Your investment returns depend on the performance of the investment option(s) you have chosen to invest your savings in. Returns may be negative, nil or positive.
Daily unit pricing
The scheme uses daily unit pricing. When you log in to your account to view your investment balances online, you see the unit price, number of units and dollar value for your holding in each investment option.
A unit represents a share in a particular investment option. The unit price is based on the net value of all the investments held under that investment option. At the end of each trading day, we declare a unit price for each option, just like a share price. When your contributions are paid into the scheme, you effectively buy additional units based on that day’s unit price. Similarly, when you apply for a benefit, you redeem units to the value of your withdrawal based on that day’s unit price.
Investment management fees and expenses are reflected in the unit price. From 1 July 2019 the scheme became a Portfolio Investment Entity (PIE). Before 1 July 2019 tax is reflected in the unit price. From 1 July 2019 tax is not reflected in the unit price.
|After expenses but before tax||Current price 12/12/2019|
Our investment manager Mercer prepares a quarterly update on investment markets. Read it here.
These investment performance figures are based on the change in unit prices over a given period and are expressed as a percentage. Returns are after expenses and before tax. Percentage returns on your investments will vary depending on your prescribed investor rate (PIR).
Percentage returns for this scheme year
|Year to date||2.12%||2.28%||1.70%||
|5-year return (p.a.)||6.75%||6.34%||4.99%||2.68%|
|10-year return (p.a.)||10.34%||9.40%||7.46%||n/a|
Returns after expenses and before tax for periods ended 30 June 2019.
PSS vs KiwiSaver
These graphs compare returns from our three main funds with comparable funds in the Morningstar KiwiSaver Report. Morningstar is an independent company that monitors fund performance. Every provider has a slightly different strategy, so it is difficult to make comparative statements against average returns. However, comparing PSS returns against KiwiSaver funds with a similar mix of investments provides a benchmark that’s easy to relate to. Morningstar urges caution when comparing returns, noting that “past performance is not a guide to future performance. This year’s best performers can easily be next year’s worst”. Morningstar advises that “understanding your risk profile, and the mix of growth and income assets is critical”.
It’s worth noting that the scheme’s investments are diversified across a wider range of asset classes than most KiwiSaver schemes which have a higher concentration of, for example, New Zealand shares. This has served those schemes well over the last few years of the current market cycle. However, we believe our strategy will serve members well in the long term as it has done in previous market cycles.
Performance against benchmarks
Each option aims to outperform its benchmark. You can read more about benchmarks in the Statement of Investment Policy and Objectives.
Performance against benchmark
|to 30 September 2019 (before fees and tax)|
|3 years||5 years||7 years||10 years|