KiwiSaver performance data is everywhere — annual returns, 5-year returns, awards, rankings. Most of it is presented in ways that encourage poor decisions. This guide explains how to read performance data correctly, what metrics actually matter, and how to put numbers in context before switching funds based on last year’s league table.
Why Performance Comparisons Are Harder Than They Look
Fund types aren’t comparable
A conservative fund returning 4% and a growth fund returning 10% in the same year doesn’t mean the growth fund is “better.” The growth fund holds more equities — more risk — and in a down year it will fall further. Comparing across different fund types is meaningless. Always compare like for like: growth vs growth, balanced vs balanced.
One year tells you nothing useful
A single year of returns is almost entirely noise. A growth fund that ranks first in one year is statistically no more likely to rank first the next year than any other fund. Twelve months is too short a period to separate skill from luck in active management.
Minimum meaningful comparison period: 5 years. Ideally 10 years.
Gross vs net returns
Some providers report gross returns (before fees); others report net returns (after fees). Always compare after-fee returns. A fund that earns 8.5% gross but charges 1.2% in fees delivers 7.3% to you. A fund earning 8.0% gross with 0.31% fees delivers 7.69% — materially better despite lower headline performance.
Survivorship bias
Some funds are merged or closed when performance is poor. Historical comparisons that only include funds still in existence tend to overstate the performance of the category.
Where to Find Reliable NZ KiwiSaver Performance Data
Primary sources:
| Source | What it provides |
|---|---|
| FMA KiwiSaver Annual Report | Industry-wide data, after-fee returns by provider and fund |
| Sorted KiwiSaver Fund Finder | Fund comparison tool with after-fee returns |
| Morningstar NZ | Risk-adjusted returns, star ratings, detailed fund analysis |
| Individual provider websites | Current returns (check whether gross or net) |
The FMA’s annual KiwiSaver report is the most authoritative source — it uses standardised methodology across all providers, making apples-to-apples comparison possible.
After-Fee Returns by Fund Category: 5-Year Indicative Ranges (to 2025)
The following represents the approximate range of after-fee, after-PIE-tax returns across major providers in each category. Individual fund performance varies within these ranges. These are indicative based on market data through 2025 and should not be treated as guaranteed or precise.
Growth funds (5-year annual return, after fees)
| Performance tier | Annual return range | Examples of providers in this range |
|---|---|---|
| Top quartile | ~8.5%–10%+ | Milford Active Growth, Generate Focused Growth |
| Mid range | ~7.0%–8.5% | Simplicity Growth, BNZ Growth, Booster Growth |
| Lower range | ~5.5%–7.0% | Some bank default funds; Fisher Funds (varies) |
Balanced funds (5-year annual return, after fees)
| Performance tier | Annual return range |
|---|---|
| Top quartile | ~6.5%–8.0% |
| Mid range | ~5.5%–6.5% |
| Lower range | ~4.0%–5.5% |
Conservative funds (5-year annual return, after fees)
| Performance tier | Annual return range |
|---|---|
| Top quartile | ~4.0%–5.5% |
| Mid range | ~3.0%–4.0% |
| Lower range | ~1.5%–3.0% |
These ranges reflect approximate market conditions to the end of 2025. Returns will differ for different measurement periods. Past performance is not indicative of future performance.
How to Compare Performance Properly: A Step-by-Step Framework
Step 1: Filter to your fund type only
If you’re in a growth fund, compare growth funds only. Ignore balanced and conservative returns.
Step 2: Use the longest available after-fee return
5-year after-fee returns are the minimum meaningful comparison. If 10-year data is available, use it. For providers established more recently, 3 years is the floor — with appropriate caution.
Step 3: Adjust for risk
Two funds can have the same average return with very different volatility profiles. A fund that returned 8% per year with low volatility is better than one that returned 8% with wild swings — for most members. Morningstar’s risk-adjusted ratings (Sharpe ratio) help with this. The Sorted Fund Finder also shows standard deviation.
Step 4: Calculate the after-fee difference vs the cheapest option
If you’re considering paying a higher fee for an active manager, calculate whether the after-fee return justifies the cost.
Example:
| Provider | 5-yr gross return | Fee | 5-yr after-fee return |
|---|---|---|---|
| Simplicity Growth | 8.1% | 0.31% | 7.79% |
| Milford Active Growth | 9.0% | 1.05% + $36 | ~7.9% |
| Fisher Funds Growth | 7.8% | 1.20% + $36 | ~6.5% |
In this illustrative scenario, Milford’s higher gross return almost offsets its higher fees — but only just. Simplicity delivers competitive after-fee returns at materially lower risk (because fees are guaranteed costs; returns are not).
Step 5: Consider consistency, not just average
Check whether the top-performer was top in multiple consecutive years, or only in one or two. Consistent relative performance across different market conditions is meaningful. A single standout year followed by below-average performance is a warning sign.
The Active vs Passive Performance Debate in KiwiSaver
This question divides the NZ KiwiSaver industry:
The passive argument (Simplicity, index funds):
- Index funds consistently capture market returns
- Active managers as a group cannot collectively beat the market — their aggregate performance equals the market minus their higher fees
- Over 10–15 year periods, the majority of active funds underperform equivalent passive funds after fees
- The NZ KiwiSaver market is too small for consistent alpha to be reliably generated
The active argument (Milford, Generate, Fisher Funds):
- NZ and Australian markets are less efficient than global markets, creating more opportunities for skilled managers
- During periods of high volatility (GFC, COVID-19), active managers can reduce downside by holding cash or rotating defensively
- Concentrated conviction portfolios can outperform indices by significant margins in specific periods
The evidence: FMA data shows that, across the full market, most active KiwiSaver funds underperform their passive benchmark after fees over 5–10 year periods. However, a small number of active managers — notably Milford — have delivered above-benchmark after-fee returns consistently enough to attract serious consideration. The question is whether past outperformance is structural (repeatable) or circumstantial.
Recent Performance Context: 2022–2025
Understanding recent returns requires market context:
2022: A difficult year across the board. Rising interest rates globally crushed both equity and bond values simultaneously — unusual, and painful for all fund types. Conservative funds (which hold bonds) suffered nearly as much as growth funds in 2022. Growth funds fell 10%–20% in many cases.
2023: Strong recovery. Global equities (particularly US tech) surged. Growth funds recovered most 2022 losses.
2024: Continued growth, with the RBNZ beginning to cut the OCR from 5.50%. NZ equities lagged global markets.
2025: Mixed — global markets continued rising but with elevated volatility from geopolitical and trade policy uncertainty. NZ equities remained below 2021 peaks.
The 2022–2025 period illustrates why 1-year returns are misleading. A member who panicked in 2022 and switched to cash locked in their losses and missed the 2023–2024 recovery. Those who stayed invested in growth funds were better off over the full period.
For annual return data by provider and fund type, see our KiwiSaver returns 2025 article.
Performance Red Flags: What to Watch Out For
1. Only advertising 1-year returns
Providers that prominently feature 1-year returns on their homepage while burying 5-year data are often doing so because the 1-year number looks better. Always find the long-run figure.
2. Changing benchmark mid-stream
Some managers change their stated benchmark when they underperform it, making historical comparison difficult. Check that the benchmark has been consistent.
3. Awards from media or industry bodies
“KiwiSaver provider of the year” awards are usually based on criteria beyond raw performance (customer service, innovation, etc.) and are influenced by advertising relationships. They are not a reliable performance signal.
4. Gross returns without fee disclosure
If a provider advertises “returns of 9.8%!” without specifying whether that’s gross or after-fee, it’s probably gross. After-fee is what you actually earn.
5. Fund size vs performance
Very large funds (ANZ has $18bn+ in FUM) face challenges generating alpha because they can’t take concentrated positions without moving the market. This is one structural reason large-fund active managers often underperform smaller, more nimble active managers.
How to Check Your Current Fund’s Performance
- Log into your provider’s member portal — most show your personalised return (your actual return based on when you contributed, not just the fund’s overall return)
- Find the fund’s published after-fee returns — look for the “fund updates” or “unit prices” section on your provider’s website (all providers must publish these monthly)
- Compare on Sorted — enter your fund details at sorted.org.nz to compare against equivalent funds
- Check the FMA’s annual report — the most comprehensive standardised comparison, published each year
Frequently Asked Questions
Which KiwiSaver provider has the best performance? Performance rankings change year to year. Over 5-year periods to 2025, Milford and Generate have been among the stronger-performing active managers in the growth category. Simplicity consistently delivers market-rate returns at the lowest fees. The “best” provider depends on your time horizon and whether you value certainty of cost (passive) or potential for outperformance (active). See our best performing KiwiSaver funds for a ranked guide.
Should I switch funds because my fund performed poorly last year? Almost never a good reason to switch on its own. One year’s poor performance in a growth fund is normal during market downturns. Switching to a conservative fund after a downturn locks in losses and typically means missing the recovery. Switching should be driven by your investment time horizon and fund type fit, not by chasing recent returns.
How do I find the after-fee return for my KiwiSaver fund? Your provider’s website must publish quarterly fund updates. Look for the “after fees, after tax” or “net return” figure. Sorted.org.nz also aggregates this data across all providers in a comparable format.
Does past performance predict future KiwiSaver performance? Weakly and inconsistently. Academic evidence and FMA data show that past performance is a poor predictor of future relative performance in managed funds. Exceptions exist — some managers have shown persistence in alpha generation — but it cannot be reliably assumed.
What is a “risk-adjusted return”? It adjusts a fund’s return for the amount of volatility taken to achieve it. A fund that earned 9% with high volatility isn’t necessarily better than one earning 8% with low volatility — the risk-adjusted comparison may favour the lower-returning fund. Morningstar’s Sharpe ratio is the standard measure.
What to Read Next
- Best Performing KiwiSaver Funds NZ 2026 — ranked guide with return tables
- KiwiSaver Returns 2025 NZ — annual return data by provider
- KiwiSaver Fees Comparison — full fee table to pair with performance data
- Cheapest KiwiSaver Fund NZ — the lowest-cost option
- How to Choose a KiwiSaver Fund — selecting the right fund type
- Switching KiwiSaver Providers — when and how to move
- Milford KiwiSaver Review — the standout active manager
- Simplicity KiwiSaver Review — the passive benchmark