Simplicitys Passive Strategy Yields Strong Returns for KiwiSaver Investors

Highlights:

• Top Quarterly Performance: Simplicity's KiwiSaver growth fund led 15 growth funds with a 1.6% return in the June quarter, and its balanced fund achieved the highest return among 17 balanced funds at 1.3%.
• Long-Term Success: Despite Simplicity's quarterly success, Milford Asset Management's active growth fund showed superior long-term returns, leading three, five, and ten-year periods with annualized returns of up to 10.5%.
• Conservative Fund Leadership: Simplicity's default fund and BNZ's first-home buyer KiwiSaver fund excelled in the conservative category, with Simplicity's default fund ranking first in the quarter with a 1.2% return and strong annual performance

Simplicity's KiwiSaver investors benefited from a passive investment approach, particularly in their growth and balanced funds during the June quarter. Simplicity, an entity managing KiwiSaver funds, has been recognized for its performance since becoming one of the six default fund managers two years ago.

Quarterly Performance

In the June quarter, Simplicity's KiwiSaver growth fund led the pack among 15 growth funds with a return of 1.6%. Over one and three-year periods, it secured second place with annual returns of 13.3% and 4.6%, respectively, according to the latest MJW survey. Meanwhile, Simplicity's balanced fund also shone, delivering a 1.3% return, the highest among 17 balanced funds.

Long-Term Comparison

Despite Simplicity's strong quarterly performance, Milford Asset Management's active approach has shown superior long-term returns. Milford's KiwiSaver active growth fund boasted the best performance over three, five, and ten-year periods, with annualized returns of 5.7%, 9.3%, and 10.5%, respectively. However, it lagged in the June quarter, ranking 13th with a negative 0.7% return.

Balanced Fund Insights

Simplicity's balanced fund ranked second over one year with a 10.7% return but slipped to fourth place over three years and fifth over five years with annualized returns of 2.8% and 5.6%, respectively. Milford's balanced fund, on the other hand, led over three, five, and ten-year periods, but only managed 11th place in the June quarter with a 0.3% return.

Conservative Fund Performance

BNZ's first-home buyer KiwiSaver fund topped the conservative fund category in the June quarter with a 1.1% return. Simplicity's default fund also performed well, ranking first in the quarter with a 1.2% return and maintaining strong performance over one and two-year periods. Conversely, ANZ's KiwiSaver balanced growth fund and its conservative fund underperformed, ranking last in several categories.

Simplicity's strategic focus on passive management has demonstrated significant benefits for its investors, reinforcing its position as a robust player in the KiwiSaver market.

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Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.

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