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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.

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