How has the fund performed?
Performance as at 31 March 2026
Rate | |
|---|---|
3 months | -1.67% |
1 year | 7.74% |
3 years (p.a.) | 6.51% |
5 years (p.a.) | 3.47% |
10 years (p.a.) | 5.45% |
Since launch (p.a.) | 5.93% |
Performance is after the annual fund charge and before tax. KiwiSaver rates, fees and agreements.
What happened this quarter (three months to 31 March 2026)
The fund has a meaningful allocation to share markets, which were volatile over the period. Early in the quarter, optimism supported markets, with several overseas share markets reaching record highs. However, conditions weakened later in the period as global uncertainty increased. Rising geopolitical tensions, including conflict involving the US, Israel and Iran, unsettled investor confidence and contributed to a pull‑back in share prices.
International share markets generally declined over the quarter as investors became more cautious. New Zealand shares also fell, largely reflecting developments offshore. Company earnings results were mixed, with some businesses performing well, while others faced softer demand and higher costs.
The fund also holds a significant allocation to bonds. Bond markets had a difficult quarter and did not provide their usual stability. Higher oil prices raised concerns that inflation could increase again, leading investors to reassess the outlook for interest rates. As a result, bond prices fell across many markets.
New Zealand bonds broadly followed overseas trends. While economic growth locally remains weak, inflation has stayed higher than expected. This led the Reserve Bank of New Zealand to signal greater concern about inflation, increasing expectations that interest rates may need to remain higher or rise further. This weighed on local bond returns.
Following a strong start to the year, the weakness across both share and bond markets resulted in negative returns over the quarter. One factor holding back performance was weaker returns from one of our international bond fund managers, due to exposure to UK bonds, which underperformed. This was partly offset by good company selection within our international shares, property and listed infrastructure investments.
Looking ahead, markets are likely to remain unsettled while global uncertainty persists. However, periods like this can also create opportunities. We currently favour US shares over European shares, as the US economy and company earnings appear more resilient, while European markets face greater exposure to energy‑related pressures. We also see improving value in high‑quality US government bonds following their recent sell‑off.
Overall, we remain focused on maintaining a well‑diversified portfolio that balances growth and risk. While short‑term market movements can be uncomfortable, the fund is designed to support investors through changing conditions and deliver growth over the long term.
For more information on investment markets
How the fund has performed over time
The fund aims to achieve (after the fund charge and before tax) over the long term moderate returns, allowing for moderate ups and downs in value.
The graph below shows the value of a $1,000 investment made at the time the fund launched.
Performance is after the annual fund charge and before tax. KiwiSaver rates, fees and agreements.
What does the fund invest in?
The fund invests in similar amounts of income assets (cash and cash equivalents and fixed interest) and growth assets (Australasian equities and International equities). The fund may also invest in alternative assets.
This graph shows the mix of assets that the fund generally intends to invest in.
See the fund's actual investment mix on page 3 of the fund update.
Important information
ANZ New Zealand Investments Limited (‘ANZ Investments’) is the issuer and manager of the ANZ KiwiSaver Scheme, the OneAnswer KiwiSaver Scheme and the ANZ Default KiwiSaver Scheme (no longer a default scheme and closed to new members). For the scheme guides and product disclosure statements see KiwiSaver documents and forms or ask at any ANZ branch.
This material is for information purposes only. Please talk to us if you need financial advice about your situation and goals or about our products and services. See our Financial advice provider disclosure statement (PDF 39.9KB).
Past performance does not indicate future performance. The actual performance any given investor realises will depend on many things, is not guaranteed and may be negative as well as positive.