KiwiSaver not too big for sharemarket (yet)

Morningstar's Sector Wrap, which shows Australian-invested funds didn't have a great year, also shows that, while it is growing fast, KiwiSaver is far from being big enough to cause pricing distortions on the NZX.

"The KiwiSaver retirement savings scheme is the only area of the New Zealand investments industry consistently attracting net inflows," the report says.

"Several commentators have suggested that the weight of money flowing into KiwiSaver options could put further pressure on the already constrained New Zealand sharemarket, driving up share valuations."

In the four years that the KiwiSaver scheme has been in operation, over $1 billion has been allocated to the New Zealand sharemarket, according to the report.