective is to provide capital growth after the base fund fee but before tax and before the performance fee, over the minimum recommended investment timeframe of five years. It is a diversified fund that primarily invests in equities, with a significant allocation to fixed-interest securities. Milford KiwiSaver Balanced Fund has a 3-month return of -0.24%, and a 1-year return of -3.96%, compared to the return since inception of 9.38%.
*The following is Sourced from Milford Balanced Fund Update
Returns
Fees
The total annual fees for investors in the Milford Balanced Fund are 1.09% per year.
Investment mix
The investment mix shows the type of assets that the fund invests in.
Top ten investments
This table shows Milford’s top 10 investments in the Balanced KiwiSaver Fund, which comprise 16.52% of the fund.
Milford Active Growth Fund
The Fund’s objective is to provide annual returns of 10% after the base fund fee but before tax and before the performance fee, over the minimum recommended investment timeframe of seven years. It is a diversified fund that primarily invests in equities, with a moderate allocation to fixed-interest securities. Milford KiwiSaver Active Growth Fund has a 3-month return of -1.55%, and a 1-year return of -5.92%, compared to the return since inception of 11.80%.
*The following is Sourced from Milford Growth Fund Update
Returns
Fees
The total annual fees for investors in the Milford Growth Fund are 1.05% per year.
Investment mix
The investment mix shows the type of assets that the fund invests in.
Top ten investments
This table shows Milford’s top 10 investments in the Active Growth KiwiSaver Fund, which comprise 24.29% of the fund.
Milford Aggressive Fund
The Fund’s objective is to maximise capital growth after the base fund fee but before tax and before the performance fee, over the minimum recommended investment timeframe of ten years. It primarily invests in international equities, with a moderate allocation to Australasian equities. Milford KiwiSaver Balanced Fund has a 3-month return of -0.95%, and a 1-year return of -10.11%, compared to the return since inception of 9.73%.
*The following is Sourced from Milford Aggressive Fund Update
Returns
Fees
The total annual fees for investors in the Milford Aggressive Fund are 1.21% per year.
Investment mix
The investment mix shows the type of assets that the fund invests in.
Top ten investments
This table shows Milford’s top 10 investments in the Aggressive KiwiSaver Fund, which comprise 32.65% of the fund.
Data for Milford KiwiSaver funds have been sourced from Milford KiwiSaver Funds. Past performance is not necessarily an indicator of future performance, and return periods may differ.
To see if Milford has the appropriate fund that aligns with your values, retirement goals and situation, complete National Capital’s KiwiSaver Healthcheck.
