Nearly $5 billion wiped off value of KiwiSaver assets in just three months

New Zealanders' savings have taken a hit.

The total value of New Zealanders' KiwiSaver assets fell $4.95 billion in the three months to June 30, bringing it down to $82.77b, Morningstar figures show.

And the value is nearly $10b down on the $91.67 the superannuation scheme hit in December last year before markets turned down.

Tim Murphy, director of manager selection Asia-Pacific with Morningstar, said world markets had been hit this year.

"During the second quarter of this year, global GDP contracted, due to slowdowns in
China and Russia, while US household spending fell short of expectations.

"Several shocks have rocked a global economy already weakened by the pandemic: higher than expected inflation around the world, particularly in the United States and
major European economies, causing financial conditions to tighten; a worse than expected slowdown in China, due to the Covid-19 outbreaks and lockdowns, and further negative fallout from the war in Ukraine."

New Zealand's benchmark index the S&P/NZX 50 fell 10.2 per cent over the quarter with large companies like Fletcher Building and Fisher and Paykel Healthcare falling sharply, down 21 per cent and 16.8 per cent respectively.

Australia's stock market also performed poorly, down 9.7 per cent while the MSCI World Index was down 6.2 per cent.

It was also bad news on the bond front with international fixed interest delivering large losses due to bond yields climbing.

The average return for conservative KiwiSaver funds was -4.2 per cent while balanced funds averaged -7.1 per cent and growth funds were down 9 per cent.

Aggressive funds took the biggest hit, falling on average 10.1 per cent over the quarter.

Murphy said it was most appropriate to look at KiwiSaver fund performance over the longer term.

Over 10 years the aggressive fund category has averaged an annual return of 9.3 per cent followed by growth at 9 per cent, balanced at 7.3 per cent and growth at 4.5 per cent.

ANZ remains the largest provider with $17.2b but it continues to lose market share falling to 20.7 per cent down from 21 per cent in December 2021 and 24.1 per cent in December 2019.

ASB is the second largest with $13.3b and a 16 per cent market share - slightly up on the 15.8 per cent it had in December 2021 but well down on its 18.4 per cent share in December 2019.

Westpac is the third largest provider with $8.8b followed by Fisher Funds with $6.46b.