News Round Up: April 30

Monday, April 30th 2012, 7:39AM

KiwiSaver funds with higher exposures to shares and property were the best performers over the March 2012 quarter, according to the Morningstar KiwiSaver Performance Survey.

"Growth assets enjoyed a stellar start to 2012, and the KiwiSaver funds most invested in local and international shares and property consequently produced the strongest performances," said Morningstar co-head of fund research Chris Douglas.

However, Douglas warned it would be brave to suggest this trend will last the rest of the year.

"Many investors will however be able to benefit from this volatility, their regular KiwiSaver contributions enabling them to buy quality assets at temporarily lower prices, especially those with a long-term horizon for their retirement savings."

The Morningstar research also found that for the first time, growth and aggressive funds were the best performers over a three-year period and the Aon KiwiSaver Russell was consistently the best performer across the various multi-sector categories over the March quarter.

KiwiSaver assets on the Morningstar database grew from $954.1 million in June 30, 2008 to $11.26 billion at 31 March, 2012, and OnePath and ASB remain the dominant players with 45.80% of KiwiSaver cash between them.

NZSA welcomes Petricevic sentence

The New Zealand Shareholders Association (NZSA) has welcomed the six-and-a-half year jail term handed down to former Bridgecorp managing director Rod Petricevic.

Chairman John Hawkins said the Association was pleased the Court took a hard line as "there was clear knowledge and cynical disregard for the rights and obligations towards investors."

He said the offending in the Bridgecorp case was "in a different league" to other recent cases but expressed regret that despite the verdict, investors we unlikely to have their money returned.

The cash had been siphoned off into trusts where it was beyond the reach of both the law and creditors, something Hawkins said needed to be addressed.

He also revealed Petricevic was the winner of the NZSA's 2011 Golden Glob Award for appalling corporate governance - which was not made public to avoid interfering with the judicial process.

« [Weekly wrap] Passing judgment

Managers warn against more KiwiSaver regulation »

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