Total KiwiSaver assets rose nearly $9 billion in the second quarter with strong market returns across most funds.
Financial research company Morningstar, which tracked the data, said KiwiSaver assets hit $129.1b in the three months ended June.
Aggressive and growth KiwiSaver funds continued to outperform others.
“Over 10 years, the aggressive category average has given investors an annualised return of 8.6%, followed by growth (7.8%), balanced (6.4%), moderate (4.6%), and conservative (4.1%),” Morningstar director and report author Greg Bunkall said.
Still, most KiwiSaver funds produced positive returns, with all default funds, apart from Fisher Funds, returning more than 4%.
“However it is worth noting that Fisher Funds default fund is marginally the strongest performer for the trailing one year and is middle of the pack over three years,” Bunkall said.
Generate, Quay Street, Milford and Westpac produced strong performances across many risk profiles, while ANZ Bank continued to hold the biggest market share with almost $22b of KiwiSaver funds under management.
ASB Bank was in second position with a market share of nearly 15%, followed by Fisher Funds, Milford and Westpac rounding out the big five.
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The five largest KiwiSaver providers accounted for about two thirds of assets or $83b.
“We estimate these five providers will deduct more than $680 million in fees in 2025 from KiwiSaver members,” he said, adding the average fee was less than 1% (0.82%).
Bunkall said it was important for KiwiSavers to regularly review the makeup of their portfolio with their financial advisor.
“Whilst I guess individuals might be having a hard time, volatility is good in a retirement savings product because your contributions are going in regularly.They’re buying companies essentially on sale at different times when there is volatility.
“And throughout all that volatility, obviously markets have been strong and have performed well and you can see that through the numbers.”
rnz.co.nz
