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KiwiSaver growth funds perform in September quarter

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Fuseworks Media
Fuseworks Media

Wellington, Nov 8 NZPA - Bouncing sharemarkets helped KiwiSaver funds to produce positive returns in the September quarter, according to the latest Mercer KiwiSaver survey.

KiwiSaver growth funds -- which have the greatest allocation to shares -- had a median return of 5.8 percent in the quarter ended September 30, which was a turnaround from the previous quarter's negative median return of 6.1 percent.

The best performing fund for the September quarter was Fisher Funds Growth Fund, which returned 10.5 percent for the September quarter, and 13.2 percent in the 12 months to September 30.

Default schemes remain the strongest performers over a three year period, recording a median return of 4.6 percent per annum compared to minus 3.1 percent for growth funds.

Funds with the highest allocation to bonds and cash had been the best performers since the inception of KiwiSaver three years ago.

"Global sharemarkets have bounced back over the past quarter, as fears of the European debt crisis reduced. All asset classes produced positive returns, including property and commodities, which is great for KiwiSaver funds," said Martin Lewington, head of Mercer New Zealand.

"While the probability of a double dip recession is lower, strong headwind pressures remain. Weak consumer spending and high unemployment in the US combine to produce an uncertain outlook for developed economies," he said.

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