Sunrise over mountain in horizon

AMP KiwiSaver Scheme performance update – April

Markets in April have continued to deliver a solid performance with positive returns

The month of April has continued to provide a solid performance for investors globally. Global share markets picked up, led by the US and China with Europe showing signs of improvement. Australasian equities continued to grow too with Australia edging New Zealand slightly. The NZ central banks have kept interest rates relatively low for the first quarter, which supported Global bond and NZ bond returns for the month. While we do expect some moderation in market performance given the political instability due to US relationships with China, Iran and Venezuela, the markets will continue to perform positively in the second quarter of 2019. The AMP KiwiSaver Scheme funds continue to rally and have shown a good level of gains in the first four months of this year.

KiwiSaver is a long-term savings plan. If you would like more information or to discuss whether you’re in the right fund to suit your savings needs, please talk to your Adviser or call us on 0800 267 5494.

How do the latest returns compare to the average term deposit?

Compared to the average return on the average term deposit for 1 year of 3.41% and 5 years of 5.38% (offered by the major banks in New Zealand in April 2018 and April 2014 respectively), the returns for some of our key funds were:

Fund type

Annual return (1 year)*

Average annual return (5 years)**

AMP Growth Fund

8.50%

7.86%

AMP Balanced Fund

7.49%

6.76%

AMP Moderate Fund

6.29%

5.49%

*30 April 2018 - 30 April 2019
**30 April 2014 - 30 April 2019

These returns are after total fund charges and before tax and are calculated based on unit price movements adjusted by total fund charges and tax credits and including a full allowance of any foreign tax credits.

You can view returns for all the AMP KiwiSaver Scheme funds here.  

If you have any questions you can talk with your Adviser or call us on 0800 267 5494.

Detailed commentary

April saw a more muted continuation of the good returns from most growth assets, in particular Global and Australian equities, NZ equities and listed property. Global shares returned 3.8% for the month, bringing their 2019 return so far to +16.8%. The returns from the international equities was enhanced by a 2.1% fall in the NZ dollar against the foreign currency basket, and the 1.4% Kiwi dollar decline versus the Australian dollar.

Emerging Market equities gained 2.6% for the month and are up 12.6% year-to-date. Australian equities gained 2.4%, ahead of the New Zealand equity market’s advance of 1.7% . NZ listed property led the broader market slightly, with a 1.8% April gain. Global listed infrastructure lagged with a 0.9% April rise, but much of this is due to its strength earlier in the year when infrastructure led returns from shares. Another factor at play in keeping global real asset returns subdued was a turn slightly higher in international bond interest rates.

After logging robust first quarter returns due to a less restrictive stance from key central banks, returns from global and domestic bonds were lower in April. Global treasuries lost 0.2% and NZ bonds were 0.3% lower, though these sectors remain ahead by 2.3% and 2.8%, respectively, for the year to date. Oil prices also gained 6% in April as fears over economic growth subsided.

A very positive start to the year has offset the weakness seen late in 2018 and lifted our funds’ returns across the board. With geopolitical risks rising (eg US-China, US-Iran, US-Venezuela) it is likely we will now see a moderation in market performance and higher volatility. However, we still believe that disruptions will be temporary and asset markets should generally continue their uptrend in the second half of 2019.

A disclosure statement is available on request and free of charge from your Adviser.

*Please note past returns are not indicative of future returns. For more information, download a copy of the AMP KiwiSaver Scheme Product Disclosure Statement and Fund Update Booklet, which have been lodged on the Scheme's offers register entry at companiesoffice.govt.New Zealand/disclose. AMP Wealth Management New Zealand Limited is the issuer and manager of the AMP KiwiSaver Scheme (the 'Scheme'). The Supervisor of the Scheme is The New Zealand Guardian Trust Company Limited.

Important information

Show more

AMP Wealth Management New Zealand Limited is the issuer and manager of the AMP KiwiSaver Scheme (the 'Scheme'). The Supervisor of the Scheme is The New Zealand Guardian Trust Company Limited.

Please note past returns are not indicative of future returns.

For more information, download a copy of the AMP KiwiSaver Scheme Product Disclosure Statement and Fund Update Booklet, which have been lodged on the Scheme's offers register entry at companiesoffice.govt.nz/disclose.

The information included in this article is of a general nature and is not a substitute for financial or other professional advice. To the extent that the information constitutes advice, it is class advice only. Before taking any action, you should always seek financial advice or other professional advice relevant to your personal circumstances. For personal financial advice, we recommend you contact your Adviser or if you don't have an Adviser, contact us on 0800 267 263 and we can put you in touch with one. 

A disclosure statement is available from your Adviser, on request and free of charge.