The Smiths Capital Flows Report
Inaugural issue · May 2026
A net $305M moved out of bank-owned KiwiSaver schemes last quarter.
The first quarter on the new July-2025 settings shows a consistent pattern in the FMA disclosure data: members reviewing their KiwiSaver after the halved government contribution are leaving the four large bank-owned schemes at a faster pace than at any point since the default-provider rotation. This report sets out the numbers and what the behaviour signals, without telling you what to do with it.
Quarter at a glance
KiwiSaver assets (total)
$113.7b
Up 4.7% from prior quarter
Net flows into KiwiSaver
+$2.10b
Contributions $4.3b · Withdrawals $2.2b
Net out of bank schemes
−$305M
ANZ, ASB, Westpac and BNZ combined
Net into passive schemes
+$271M
Simplicity + Kernel combined
KiwiSaver members moved a net $305 million out of the four large bank-owned schemes in the quarter to 31 March 2026, while passive-only providers (Simplicity and Kernel) together attracted net +$271M. The pattern across the FMA quarterly data is consistent: members are reviewing their KiwiSaver in numbers we have not seen since the default-provider rotation.
ANZ recorded the largest single absolute outflow at $94M. Westpac, ASB, and BNZ together accounted for a further $399M of the net bank-segment outflow.
Returns are not the obvious driver, none of the bank schemes had a notably poor quarter on the performance side. Member behaviour appears to be leading the data. Sorted’s Smart Investor saw record traffic in February following the IRD’s communications about the new contribution settings, and adviser-channel switch volumes are up materially year-on-year.
Where the money went
Within the receiving schemes, Simplicity took the largest share, net +$187M, taking total FUM through the $5.9b mark for the first time. Kernel led the panel on percentage growth: a 7.6% quarter-on-quarter FUM increase from a smaller base, predominantly from inflows rather than market gains.
Active managers had a mixed quarter. Milford recorded a net inflow of +$62M on the back of strong 5-year numbers; Fisher Funds, Generate and Mercer were each modestly net negative. The picture suggests the member who actively chose to move this quarter was cost-sensitive, active managers without a strong recent track record gave up ground to lower-cost alternatives.
What members are weighing
For members still in a bank scheme by default rather than by active choice, the data is at minimum a prompt to review whether their current setting still fits, without any implication that switching is automatically the right call. For members already in their chosen scheme, the data is largely descriptive: members like you are reviewing in numbers we don’t typically see, and doing it on the basis of fees and long-term return rather than short-term performance.
For Smiths, the five schemes on our advice panel collectively saw +$333M of net inflow this quarter, broadly tracking the pattern across adviser-distributed schemes nationally.
We publish this report every quarter, six to eight weeks after the FMA disclosure release. Methodology and the underlying spreadsheet are linked at the foot of every issue.
, Smiths team
The leaderboard
Net flows by provider, Q1 2026
| Provider | Type | Net flow |
|---|---|---|
| Simplicity | passive | +$187M |
| Kernel | passive | +$84M |
| Milford | active | +$62M |
| Pathfinder | ethical | +$19M |
| Booster | active | +$14M |
| Generate | boutique | −$8M |
| Mercer | active | −$22M |
| Fisher Funds | active | −$41M |
| BNZ | bank | −$47M |
| ASB | bank | −$78M |
| Westpac | bank | −$86M |
| ANZ | bank | −$94M |
Source. Calculated from FMA Quarterly KiwiSaver Disclosure (Q1 2026, filed April 2026), provider FUM tables, and Smiths analysis. Net flow = total contributions in − total withdrawals out − transfers out + transfers in. Investment gains/losses excluded. Methodology spreadsheet available on request.
How we keep the lights on
Plain English. The same as our statutory FAP disclosure.
Who advises: Craig Smith Business Services Limited (FSP712931), trading as Smiths Insurance & KiwiSaver, holds a Class 2 licence issued by the Financial Markets Authority. Our principal Craig Smith provides the KiwiSaver advice.
Scope of advice: We give personal financial advice on a defined panel of KiwiSaver schemes. We do not provide personal advice on schemes outside that panel. The website lists the current panel; if you are with another scheme, we can talk you through whether moving to one of ours would suit your situation, but we cannot recommend you stay with or move into a scheme we do not advise on.
How we get paid: Smiths does not charge you fees for advice. When you complete a KiwiSaver with one of our panel schemes, the scheme provider pays us an upfront fee (where applicable) plus an annual trail commission calculated on your balance. Trail rates vary by provider in the range 0.25 % – 0.5 %. We do not adjust our advice based on which scheme pays the higher trail; our advice process is documented and consistently applied.
Past performance is not indicative of future returns. Returns shown on this site are historical (sourced from the FMA Quarterly KiwiSaver Disclosure, Sorted Smart Investor and provider PDS), net of fund fees and at a 28 % PIR unless otherwise stated. Information on this site is general in nature and is not personal financial advice. Personal advice considers your goals, situation and risk tolerance. for that, please contact us.
Full statutory FAP disclosure is at smiths.net.nz/disclosure. The list of advised schemes on the public disclosure document is in the process of being refreshed to reflect recent panel additions; this website lists the current panel, and our advice is given on those schemes only.
Director, Smiths Insurance & KiwiSaver
Craig Smith Business Services Ltd · FSP712931 · FMA Class 2
Reviewing your own setup this quarter?
Run a free Health Check, or read about the schemes Smiths advises on. We’re happy to help whether you decide to move or stay.