Property and shares push KiwiSaver winners

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Some of the best performing KiwiSaver funds last year were also the worst performers in 2008, figures from Morningstar show.

Performance figures for the year to December 31 reveal funds with a bias towards property and shares produced the best results in 2010.

Morningstar co-head of fund research Chris Douglas said stronger sharemarkets had boosted funds that invested across the different asset classes.

"Investors whose KiwiSaver options had a bias to growth assets (shares and property) by and large produced the best results in both the final quarter of 2010 and the full year."

Fund managers Aon Russell and AMP Lifesteps had been consistent performers across several categories during the three months to December 31 but due to the highly volatile markets there weren't any clear performers over the last three years.

Douglas said the best peformers of 2010 were also frequently the worst performers in 2008.

The SIL KiwiSaver International property fund was the top fund last year returning 23.33 per cent - more than double its nearest competitor.

But it dropped 44.08 per cent in 2008.

The Fisher Funds Growth KiwiSaver was the second best with a 10.68 per cent return but that followed on from a 28.2 per cent fall in 2008.

Third best, Aon KiwiSaver Russell Lifepoints Growth, grew 10.44 per last year but fell 30.08 per cent in 2008.

Douglas said the last three years had taught investors the importance of understanding what they were invested in and not getting caught out by short-term factors.

"The more investors understand their retirement savings vehicle, the more likely they are to make better-informed decisions and be better positioned to achieve their retirement goals."