Written by Paul Gregory, Group Head of Investments
KiwiSaver Scheme Performance Update
The JUNO KiwiSaver Scheme launched a year ago and we are pleased with the performance of our funds since inception. We’re conscious a year isn’t long enough to judge the ability of an investment manager. But we’re happy with the start we’ve made, particularly when we just started investing at the end of August and much of our first 12 months has been in less-than-hospitable market conditions. Being a young, actively managed fund in rough markets has meant we’ve had high cash relative to most other KiwiSaver providers for much of our first year. That’s especially obvious in the returns, after 28% PIR tax and fees, for our Balanced and Conservative Funds, which have carried even more cash than the Growth Fund. Nevertheless, each fund has still usefully outperformed its market index in some periods – the Growth Fund in every period, and by a pleasing margin.
Markets continued their queasy progress of peaks and troughs in July, typically ending the month not far from where they started (the S&P 500 was up less than a percent, the MSCI ACWI down by less than a percent). The US Federal Reserve announced interest rate cuts but stability in US-China relations is still a half-step forward, one-step-back dance. While we still have no firm sense of market direction, we’ve taken advantage of a number of buying opportunities caused by good companies being tossed too hard in the market swell. We modestly reduced our cash to about 50/50 in the Growth Fund and bought several new companies from France, Germany, Hong Kong, Sweden and the United States. We now have direct holdings in 29 global companies from 13 different countries.
*Fund performance is before fees and assumes a PIR of 28% (the highest PIR)
Pie Funds Management Limited is the issuer of the JUNO KiwiSaver Scheme. The Product Disclosure Statement is available at www.junokiwisaver.co.nz. Past performance is not an indicator for future performance. This is not intended to be financial advice and does not take into account any particular person’s circumstances. Before relying on this information, please speak to an independent financial adviser.