We will be going over Milford’s KiwiSaver Performance for the past quarter and recent news. This includes how Milford structures their funds, the returns, some investments that are in the funds, and fees that may apply if you are interested.
Coming out of August, Milford is continuing to see good returns across their funds and is forecast to show good performance into the next quarter.
What has Affected the Milford KiwiSaver Funds?
Milford has pinpointed some key positives and negatives for KiwiSaver Investors to keep an eye on going forward. All in all, the funds are looking favourable for investors with a robust economy. Investors may continue to see smaller returns from the invested bonds.
Positives:
- The global release of vaccines is still having a positive impact on people being able to get back to work.
- Central Banks in the US and Europe clarifying that the current inflationary pressures will not last long (easing on inflation).
Negatives/Risks
- Spread of the Delta variant and the effectiveness of vaccines.
- Inflationary surprise that will force central banks to increase interest rates.
Performance of Milford's KiwiSaver Schemes as of August 31st
|
1 Year |
5 Years (pa.a) |
Since Launch (p.a.) |
|
|
KiwiSaver Aggressive Fund |
24.44% |
- |
20.73% |
|
KiwiSaver Active Growth Fund |
23.46% |
12.58% |
13.19% |
|
KiwiSaver Balanced Fund |
17.30% |
10.32% |
10.63% |
|
KiwiSaver Moderate Fund |
10.47% |
- |
14.71% |
|
KiwiSaver Conservative Fund |
5.40% |
5.76% |
8.34% |
|
KiwiSaver Cash Fund |
0.41% |
- |
0.39% |
You can see how they compare with other providers or view a list of the best KiwiSaver funds here
Aggressive Fund
The KiwiSaver Aggressive Fund saw returns of 2.6% in August, with 1-year returns of 24.44%. As previously mentioned, this was supported by central banks reporting eased inflation. The aggressive fund aims to have a high proportion of assets in growth assets over income (Shown Below). It also has an estimated base fee of 1.15%.
Investments Include:
|
|
% of fund net assets |
Type |
Country |
|
NZD Cash Current Account (NAB Bank) |
8.31% |
Cash and cash equivalents |
New Zealand |
|
Microsoft Corporation |
2.68% |
Australasian equities |
New Zealand |
|
Alphabet Inc - Class C |
2.67% |
Australasian equities |
United Kingdom |
|
Thermo Fisher Scientific Inc |
2.07% |
Australasian equities |
New Zealand |
|
Mastercard Inc - Class A |
1.85% |
Australasian equities |
New Zealand |
Actual Investment Mix:
Active Growth Fund
Milford’s KiwiSaver Active Growth Fund saw good returns of 2.5% in August, with a 1-year return of 23.46%. Fixed-income returns were reported to be flat compared to other investments. These are good compared to the Aggressive fund that returned 2.6%, as the Active Growth Fund has a larger proportion of income assets (Shown Below). The base fund fee for Active Growth is estimated to be 1.05%.
Investments Include:
|
|
% of fund net assets |
Type |
Country |
|
NZD Cash Current Account (NAB Bank) |
5.72% |
Cash and cash equivalents |
New Zealand |
|
Contact Energy Ltd |
3.08% |
Australasian equities |
New Zealand |
|
Virgin Money UK PLC |
2.97% |
Australasian equities |
United Kingdom |
|
Fisher & Paykel Healthcare Ltd |
2.89% |
Australasian equities |
New Zealand |
|
Spark New Zealand Ltd |
2.76% |
Australasian equities |
New Zealand |
Actual Investment Mix:
Balanced Fund
Milford’s KiwiSaver Balanced Fund saw returns of 2.2% in August, with 1-year returns of 17.30%. Again, this can be attributed to the strong gains from shares and recovery from Covid-19. The Fund has seen less of a return than the previous two, with slightly more assets being distributed towards Income Assets (Shown Below). The base fund fee for Balanced is also estimated to be 1.05%.
Investments Include:
|
|
% of fund net assets |
Type |
Country |
|
NZD Cash Current Account (NAB Bank) |
8.13% |
Cash and cash equivalents |
New Zealand |
|
Contact Energy Ltd |
2.09% |
Australasian equities |
New Zealand |
|
Fisher & Paykel Healthcare Ltd |
1.61% |
Australasian equities |
New Zealand |
|
Spark New Zealand Ltd |
1.47% |
Australasian equities |
New Zealand |
|
Microsoft Corporation |
1.23% |
International equities |
United States |
Actual Investment Mix:
Moderate Fund
Milford’s KiwiSaver Moderate Fund has seen returns of 1.3% in August, with a 1-year return of 10.5%. With this Fund going forwards, we see a majority of assets distributed towards Income Assets, meaning that it is less affected by market shares that have a good performance. The base fund fee is about 0.95%.
Investments Include:
|
|
% of fund net assets |
Type |
Country |
|
NZD Cash Current Account (NAB Bank) |
14.51% |
Cash and cash equivalents |
New Zealand |
|
Contact Energy Ltd |
1.29% |
Australasian equities |
New Zealand |
|
NZ Local Government Funding 1.5% 15/04/2026 |
1.01% |
New Zealand fixed interest |
New Zealand |
|
Spark New Zealand Ltd |
0.93% |
Australasian equities |
New Zealand |
|
Scentre Group 5.125% 24/09/2080 |
0.85% |
International fixed interest |
Australia |
Actual Investment Mix:
Conservative Fund
Milford’s KiwiSaver Conservative Fund saw returns of 0.72%, with a 1-year return of 5.40%. This shows good returns considering how low risk the Fund is. These can be attributed to the positive market pressures and is forecast to bring on similar returns. This also comes with a base annual fee of 0.95%.
Investments Include:
|
|
% of fund net assets |
Type |
Country |
|
NZD Cash Current Account (NAB Bank) |
7.02% |
Cash and cash equivalents |
New Zealand |
|
NZ Local Government Funding 1.5% 15/04/2026 |
1.93% |
New Zealand fixed interest |
New Zealand |
|
Scentre Group 5.125% 24/09/2080 |
1.03% |
International fixed interest |
Australia |
|
Housing New Zealand 3.36% 12/06/2025 |
0.92% |
New Zealand fixed interest |
New Zealand |
|
NZ Local Government Funding 1.5% 20/04/2029 |
0.90% |
New Zealand fixed interest |
New Zealand |
Actual Investment Mix:
Cash Fund
Milford’s KiwiSaver Cash Fund saw returns of 0.05%, with a 1-year return of 0.41%. This is because of the 100% distribution into income assets, this means that it has not been affected by the strong market pressures. This comes with a base annual fee of 0.20%.
Investments Include:
|
|
% of fund net assets |
Type |
Country |
|
Westpac 32 Day Constant Maturity Deposit 2020 |
19.93% |
New Zealand fixed interest |
New Zealand |
|
NZD Cash Current Account (NAB Bank) |
13.81% |
Cash and cash equivalents |
New Zealand |
|
Port of Tauranga Ltd Certificate of Deposit 02/08/2021 |
9.96% |
New Zealand fixed interest |
New Zealand |
|
NZD Cash Call Account (Bank Of China) |
9.50% |
Cash and cash equivalents |
New Zealand |
|
Meridian Energy Certificate of Deposit 14/07/2021 |
6.97% |
New Zealand fixed interest |
New Zealand |
Actual Investment Mix:
