Morningstar Releases KiwiSaver Fund Analyst Research

Morningstar Releases KiwiSaver Fund Analyst Research

Morningstar today released its KiwiSaver fund analyst research on the six default providers plus Fisher Funds and Westpac. This translates into 47 fund research reports covering over 80.0 percent of the KiwiSaver assets on the Morningstar database.

"This represents the first publication of comprehensive, in-depth analyst research on KiwiSaver options from an independent source," said Morningstar Australasia Co-Head of Fund Research Chris Douglas. "We've designed our reports to provide detailed but accessible overviews of the key strengths and weaknesses of the major KiwiSaver options, including importantly their risks and relative costs, to help in the selection of the most appropriate retirement savings vehicle."

Each fund has been assigned a Morningstar® Analyst RatingTM on a five-tiered scale which has three positive levels - Gold, Silver, and Bronze - in addition to Neutral and Negative ratings. Click here to read more about these Analyst Ratings.

Morningstar does not charge or accept payment from KiwiSaver scheme providers for the production of analyst qualitative research. The reports will be updated annually or in response to substantial change. Morningstar has published qualitative analyst research on New Zealand managed funds since 1999.

Key Findings
• KiwiSaver funds from Mercer, OnePath (including ANZ, SIL, and The National Bank) and Westpac were the highest-rated with Analyst Ratings of Bronze.
• KiwiSaver funds from ASB, AXA, Fisher Funds, and Tower were assigned Neutral Ratings.
• The AMP KiwiSaver funds have been designated 'Under Review'. Morningstar has yet to gain a complete understanding of the transition to a combined AMP/AXA offering. The underlying direct property exposure further complicates the move.
• The KiwiSaver schemes we assessed remain a work in progress. All KiwiSaver providers have undergone people and process changes since the launch of the KiwiSaver scheme in October 2007.
• Each KiwiSaver fund assessed has a Total Expense Ratio for the 2010/11 financial year.

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