POWERED BY MOMENTUM MEDIA
SuperRatings rates NZ savings system
The New Zealand voluntary long-term savings system KiwiSaver was found to be a very efficient retirement system, with an 80 per cent engagement level, a complete contrast to the Australian system.
This is the finding from SuperRatings, which released its formal 2015 ratings for the KiwiSaver after researching the market for more than two years.
SuperRatings looked at a variety of factors beyond investment performance and fees, and awarded eight schemes its highest Platinum rating.
SuperRatings found the Inland Revenue Department had a vital role in keeping the system cost-effective and efficient compared to other global retirement systems.
"In addition, the use of a single account for each individual adds further efficiencies to the system, mitigating the multiple account issues currently evident in Australia," SuperRatings CEO Adam Gee said.
Gee also said the option of first home withdrawals under the system has lured younger age groups to engage with it.
This is not the case in Australia, where balances are amassed only for retirement. Under the Australian system, almost 80 per cent of members are still within default arrangements
But Gee also noted the New Zealand system has more divergence in the investment structures unlike Australia, where investment approaches are more homogenous.
This could result in "material variances" in investment results for members based on how the asset classes perform.
"Unlike Australia, where the majority of conservative balances and growth investment options are reasonably similar allocations to asset classes, the KiwiSaver system shows large differences, which will make it challenging for members to easily compare options," Gee said.
Recommended for you
The Future Fund’s CIO Ben Samild has announced his resignation, with his deputy to assume the role of interim CIO.
The fund has unveiled reforms to streamline death benefit payments, cut processing times, and reduce complexity.
A ratings firm has placed more prominence on governance in its fund ratings, highlighting that it’s not just about how much money a fund makes today, but whether the people running it are trustworthy, disciplined, and able to deliver for members in the future.
AMP has reached an agreement in principle to settle a landmark class action over fees charged to members of its superannuation funds, with $120 million earmarked for affected members.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
76.97 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
76.46 3 y p.a(%)
3
UBS Solactive Global Pure Gold Miners UCITS ETF Dis USD
51.13 3 y p.a(%)
4
Global X GlobalX FANG+ ETF
45.15 3 y p.a(%)
5
Select Baker steel Gold Institutional
43.78 3 y p.a(%)
