The total value of KiwiSaver slipped by $1.3 billion to $96.2b as most mixed funds booked negative returns in the September quarter.
Morningstar research showed most multi-sector KiwiSaver funds made returns of between -1 per cent in the conservative category and -4 per cent in aggressive, compared with positive returns across the board and as high as 7 per cent in the previous quarter.
That could mean slightly less to be earned in fees for providers, with their projected total annual fees falling 2 per cent to $761 million.
The worst-performing fund remained Kernel’s global clean energy fund, down 18 per cent in the quarter, while the best performer was the InvestNow Smartshares growth fund, up almost 3 per cent.
“Equity markets sold off in the September quarter as prospects for interest rates set in, which also saw a sharp repricing in bond markets.” Morningstar’s survey report said.