MorningStar KiwiSaver Survey June 2025: What You Need to Know.
Every three months, Morningstar releases its KiwiSaver Survey – packed with data and insights on how funds are performing. We break it down into the key points, so you can see how different KiwiSaver funds are tracking and what’s changed in the market. No fluff – just the important details to keep you informed.
KiwiSaver at a Glance
KiwiSaver continues to go from strength to strength, with total assets now sitting at $130 billion. It’s an impressive result, particularly given the noticeable rise in hardship withdrawals over the past year.
Investor choice is continuing to grow, with new providers entering the market. One of the latest is the Evidential KiwiSaver Scheme – a Consilium offering focused on evidence-based investing through financial advisers. It’s not yet clear how their approach will differ from existing providers, but time will tell.
Who’s on Top (and Who’s Struggling)
Most KiwiSaver funds delivered positive returns over the June quarter, with some providers standing out. Generate, QuayStreet, Milford, and Pathfinder showed strong results across a variety of risk profiles, performing well over both the medium and long term.
New Zealand’s banks have found it tougher to keep up. Westpac, ANZ, and BNZ recorded returns below the average five-year performance in most categories. ASB performed a little better, sitting just above average.
While ANZ remains the largest provider with $22 billion under management, size hasn’t translated into stronger returns for some time.
Business Growth Leaders
It’s been a big year for some providers, with notable jumps in funds under management:
QuayStreet: up $2.44 billion – from $722.7 million to $3.16 billion – a fourfold increase that makes them one of the fastest-growing schemes.
Milford: up $1.50 billion, bringing them to $12.15 billion.
Generate: up $631 million.
ASB: up $524 million.
The trend is clear – active managers and unique offerings are attracting strong investor interest due to their competitive performance.
Ethical Investing is Holding Strong
Providers like Pathfinder and Booster are showing that you don’t have to sacrifice returns to invest in line with your values. Both have outperformed the average across most fund categories, with Booster’s SRI fund standing out in the Aggressive category and Pathfinder delivering strong results in Growth and Balanced.
The Bigger Economic Picture
Over the past year, the economy has faced a mix of challenges and positive signs. Inflation is easing, giving households some relief, and interest rates are expected to stay steady for now. Share markets have generally performed well, supported by strong corporate earnings and steady global growth.
That said, overall economic growth remains modest, and the housing market is patchy - with prices recovering in some areas while others remain flat. It’s a time for cautious optimism as we watch how things unfold.
