Using the most recent returns from 30th September 2021, we will examine Simplicity’s recent KiwiSaver Performance. In addition, we’ll be reviewing the individual performances of Simplicity’s Conservative Fund, Balanced Fund, and Growth Fund by using the latest fund updates from 30th June 2021.
Simplicity is NZ’s nonprofit KiwiSaver plan, charging members the same annual fee of $20 with an additional $3 for every $1000 invested on every diversified fund. By choosing Simplicity, you’ll have low fees that could have a big impact on your long-term investments by giving you more money to invest.
During September, the share market and Simplicity KiwiSaver Funds had a drop in returns. This could be attributed to the fact that Auckland is still in lockdown, the market settling down after last year's significant returns or another external factor. However, investors in KiwiSaver shouldn’t worry as it's natural for the market to have ups and downs, and doesn't always indicate the long-term performance of these funds
|
1 month |
3 months |
1 year |
2 years (p.a) |
3 years (p.a) |
5 years (p.a) |
|
|
Simplicity Growth Fund |
-1.97% |
1.55% |
16.02% |
11.86% |
10.84% |
11.52% |
|
Simplicity Balanced Fund |
-1.70% |
1.00% |
10.16% |
8.83% |
8.88% |
8.79% |
|
Simplicity Conservative Fund |
-1.22% |
0.15% |
1.30% |
3.72% |
5.52% |
4.95% |
Simplicity’s Conservative Fund aims to provide investors with a stable return over a long period and therefore has limited exposure to growth assets, with most of its investments in income assets. As a result, the conservative funds’ return is likely to be lower over a long period of time compared to the more volatile Balanced or Growth Funds.
The benefit of this fund is that the value of its investments is unlikely to fluctuate as often as the Balanced or Growth Funds. The Conservative Fund has had the highest 1-month return of -1.22% due to the stable investments in income assets. The Conservative Fund also has a 1-year return of 1.3% compared to the 5-year returns of 4.95% which shows the fund is performing below what KiwiSaver investors want.
Returns
*Source Simplicity fund update
Fees
The total annual fees for investors in the Simplicity conservative fund are 0.27% per year, with an additional $20 charge.
*Source Simplicity fund update
Investment mix
This shows the type of assets that the fund invests into.
*Source Simplicity fund update
Top ten investments
This table shows Simplicity’s top 10 investments in the conservative KiwiSaver fund, which make up 74.54% of the fund.
*Source Simplicity fund update
Simplicity Balanced Fund
The Balanced Fund aims to provide investors with both returns and good stability by having a mix of growth and income assets. Consequently, the return from the Fund is likely to be lower over a long period than the Growth Fund and higher than the Conservative Fund. The Balanced Funds 1-month returns were -1.7%, which isn’t the best, but this could be due to the ongoing lockdown restrictions and economic conditions. The Balanced Fund has 1-year returns of 10.16%, which is above the 5-year returns of 8.79%. That displays an optimistic performance for KiwiSaver investors.
Returns
*Source Simplicity fund update
Fees
The total annual fees for investors in the Simplicity Balanced fund are 0.29% per year, with an additional $20 charge.
*Source Simplicity fund update
Investment mix
This shows the type of assets that the fund invests into.
*Source Simplicity fund update
Top ten investments
The following is Simplicity’s top 10 investments in the Balanced fund, which make up 78.16% of the fund.
*Source Simplicity fund update
Simplicity Growth Fund
The Growth fund aims to provide investors with high long-term returns, with the majority of its investments in growth assets. However, due to the value of the investments, it can be affected strongly by changes in the market. The Growth Fund saw a 1-month return of -1.97%, As mentioned above, this could be attributed to the current lockdown and economic state. The Growth fund’s 1-year returns are 16.02%, which is significantly larger than the 11.52% 5-year returns, showing excellent performance for KiwiSaver investors. Therefore, the fund could have a much better return next quarter with the possibility of the lockdown being lifted.
Returns
*Source Simplicity fund update
Fees
The total annual fees for investors in the Simplicity Growth fund are 0.3% per year, with an additional $20 charge.
*Source Simplicity fund update
Investment mix
This shows the type of assets that the fund invests into.
*Source Simplicity fund update
Top ten investments
The following is Simplicity’s top 10 investments in the Growth Fund which make up 80.50% of the fund.
*Source Simplicity fund update
Simplicity KiwiSaver funds have been sourced from Simplicity KiwiSaver Funds. Past performance is not necessarily an indicator of future performance, and return periods may differ.
To see if Simplicity has the appropriate fund that aligns with your values, retirement goals and situation, complete National Capital’s KiwiSaver HealthCheck.