By now your Annual Member Statement for the year ended 31 March 2024 should be available in your KiwiSaver log in. It is worthwhile taking the time to review your contributions, your retirement goal & the performance of your fund.
At Threefold, we often recommend KiwiSaver fund managers Generate and Milford, as we believe they are two of the best providers in the market.
This month, we delve into the performance of these funds (noting that past performance does not necessarily indicate a financial product’s future performance), highlighting their returns along with reiterating why it is important to actively manage your KiwiSaver account. Understanding these metrics will provide you with valuable insights into your investments and reinforce the advantages of actively managing your KiwiSaver account.
Generate KiwiSaver Performance
According to the latest KiwiSaver Survey by Morningstar (June 2024), Generate KiwiSaver funds have delivered strong returns across various investment profiles over the past 12-months. Noting that it is always better to take a longer-term view of investment returns, it is pleasing to also note that Generate has achieved some of the strongest returns in the market over the past 10-years, including 5.7% for its Moderate Fund, 9.3% for its Growth Fund and 10.2% for its Aggressive Funds.
One of the key strengths of Generate KiwiSaver is its diversified investment strategy, which balances growth and stability. This approach has allowed Generate to consistently provide solid returns while mitigating risks, making it an attractive option for investors seeking steady growth. Additionally, Generate’s commitment to responsible investment practices ensures that your funds are not only growing but also contributing to a sustainable future.
Milford KiwiSaver Performance
Milford KiwiSaver has also shown exceptional performance, reinforcing its reputation as one of New Zealand’s top KiwiSaver providers. As highlighted in the KiwiSaver Survey by Morningstar (June 2024), Milford’s Conservative, Balanced and Growth Funds outperformed all of its competitors over the last 10-years, with impressive returns of 5.5%, 8.7% and 10.5% respectively. This outstanding performance is a testament to Milford’s active management strategy, which focuses on selecting high-quality investments and actively managing risk.
With all of Milford’s funds providing strong returns over both the short and longer terms, it showcases the providers ability to cater to different risk appetites while ensuring growth and stability. This flexibility makes Milford an excellent choice for KiwiSaver members at various stages of their investment journey.
Maximising Your KiwiSaver Returns
While it is important to make sure your fund manager is doing their job, the onus is also on your to actively manage your account and make sure that you are in a fund that suits your personal age, life stage and risk tolerance levels. To ensure you are making the most of your KiwiSaver, consider the following tips:
Review Your Fund Choice: Each year when your annual statement comes out, it’s a great idea to review your chosen fund to ensure it aligns with your risk tolerance and financial goals. If your circumstances change, consider switching to a fund that better suits your needs.
Increase Contributions: If possible, increase your contributions beyond the minimum required. Even small increases can have a substantial impact on your long-term savings due to the power of compounding returns.
Seek Professional Advice: Consulting with a KiwiSaver adviser can provide personalised insights and recommendations tailored to your financial situation. At Threefold, our advisers are committed to helping you navigate the complexities of KiwiSaver, ensuring you make informed decisions that maximise your returns.
If you are interested in understanding more about your investor profile and whether your KiwiSaver fund is optimised for your personal circumstances, our team is here to help. To find our more about our services, click here. Or, click here to book a complimentary review of your KiwiSaver investment strategy.
The content of this article should not be taken as financial advice, or a recommendation of any financial product. Threefold is not liable or responsible for any information, omissions, or errors present. We recommend seeking advice from a qualified financial adviser before taking any action.