Reserve Bank of New Zealand figures on the managed funds sector show KiwiSaver accounts have shot up to more than NZ$11.2 billion in value, a 42% increase from 2010.
At the end of the December quarter for 2011, KiwiSavers funds under management totalled NZ$11.293. "Other" superannuations funds stood at NZ$18.5 billion.
Unit trusts and other non-retirement managed funds made up an additional $31 billion.
A breakdown of the KiwiSaver funds shows that 53% of New Zealander's retirement savings are invested in assets held outside the country with the remainder domiciled here.
Looking deeper into the numbers, approximately 60% of the total exposure within Kiwisaver Funds is to fixed income assets which includes; deposits, Government stock, corporate bonds and offshore bonds. This exposure to traditionally lower risk assets is a reflection of the general global economic environment following the fall out from the Global Financial Crisis (GFC).
The next largest exposure within Kiwisaver funds is to global equities (approximately 27%).
It is expected, a large proportion of the exposure to fixed income assets is within the default fund providers who have more conservative mandates.
Interestingly, the default fund providers on the whole have out-performed a majority of the other Kiwisaver options available.