The latest Morningstar KiwiSaver Survey for Q4 2024 has confirmed what we expected – 2024 was a stellar year for KiwiSaver investors. KiwiSaver assets increased, ending the quarter at NZD 121.9b, up around $24b for the year. Growth funds delivered an average return of 15% after fees, with aggressive funds performing even better. However, the report also revealed that not all providers are keeping pace, making it more important than ever to review your KiwiSaver fund.

The Standout Performers: Generate & Milford

• Generate Focused Growth Fund is the clear frontrunner for aggressive investors. While it ranks #3 for 10-year performance (10.1%), it’s #1 for both one-year (23.8%) and three-year performance (7.6%). We’ve seen firsthand the difference this fund is making for our clients – many who switched to Generate in the last four years are now seeing exceptional returns. 
• Milford Active Growth Fund remains the top-performing KiwiSaver growth fund over 10 years, delivering 10.3% p.a. While Milford had a slightly weaker year, Morningstar still acknowledges its consistently high long-term performance across multiple fund categories, stating that ‘Milford has consistently high performance within the moderate, balanced and growth categories over the long term, albeit struggling a little recently.’ 

Not All Providers Are Keeping Up

According to the Morningstar Report, KiwiSaver assets on the Morningstar database increased during the December quarter to 121.9 billion. ANZ leads the market share with almost NZD 22 billion. ASB is in second position, with a market share of 15.0%. Then goes Fisher. Westpac, then Milford to round out the big five. 

However, while some KiwiSaver providers are delivering excellent results, others are lagging. The report highlights that ANZ – the largest KiwiSaver provider – has been one of the worst performers over both the one-year and 10-year periods​. Large-scale providers don’t always mean better results, so it’s crucial to check if your fund is working for you. 

Why Reviewing Your KiwiSaver is Essential

Even if you’ve been happy with your fund in the past, the right fund for you today might not be the best fit in five years. Here’s why regular reviews matter: 

• Your life stage changes: If you’re in your 30s or 40s and invested in a conservative fund, you might be missing out on significant growth. If you’re closer to retirement, it may be time to de-risk. 
• Performance varies: A fund that performed well five years ago might now be falling behind. Make sure your fund is consistently delivering strong long-term returns. 
• Fees impact your returns: Some funds charge high fees without delivering competitive returns. Over time, fees can eat into your savings. 
• Markets shift: Economic conditions change, and different funds respond in different ways. A regular review ensures your investments are still aligned with market trends and your goals. 

Time for a KiwiSaver Check-In?

With KiwiSaver balances growing and market conditions evolving, now is the perfect time to review your fund’s performance and strategy. Whether you want to maximise growth, lower fees, or adjust your risk level, we’re here to help you make an informed decision. 

If you haven’t reviewed your KiwiSaver fund in the last few years, let’s chat. A quick review could be the key to a more secure retirement. And… if you book a KiwiSaver review this month, you’ll go in the draw to win a month’s mortgage repayments on us (up to the value of $5,000). To book your review, click here.

The content of this article should not be taken as financial advice, or a recommendation of any financial product. These insights are based on current economic commentary, market pricing for interest rates, and our personal opinion. Threefold is not liable or responsible for any information, omissions, or errors present.