Superannuation schemes

Growth and aggressive funds have a much higher proportion of ‘growth’ assets. Growth assets are things like shares and property and these go up and down in value more frequently than ‘income’ assets like cash and bonds. This means their returns may rise and fall quickly. However over time they typically provide a higher return.

Superannuation scheme returns aren’t shown in tools like Smart Investor as there are often special features of superannuation schemes that mean you can’t compare them directly to KiwiSaver funds. However you can use average KiwiSaver fund returns as a guide to what you should expect from your superannuation scheme.

1. How big your balance is – the bigger the balance, the greater the fee
2. The type of investment fund you’re in – generally lower-risk funds are cheaper than higher-risk funds (but remember lower-risk funds give less overall return)
3. The scheme provider – some providers charge higher fees than other

If you’re using a financial adviser they may also charge you a fee for their services. There may also be other fees for example if you:

• change your investment options
• transfer savings from another superannuation scheme
• withdraw money from your superannuation scheme.

All superannuation schemes must give you a copy of their annual report, or a link to it on their website, within six months of the end of their financial year.

The annual report describes any changes made to the scheme in the last year, how it’s being managed, how investments have performed against the scheme’s goals, and if the auditor has raised any concerns. It also gives details of the size of the scheme’s membership, total funds invested and investment returns.

In addition to the annual report, you’ll also be able to access annual fund updates for the individual funds within your scheme. Fund updates let you see how your fund is performing, what it’s costing you and what your fund is currently investing in. You’ll find fund updates on the Disclose register.