Market Update. Confidence Returns as Markets Rebound.

While the first quarter of 2026 reminded investors that short-term volatility is part of the journey, the more recent story has been far more encouraging. Global markets have rebounded strongly, and KiwiSaver balances have followed suit, with many investors now seeing solid gains again. We are working with providers who have delivered over 10% average returns over 10 years.* 

This is a helpful reminder of an important principle: markets can move quickly in both directions, and staying invested through the ups and downs is what allows long-term returns to build.

A Resilient and Growing KiwiSaver SystemKiwiSaver continues to play an increasingly important role in New Zealanders’ financial futures. Even through the temporary dip earlier in the year, the system remained stable, with ongoing contributions from members, employers, and the Government continuing to support long-term growth.

As markets have recovered, so too have KiwiSaver balances, reinforcing the strength of a system built on diversification, regular investing, and a long-term focus. For KiwiSaver investors, this has translated into a meaningful rebound, particularly in balanced, growth, and aggressive funds.

If you looked at your KiwiSaver balance at the end of March, it may have felt like a setback. But those declines were short-lived. Investors who stayed the course have now benefited from the recovery, highlighting why reacting to short-term movements can be counterproductive.

The key drivers of long-term success remain unchanged:•    Regular contributions continue to build your balance over time.•    Diversification helps smooth out periods of volatility.•    Growth assets, while more variable in the short term, continue to be the main source of long-term returns.

Long-Term Returns Lead the WayEven with earlier volatility, long-term KiwiSaver returns are strong across all fund types, particularly for those in growth-oriented options. Over time, markets have consistently recovered from short-term shocks and continued to trend upward.

For investors with a longer time horizon, these periods of volatility are a normal part of investing and often a necessary trade-off for higher long-term returns. This is exactly why we focus so much on matching your fund choice to your time horizon and risk tolerance. Short-term volatility may come and go, but the underlying case for staying invested remains strong. The market has shown it can absorb shocks, recover, and continue compounding over time — and that is exactly why staying disciplined, keeping contributions going, and choosing the right risk level for your goals remains the best long term strategy.

*Past performance is not necessarily an indication of future performance.