Share performance boosts KiwiSaver returns over March quarter

"The strong returns from sharemarkets resulted in KiwiSaver funds with higher exposures to growth assets (shares and property) outperforming those with more invested in income assets (cash and fixed income) over the March quarter," said Morningstar co-head of research Chris Douglas.

Morningstar also said the KiwiSaver assets on its database had grown from $954.10 million at June 30, 2008 to $8.07 billion at March 31, 2011, "a phenomenal growth rate for the New Zealand funds management industry."

Morningstar said the best performing multi-sector funds in the March quarter were ASB KiwiSaver, Fidelity KiwiSaver, Grosvenor KiwiSaver and the Westpac KiwiSaver.

Continuing the trend from 2010, single-sector equities and multi-sector growth and aggressive options were the best performers over the first three months of 2011.