Independent research by Interest.co.nz has found the Mercer KiwiSaver scheme default fund has delivered the highest returns of any default fund since KiwiSaver launched.
Interest.co.nz made the announcement recently, reporting the Mercer Conservative default fund provided investors with the highest effective cumulative return of 4.9% since April 2008.
Mercer New Zealand’s head of investments, Philip Houghton-Brown, says that diversification is the key behind the default fund’s strong performance.
“An active management style combined with our global reach means our Mercer KiwiSaver scheme members can benefit from the greater number of investment strategies that underpin each of our funds.”
The Mercer Conservative default fund provides a lower-risk option with the majority of the fund invested mostly in cash and fixed interest, with 20% allocated to growth assets such as global and trans-Tasman shares, property and infrastructure.
Mercer KiwiSaver scheme members are automatically placed in the default fund unless they choose one or a mix of the other six investment fund options, which provide conservative to high-growth investment options ranging from 100% cash to 100% shares.
While the Mercer KiwiSaver scheme Conservative default fund provides a good option for those planning to withdraw their KiwiSaver savings to buy a first home or retire in the near future, it’s always important to check that your investment fund choice is right for you.
If you’re unsure about your investment fund choice, take our Quick Investment Quiz* to work out your risk appetite and see what fund may suit your investment style.
You can also call our Helpline team on 0508 637 237.
*Visit the important information section of the Quick Investment Quiz website for more information.