What is a benchmark?

A benchmark is a standard against which the performance of your investments can be measured.

Benchmarks are a useful tool to help judge whether or not your investment manager is adding value. If the returns on your investment are higher than the benchmark, it's a good sign that you're getting additional value because of your investment manager.

Benchmarks need to be appropriate to the market you're investing in for it to be meaningful. There’s no point in comparing a global share fund against the performance of a term deposit, or a bond fund against a property trust. It's also important to look at long-term comparisons of investment performance over short-term performance; even the very best investment managers will fail to deliver benchmark performance in some years.

Cash benchmark

The Cash benchmark is designed to measure a fund made up only of cash assets. It constitutes:

  • 100% S&P/NZX 90-Day Bank Bill Index1.

CashPlus benchmark

As of 1 April 2019, the CashPlus fund is closed to new members

The CashPlus benchmark is designed to measure a fund of cash and fixed interest assets. It constitutes:

  • 75% S&P/NZX 90-Day Bank Bill Index1
  • 25% S&P/NZX NZ Government Bond Index2

Default Conservative benchmark

Prior to 1 December 2021, this was named the Default fund

The Default Conservative benchmark is designed to measure a 'conservative' fund made of mostly fixed interest assets and equities, with a specified allocation to shares. It constitutes:

  • 50% S&P/NZX 90-Day Bank Bill Index1
  • 30% S&P/NZX NZ Government Bond Index2
  • 10% Solactive Kiwi Global Markets Screened NZD Index3
  • 10% Solactive Kiwi Global Markets Screened Hedged to NZD Index3.

Conservative benchmark

The Conservative benchmark is designed to measure a 'conservative' fund made up of fixed interest assets and equities. It currently constitutes:

  • 35% S&P/NZX Bank Bills 90-Day Index1
  • 35% S&P/NZX NZ Government Bond Index2
  • 8% Solactive Kiwi Global Markets Screened NZD Index3
  • 20% Solactive Kiwi Global Markets Screened Hedged to NZD Index3
  • 2% S&P/NZX 50 Gross Index.

Default benchmark

This is a new fund available as of 1 December 2021

The Default benchmark is designed to measure a 'balanced' fund made up of world equities and fixed interest assets. The benchmark currently constitutes:

  • 20% Bloomberg NZ Bond Composite 0+ Yr Index
  • 20% Bloomberg Global Aggregate Total Return Index Hedged NZD
  • 9% S&P/NZX 50 Gross Index
  • 18% Solactive Kiwi Global Markets Screened NZD Index3
  • 33% Solactive Kiwi Global Markets Screened Hedged to NZD Index3.

Balanced benchmark

The Balanced benchmark is designed to measure a 'balanced' fund made up of world equities and fixed interest assets. The benchmark currently constitutes:

  • 22.5% S&P/NZX Bank Bills 90-Day Index1
  • 22.5% S&P/NZX NZ Government Bond Index2
  • 17% Solactive Kiwi Global Markets Screened NZD Index3
  • 34% Solactive Kiwi Global Markets Screened Hedged to NZD Index3
  • 4% S&P/NZX 50 Gross Index.

Growth benchmark

The Growth benchmark is designed to measure the equity market performance of all countries with a moderate position in cash and fixed interest. The benchmark currently constitutes:

  • 10% S&P/NZX 90-Day Bank Bill Index1
  • 10% S&P/NZX NZ Government Bond Index2
  • 30% MSCI All Country World Index
  • 50% MSCI All Country World Index 100% Hedged to NZD Index.

Other notes

The actual asset allocation of each fund may at times differ from the asset allocation for the relevant benchmark because we have an active investment management style. You can find the actual asset allocation for each fund in our KiwiSaver fund updates.

  • Unless otherwise specified, our returns and benchmarks are always shown after all taxes and fees have been deducted.
  • Annual management fees are different for each fund for the Kiwi Wealth KiwiSaver Scheme. For detailed information, check the fee schedule. Annual management fees are considered tax-deductible.
  • The ‘MSCI All Country World Index 100% Hedged to NZD Index’ is a custom index calculated by MSCI for, and as requested by, Kiwi Wealth.
  • Transaction fees on Government Bonds are modelled at 0.02% p.a.
  • Transaction fees on equities are modelled at 0.075% p.a.
  • Tax on bonds and bank bills is modelled by multiplying the net monthly change by the top PIR.
  • Tax on equities is modelled by multiplying 5% by the top PIR.

If you have any questions about benchmarks, feel free to contact us.

1. This index changed its name from the ANZ New Zealand 90 Day Bank Bill Gross Return Index on 1 December 2015.

2. This index changed its name from the ANZ New Zealand Government Bond Daily Gross Return Government Stock Index on 1 July 2015.

3. Solactive AG (Solactive) is the licensor of each of the Solactive Kiwi Global Markets Screened NZD Index and Solactive Kiwi Global Markets Screened Hedged to NZD Index (each an Index). The financial instruments that are based on each Index are not sponsored, endorsed, promoted or sold by Solactive in any way and Solactive makes no express or implied representation, guarantee or assurance with regard to: (a) the advisability in investing in the financial instruments; (b) the quality, accuracy and/or completeness of any Index; and/or (c) the results obtained or to be obtained by any person or entity from the use of an Index. Solactive reserves the right to change the methods of calculation or publication with respect to any Index. Solactive shall not be liable for any damages suffered or incurred as a result of the use (or inability to use) of an Index. Solactive is a trademark of Solactive AG.