Our Investment Performance
We believe returns data should tell investors what they would get, in their hand, if they were to cash up their account. That means all fees, costs, charges and all taxes deducted, and the assets valued at market prices. Not all KiwiSaver providers do this, which makes it near impossible to compare KiwiSaver providers’ performance.
The graph below shows Gareth Morgan KiwiSaver Scheme investment returns after all fees, costs, charges and taxes have been deducted.
|
|
An interactive graph, which shows the returns for the Gareth Morgan KiwiSaver Scheme against market benchmark returns. Returns are shown after all taxes, fees, charges and costs for the Conservative, Balanced and Growth portfolios.
|
|
|
Total Funds Under Management: $646,000,000 Members: 57,004 (as at 31 Dec 11)
|
|
|
* The Prescribed Investor Rate (PIR) is the rate that your KiwiSaver investment income is taxed at. The PIRs have changed several times since the inception of KiwiSaver and there are currently three rates to choose from 10.5%, 17.5% and 28%. We will be updating our graph soon to include the new PIR of 10.5%.
Past performance is no indicator of future performance. In other words the best performing KiwiSaver Scheme this year may not be the best performing KiwiSaver Scheme next year.
Why do you compare your GIPS performance to a benchmark?
Video transcription
Interviewer: Why do you compare your GIPS performance to a benchmark?
Andrew Gawith: We’ve committed to using GIPS, which is the Global Investment Performance Standards for reporting performance to our customers, our KiwiSaver members. GIPS sets down a whole series of standards and processes for reporting performance, we have to follow those. And one of the requirements is to provide a benchmark, for each of the portfolios that we provide, so that members can compare our performance to a relevant benchmark.
Interviewer: Why don’t you compare your performance to other providers?
Andrew Gawith: Well, other providers don’t follow the GIPS standards, and therefore we don’t know what their performance numbers are based on. Morningstar and Fundsource report the performance of other KiwiSaver providers, again, we can’t rely on the integrity of those numbers – certainly they are not independently verified.
Interviewer: Why are your numbers not in the Morningstar reports?
Andrew Gawith: the GIPS performance data that we provide and publish is not comparable, we know it’s not comparable to the Morningstar and Fundsource data – ours is after all fees and all taxes. So they simply are not comparable. What is important for members, and this goes for all KiwiSaver members, is that the government is looking to compel KiwiSaver providers to report performance on a standard basis, so that performance is comparable. We are putting in a submission to the government, that they adopt the GIPS approach to reporting KiwiSaver performance. And if this were the case, we would be delighted to have our performance numbers published alongside everybody else’s, on the same basis.
Interviewer: Couldn’t you just add the taxes back in and then put your numbers in the Morningstar tables?
Andrew Gawith: We could do that, and for a period we were doing that. We were in the Morningstar tables. But, what we found was, that in fact we took all our fees off, but it was quite obvious from the fine print of the other KiwiSaver providers, that not all fees were being taken off. So again, an unfair comparison.
We are after delivering performance reporting to members that really does mean what they would get in their hand, as opposed to something short of that.
GIPS - Global Investment Performance Standards
GIPS is a set of global standards for measuring and presenting past performance. GIPS standards were designed to ensure firms use reliable performance measurements based on the prinicples of fair representation and full disclosure. GIPS is widely accepted internationally as a minimum standard for reporting investment returns; the adoption rate in the UK is about 90%, US 85% and Australia 60%. In New Zealand, as at 30 April 2011, there are currently only two fund managers who are GIPS compliant.
Gareth Morgan KiwiSaver Limited is compliant with GIPS. Gareth Morgan KiwiSaver Limited's processes and performance reporting procedures have been scrutinized and verified by an independent GIPS consultant. Gareth Morgan KiwiSaver Scheme members can be assured that we meet these standards.
See what Gareth has to say about GIPS
What is a benchmark and why is it important?
GIPS compliant performance tables
The tables below show GIPS compliant performance data for the three Gareth Morgan KiwiSaver Scheme portfolios, for the current year to date, plus annual returns for each calendar year since inception.
Company disclosure
Gareth Morgan KiwiSaver Limited is the manager of the Gareth Morgan KiwiSaver Scheme, a registered KiwiSaver scheme under the KiwiSaver Act 2006. Gareth Morgan KiwiSaver Limited claims compliance with the Global Investment Performance Standards (GIPS®). Gareth Morgan KiwiSaver Limited has been independently verified for the period from 1 October 2007 through 31 December 2010. Verification assesses whether Gareth Morgan KiwiSaver Limited has complied with the composite construction requirements of the GIPS standards on a firm-wide basis and that Gareth Morgan KiwiSaver Limited’s policies and procedures are designed to calculate and present performance in compliance with the GIPS standards.
Conservative composite
|
|
Twelve months to |
Returns for the years ended 31 Dec |
|
|
31 December 2011 |
2010 |
2009 |
2008 |
2007* |
|
Conservative composite |
3.00% |
3.47% |
2.51% |
2.22% |
-0.44% |
|
Benchmark |
2.98% |
3.48% |
3.68% |
-1.13% |
-0.03% |
|
|
Returns are shown in NZD, net of fees and taxes, *from 1 October 2007. |
Benchmark disclosure is available here.
Balanced composite
|
|
Twelve months to |
Returns for the years ended 31 Dec |
|
|
31 December 2011 |
2010 |
2009 |
2008 |
2007* |
|
Balanced composite |
-1.23% |
2.81% |
2.84% |
-3.29% |
-0.84% |
|
Benchmark |
-1.91% |
4.02% |
6.80% |
-15.54% |
-1.82% |
|
|
Returns are shown in NZD, net of fees and taxes, *from 1 October 2007.
|
Benchmark disclosure is available here.
Growth composite
|
|
Twelve months to |
Returns for the years ended 31 Dec |
|
|
31 December 2011 |
2010 |
2009 |
2008 |
2007* |
|
Growth composite |
-6.55% |
1.94% |
3.40% |
-10.79% |
-1.12% |
|
Benchmark |
-5.63% |
2.10% |
3.30% |
-23.93% |
-4.05% |
|
|
Returns are shown in NZD, net of fees and taxes, *from 1 October 2007. |
Benchmark disclosure is available here.
Annual GIPS verified reports
For detailed GIPS verified reports for each of the Gareth Morgan KiwiSaver Scheme portfolios for the year ended 31 December, use the links below. There is an additional report that states the composition of each of the three funds.
GIPS compliant performance presentations 31 December 2010:
• Conservative portfolio performance
• Balanced portfolio performance
• Growth portfolio performance
Statement on the composition of each of the portfolios above:
• Composite descriptions
|
|