Investment NZ: Top Performing Moderate KiwiSaver Funds As Of Q4 2020

Apr 5, 2021
By Staff writer

If you’re looking for a stable investment with minimal risk and volatility, you can check moderate KiwiSaver funds. Depending on your scheme, it invests about 30-40% of your money in growth assets and 60-70% in income assets.

Moderate funds offer greater returns than defensive and conservative funds, but no more than balanced and growth funds. If you rank its volatility and risk from 1 to 7 — 7 being the highest — it sits right at 3 or 4. It’s a great investment fund because you’re almost always guaranteed a return, no matter how small it is.

Do you want to invest moderately now? Take a look at the top-performing moderate KiwiSaver funds as of Q4 2020, according to Morningstar's KiwiSaver Survey for December 2020.

Note: This is based on the 3-months total returns of each fund.

Aon Russell Lifepoints Moderate 

Aon Russell Lifepoints Moderate aims to increase the value of your returns more than the inflation rate. It invests your fund in a minimum timeframe of 5 years, with minimal annual membership fees and fund changes.

  • Total returns (3 months): 4.9% p.a.
  • Assets: $30.1 million
  • Daily based member fees: $49.80/ year
  • Asset-based fees: 1.06%
  • NZ domiciled assets: 26.5%
  • Growth assets: 42.1%

Milford Moderate 

Milford Moderate exposes your fund into diversified investment of bonds, cash, and shares. It’s a medium-risk investment with a capital growth of 5 years. Aside from the top local NZ companies, it invests your money into different top global brands like Amazon and Alphabet.

  • Total returns (3 months): 4.5% p.a.
  • Assets: $30 million
  • Daily based member fees: $18/ year
  • Asset-based fees: N/A
  • NZ domiciled assets: Undefined
  • Growth assets: Undefined

Westpac Moderate 

Westpac Moderate performs way above the industry average, regardless if it’s over a shorter or longer investment timeframe. The minimum recommended investment timeframe is 5 years. It offers a lower risk investment option but still promises considerable returns.

  • Total returns (3-months): 4.4% p.a.
  • Assets: $731.7 million
  • Daily based member fees: $22/ year
  • Asset-based fees: 0.72%
  • NZ domiciled assets: 44.9%
  • Growth assets: 38.5%


SuperLife Conservative 

Although the name indicates a conservative fund, the risk and volatility of SuperLife Conservative can be classified into a moderate fund. It scores three in the risk indicator, so you can expect considerable returns on your investment.

  • Total returns (3-months): 4.3% p.a.
  • Assets: $54.9 million
  • Daily based member fees: $30/ year
  • Asset-based fees: 0.57%
  • NZ domiciled assets: 30.6%
  • Growth assets: 30%

OneAnswer Conservative Balanced

Similarly, OneAnswer Conservative Balanced scores within the 3-4 level in the risk indicator. It focuses on your income assets, while still investing your growth assets in a wide range of listed equities properties and infrastructure. 

  • Total returns (3-months): 4.2% p.a.
  • Assets: $230.2 million
  • Daily based member fees: $24/ year
  • Asset-based fees: 0.9%
  • NZ domiciled assets: 33.2%
  • Growth assets: 41.2%

Should you only consider these funds?

These moderate funds aren’t your only options. You should consider other funds that are just as competitive and promise just as great returns on your investment. 

While these funds are the best performers over the last quarter of 2020, they may not be the best ones over longer investment periods including 1-year, 3-year, 5-year, and 10-year. By basing your decision on their 3-months total returns, you’re limiting your choices and you may end up not getting the investment fund for you.

If you’ve set your mind to invest in a moderate fund, it’s highly recommended that you follow these steps.

Compare and find the best KiwiSaver fund for you here at glimp!

Determine what you really need

Having a lower risk investment means your returns may not be as high as well. If you want a high risk, high return investment, you may be better off with a growth or an aggressive fund. On the other hand, this may not be your best choice if you simply want to save using your KiwiSaver. Defensive and conservative funds may be better suited for you.

As a rule of thumb, always ask yourself what you really need in the long term. After all, you don’t reap the returns of your investments immediately. It takes a significant amount of time before you can finally see the results of your investment.

To know which KiwiSaver fund may work well for you, ask yourself the following questions.

  • How does the KiwiSaver provider invest your money?
  • Does the company offer ethical investment?
  • What is the past performance of the fund?
  • Can you sustain the volatility and risk in the long run?

Consult a finance professional

If you’re still not decided on which KiwiSaver fund to invest in, talk to a professional financial advisor. They can share their two cents about what you really need. Always be honest about your financial situation so they can come up with customised recommendations. Otherwise, you may end up with a bad deal.

What’s great about talking to a professional advisor is, they know about fees and risks in-depth! They specialise in different global markets, so they can advise you on the right charges you can handle based on your lifestyle and situation. 

If you want to get another recommendation about the best KiwiSaver tool for you, compare!

Use a comparison website

A comparison tool can help you narrow down your options from a wide array of KiwiSaver funds in the market. Simply select the ones with the options you need to get customised recommendations and results. 

Whether you need one for your retirement, purchasing your first home, or moving abroad, it personalises your results within just a few clicks. Best of all, it only takes a few minutes to compare! It’s that quick and easy!

Compare the best KiwiSaver funds using our comparison tool, right here at glimp.

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