We’ve got some exciting news to share…
JUNO Growth is the top-performing* KiwiSaver growth fund, in the FundSource results, for the past 12 months - and we couldn’t be prouder!
JUNO Growth came first* out of 35 other KiwiSaver Growth funds rated by FundSource.
We’re pleased to have got off to a good start – and it shows you can get good returns even if you’re paying low fees with JUNO. Low fees mean our members keep most of their returns, which we are really happy about. And, if you’re under 18 or have a balance under $5,000 you keep all the returns, because we don’t charge fees on these balances.
*Based on FundSource results for the 12 months to 31 August 2019. Figures are before tax. Other providers’ figures are after fees, but ours are before, due to our monthly fixed fees. But because JUNO has low fees, this wouldn’t make a difference to our placing because it’s almost 2% ahead of second place.
But isn’t it about long-term performance?
Yes. KiwiSaver is a long-term investment. Many of you will be invested in KiwiSaver for 30 or more years, so one-year returns don’t mean too much over this long time period. But regardless, we are happy with this result!
Why join JUNO?
What about JUNO Balanced and Conservative?
Balanced came in at number 14 of 39, with returns of 6.7%, and Conservative number 34 out of 40, with returns of 3.75%**
JUNO Conservative is defensively positioned and during uncertain financial markets (think the US/China trade war) our investment team have had high cash levels. This means very little loss and consistent, if slow, growth. This may change if our investment team get more confident with the markets.
**Based on FundSource results for the 12 months to 31 August 2019. Figures are before tax. Other providers’ figures are after fees, but ours are before, due to our monthly fixed fees.
How do you know if performance is good or bad?
Markets go up and down, and KiwiSaver providers’ performances vary from year to year. But long-term returns are important to check. Past returns are no guarantee of future returns, but if your provider is continually doing poorly, even in good years for markets, that could be a warning signal.
The best performance reference point for most KiwiSaver funds is their market index. A market index is meant to have a similar make-up to the fund you’ve chosen, which is important because it means the index has similar risk to what you are taking with your fund. If your fund does better than its index, then it’s outperforming. If it does worse, it’s underperforming. Again, longer periods are more meaningful.
You can also look at online tools to compare your fund’s performance against other, similar funds. Sorted’s Smart Investor tool, the FMA’s KiwiSaver tracker, and reports like FundSource’s and Morningstar’s, can provide a good guide. (Note, you won’t yet see JUNO and some other providers on Morningstar yet, because they’re too new).
Does my provider’s investment style impact returns?
There are two strategies at play when it comes to KiwiSaver, providers can be actively or passively managed.
If it’s actively managed, like JUNO, this means there are real people (fund managers) making decisions about where to invest your money. This can be good in times where markets are rough, because fund managers can make decisions to reduce the risk of your investment.
Passive management means your investments track a major market index. No one is trying to beat the market to get you better returns and there are no people making decisions.
You often pay more fees for active management – but not with JUNO. We’ve shown you don’t need to pay high fees for active management. We charge one low, fixed monthly fee in dollars, and in return you get highly experienced fund managers managing your money.
It’s important to find out if your KiwiSaver provider is active or passive, and are you happy with the fees and returns? If you’re being charged high fees for just following a market index, it might be worth taking another look.
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Published 3 October 2019
Pie Funds Management Limited is the issuer of the JUNO KiwiSaver Scheme. You can read our Product Disclosure Statement here. This article is general in nature only and has not taken into account any particular person’s objectives or circumstances. We recommend you speak with a financial adviser before relying on the content. All content is correct at time of publication date.