A Morningstar survey for the three months ending in September shows that the value of KiwiSaver savings increased by about $7 billion, reaching $117.6 billion. This follows an $8 billion increase in the first half of 2024.
Most funds, whether balanced, aggressive, or conservative, had average quarterly returns of about 4 percent. Morningstar’s data director, Greg Bunkall, noted that over the year, returns varied between funds. The balanced category showed a return of about 16 percent, while conservative funds had around 11 percent.
In the short term, BNZ and Pathfinders performed well in the balanced category, but over a longer period of 10 years, Milford had strong performance overall.
For the quarter, ANZ led the market with over $21.8 billion in savings. ASB was second, Fisher Funds third, Westpac fourth, and Milford fifth.
Bunkall emphasized that account holders should focus on long-term savings goals rather than short-term returns. He advised those with 10 to 30 years until retirement to consider their risk profile and choose the right fund. This way, they can benefit from compounding returns by investing in more aggressive asset classes.
