On the performance of KiwiSaver funds

Abstract

Purpose

This paper aims to investigate the risk-adjusted performance of the KiwiSaver Growth funds for the period 2007-2013 in New Zealand.

Design/methodology/approach

Performance attribution regressions are used to measure risk-adjusted performance of KiwiSaver funds.

Findings

This paper found that there is no evidence of systematic risk-adjusted outperformance of KiwiSaver Growth funds, and in several cases, there is evidence of significant underperformance. This paper further reports substantial variation in the amount of risk-taking, and local and international stock market exposure of KiwiSaver Growth funds.

Originality/value

KiwiSaver is becoming an increasingly important investment vehicle for many New Zealanders saving for retirement. This is the first paper that considers the performance of KiwiSaver funds.

Citation

Frijns, B. and Tourani-Rad, A. (2015), "On the performance of KiwiSaver funds", Pacific Accounting Review, Vol. 27 No. 3, pp. 266-281. https://doi.org/10.1108/PAR-09-2013-0089