Kiwisaver assets on the Morningstar database grew to $29.31 billion by September 30, a phenomenal growth rate, Morningstar research analyst Elliot Smith said.
ANZ and ASB remained the dominant players at September 30 with 44.1% of KiwiSaver assets between them. AMP retained third spot ahead of Westpac, and Fisher Funds remained in fifth spot.
The industry remained highly concentrated with the six largest KiwiSaver providers accounting for 86.1% of assets on the data base, he said in a report released last week.
In his market review, Mr Smith said volatility set in to global equity markets during the September quarter following an extended period of calm in recent years.
The turbulence seemed to stem from concerns about slowing growth and financial stresses in China.
Global investors watched with intense scrutiny as senior Chinese officials tried to support rapidly falling stock markets, rebalance the slowing economy to a consumption-driven model and manage the overvalued currency pegged to the US dollar.
''Given the strong run in most major equity markets over the past few years, valuations were particularly susceptible to uncertainty or bad news. Both developed and emerging equity markets got punished as investors veered to the safety of `risk free' assets such as US, German and Japanese sovereign bonds.''
Global markets fell 3.09% in aggregate New Zealand dollar terms during the quarter. With that, the US S&P 500 fell 1.09%, the UK FTSE fell 4.41%, the Euro Stoxx slipped 4.09% and the Japanese Nikkei slumped 7.2%.
Mr Smith said the damage was worse for NZ dollar-hedged investments as the dollar fell 5.4%, 6.7%, 3.12% and 8.31% against the US dollar, British pound, euro and Japanese yen respectively. Emerging markets did not fare well.
In aggregate, they gave up 13.1% in New Zealand dollar terms.
Closer to home, there was no reprieve for the Australian equity market as resource stocks were sold off particularly heavily amid concerns of easing demand from China.
The S&P 200 lost 6.6% in Australian dollar terms while the New Zealand dollar strengthened against the Australia dollar, rubbing salt into the wound if exposure was left unhedged, Mr Smith said.
The NZX50 was relatively resilient and ''only'' fell 2.33%, probably a result of a satisfactory earnings season with no major negative surprises with the yield on offer helping limit capital loss.
Uncertainty surrounding the health of the US economy, and how the Federal Reserve perceived it, also heightened during the quarter, Mr Smith said.
Many had expected Fed chairwoman Janet Yellen to raise interest rates in September as the stated US economic data targets for tightening had been reached.
However, rates were kept on hold, and Dr Yellen stated subdued inflation and recent global economic and financial developments as the catalysts for no movement.
The heightened global uncertainty meant government bonds from credit worthy countries were in demand. Global fixed interest markets were up 2.08%, as measured by the Barclays Global Aggregate NZD Hedged Index.
The Reserve Bank of New Zealand stepped up monetary easing with two anticipated 0.25% drops in the official cash rate in July and September. The central bank pointed to the rapidly slowing dairy sector and low inflation as the impetus.
That was positive for local bond investors as the NZX New Zealand composite index returned 2.2%.
The local listed property market came through the market turbulence largely unscathed as investors took comfort in its relatively defensive nature and, potentially, the Fed's decision to wait on rate rises provided some comfort, Mr Smith said.
The NZX property index gave up 0.2%. Global listed property held up well, relative to broader global equities but after the effects of currency and hedging.
