Morning Star Report: What Happened in the December 2025 Quarter?

KiwiSaver balances continued to grow over the December 2025 quarter, supported by positive market returns and steady contributions. According to the latest Morningstar KiwiSaver Survey, total KiwiSaver assets are now sitting at around $145 billion, up almost $5 billion over the quarter.

While markets weren’t without ups and downs, most KiwiSaver members saw their balances move in the right direction.

How did KiwiSaver funds perform?

According to Morningstar’s KiwiSaver Benchmark Returns, all major KiwiSaver fund types delivered positive returns over the past three months:

• Conservative funds returned an average of 0.7%

• Balanced funds returned an average of 1.6%

• Growth funds returned an average of 1.7%

• Aggressive funds returned an average of 2.8%

As expected, funds with a higher exposure to shares performed better than more conservative options. Global share markets outperformed New Zealand shares, and offshore investments also benefited from currency movements earlier in the quarter.

Are Kiwis necessarily in the best place?

Another important takeaway from the latest Morningstar KiwiSaver Survey is that many New Zealanders may not necessarily be in the best-performing KiwiSaver options for their long-term goals.

For example, despite managing approximately $23 billion across all KiwiSaver funds, ANZ, New Zealand’s largest KiwiSaver provider by assets, ranked 13th out of 17 providers for average Growth fund returns over the past 10 years. This highlights that size and familiarity don’t always translate into stronger long-term outcomes.

What helped (and hurt) returns?

What helped:

• Strong performance from global share markets

• Offshore investments outperforming New Zealand shares

• Growth-focused portfolios benefiting the most

What held things back:

• New Zealand shares lagged overseas markets

• Bonds delivered mixed results

• Crypto assets fell sharply and detracted from returns where exposure existed

This highlights why diversification is important, not all asset classes perform well at the same time.

Long-term returns still reward patience

While short-term performance often grabs attention, long-term results tell a more meaningful story. Over the past 10 years, average annual returns have shown that funds with higher exposure to growth assets have delivered stronger outcomes, albeit with more volatility along the way.

KiwiSaver fees still matter

Morningstar estimates that KiwiSaver members are paying around $1.13 billion per year in fees, with the average asset-weighted fee sitting at roughly 0.81% per year.

What does this mean for you?

• Being with a high performing provider matters

• Your fund type (conservative vs growth) remains one of the biggest drivers of outcomes

• Being in the right fund for your timeframe and goals is more important than chasing recent returns

• Reviewing fees and structure can make a real difference over time

What should you do next?

If you haven’t reviewed your KiwiSaver recently or if you’re not sure whether you’re in the right fund for your timeframe, risk tolerance, or plans (such as buying a first home or preparing for retirement) a review could make a real difference over time.

If you’d like a second opinion or help understanding how your KiwiSaver compares, feel free to get in touch. You can visit our webpage here.

Source: Morningstar KiwiSaver Survey (December 2025 Quarter). Past performance is not an indication of future returns.