KiwiSaver Returns: A Closer Look

Why bigger doesn’t always mean better in KiwiSaver

According to Radio New Zealand’s (RNZ) article Biggest KiwiSaver managers lagging in returns (1 June 2026), the biggest KiwiSaver providers are delivering among some of the worst returns. RNZ reported that some of New Zealand’s largest KiwiSaver managers lagged peers over longer periods in parts of the market. That does not mean every large provider is a poor option. But it is a reminder that size and brand recognition do not necessarily equal stronger investment returns. 

Which providers were singled out

The article is based on Dec 2025 Morningstar research data and focuses on some of the larger incumbent providers, particularly those that have benefited from being default providers that automatically receive funds from new KiwiSaver members, so they faced less pressure to perform than smaller or newer challengers.

A number of large providers were singled out for poor performance:

• ANZ has 16.6 percent of the KiwiSaver market, the largest of all providers. But it was the second-poorest performer over three and five years in the conservative category and the worst over 10 years. It was the second-poorest in the balanced category over three, five and 10 years. And it was the third-poorest in growth over three years and 10 years.
   
  
• Fisher Funds, with 13.5 percent of the market and the third-largest provider, had the lowest one-year returns in the balanced category and was near the bottom across one, three- five and 10 years in the growth category.
  
  
• AMP funds with the 5.7 percent of the market had funds that were the worst in the growth category and balanced category over 10 years.

What the article is really saying

The RNZ article focused on a simple idea: bigger is not always better. 

RNZ also quoted Morningstar’s view that these differences are not always just about manager skill. Results can vary because funds take different levels of risk, hold different amounts of cash or bonds, and have different exposure to global shares. Two funds with the same label, such as “growth”, may still behave quite differently over time.

Why this matters to KiwiSaver members

This matters because many people assume a large provider must be safer, stronger or automatically better at delivering results. As the RNZ report suggests, KiwiSaver performance is more complex than that and larger providers can in fact underperform.

It also helps explain why performance tables can look very different depending on the period being measured. A provider that looks strong over one year may not look as strong over five or 10 years where a poor investment strategy is more likely to be revealed.

Our perspective

We took a look at the latest March 2026 Morningstar research to see if the same providers were still underperforming, and also which providers were outperforming.

• ANZ still has the worst performance over 10 years in the Conservative category and has funds that are in 2nd to last in both the Balanced and Growth categories.
  
  
• Fisher Funds is 2nd to last over 10 years in the Moderate category, and towards the bottom in the Balanced and Growth categories.

• AMP is towards the bottom in the Conservative category, and has funds that are last in the Moderate, Balanced and Growth categories.

We also took a close look at the long-term performance of some of our preferred KiwiSaver providers, with a particular focus on the Aggressive and Growth categories where the majority of our Nautilus clients are invested.

• Booster is 1st over 10 years in the Aggressive category and towards the top in Growth. 

• Generate is 2nd over 10 years in the Aggressive category and towards the top in Growth, plus they are 2nd in the Moderate category. 
  
  
• Milford is 1st over 10 years in the Growth, Balanced and Conservative categories.
  
  
• Pathfinder does not have 10-year performance data yet, but they generally rank first for ethical performance in most fund categories (Mindful Money).

Final thought

The main lesson is that provider size should not be treated as a shortcut for judging quality or performance, and that smaller, specialist providers can often outperform.

If your KiwiSaver is with one of the providers highlighted for poor performance, or you are just interested in learning more about some of the top providers, why not book a time with us to review your KiwiSaver goal and options?

New to Nautilus?

Already a client?

General information only, not financial advice. No liability accepted for errors or reliance. If needed, seek professional advice.

© Nautilus Advisers Ltd. All rights reserved.