Friday's release of Reserve Bank (RBNZ) data revealing the total amount invested in all KiwiSaver funds helps us understand the sort of return value the fund management industry brings to this important retirement savings programme.
As at the end of January, 3,021,543 people had active KiwiSaver accounts. That means that more than 60% of the population has an account, making them ubiquitous.
The RBNZ (T42) says they hold accounts worth $65.5 billion as at the end of December.
The IRD reports that they transferred $6.94 bln in contributions (from members, employers, and a now-small Government flow) in calendar 2019. That takes the all-time contribution transfer into KiwiSaver to $51.457 bln.
From this data we can easily calculate the after-tax, after-all-fees overall performance of this retirement savings scheme.
|end Value||Contributions||Growth - Cont.||average||NZSF|
|per RBNZ||Growth||paid via IRD||= investment||return||return|
|$ mln||$ mln||$ mln||gain||ATx AFees|
|year to June ...||$ mln||%||%|
|Ten year average||5.8%||14.0%|
And you will have noticed we have benchmarked the KiwiSaver returns with the other big public retirement savings fund, the NZ Super Fund.
Individual members will have their own specific return experience. But overall, it does appear the funds-management industry would only get a "could-do-a-lot-better" grade in 2019.