KiwiSaver well-positioned for 2016
On a three-year annualised basis, aggressive and growth funds have been the clear standouts, returning 11.9% and 11.5% respectively according to research house Morningstar. That is well ahead of balanced funds’ average 9.7%, moderate funds’ 7.3% and default funds’ 6.2%.
Morningstar analyst Kathryn Young said there was unlikely to be any major upset for KiwiSaver investors through 2016.
She said “muted” was likely the best way to describe this year’s predicted performance. New Zealand equities’ long run of double-digit returns was unlikely to continue, she said.
“There have been really strong returns on a lot of asset classes over the past five years and valuations are at a place where they are vulnerable to shocks, as we’ve seen in global equities.”
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