Where to for advisers, report asks

The report, its first NZ Funds Management Industry Update,  was produced in conjunction with Morningstar and contributed to by ANZ, Challenger, the Commission for Financial Capability and NZX.

John Kensington, head of KPMG New Zealand Financial Services, said the industry had changed a lot over the past decade and KiwiSaver had been a game-changer.

He said as KiwiSaver grew, so too would the spin-off effects for the funds management industry. The New Zealand public would become more financially literate and better educated and there would be a steady development of more of an "investment culture", he said.

Kensington said at first the growth of KiwiSaver could channel funds away from other investments that investors would previously have been interested in. “People don’t have an endless supply of funds have they have to put money into KiwiSaver.”