Bounceback good news for KiwiSavers

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Bouncing sharemarkets helped KiwiSaver funds 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 per cent in the quarter ended September 30, a turnaround from the previous quarter's 6.1 per cent negative median return.

The best performer for the September quarter was Fisher Funds Growth Fund, which returned 10.5 per cent for the quarter and 13.2 per cent in the past 12 months.

Default schemes remain the strongest performers over a three-year period, recording a median return of 4.6 per cent a year compared with minus 3.1 per cent 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.

However, he said, although the probability of a double-dip recession was lower, "strong headwind pressures remain".

- NZPA