OneAnswer KiwiSaver Scheme Conservative Balanced Fund
Fund report as at 30 September 2024
How has the fund performed?
Performance as at 30 September 2024
Rate | |
|---|---|
3 months | 4.30% |
1 year | 12.65% |
3 years (p.a.) | 1.52% |
5 years (p.a.) | 3.39% |
10 years (p.a.) | 4.98% |
Since launch (p.a.) | 5.41% |
Performance is after the annual fund charge and before tax. Legal information and disclaimers.
What happened this quarter (three months to 30 September 2024)
- Global government bond markets delivered strong gains over the quarter, with most developed central banks cutting interest rates as inflation trended toward target rates. US bonds were some of the better performing after the US Federal Reserve cut interest rates by a surprising 50 basis points.
- New Zealand bond markets also had a strong quarter, helped in part by the 25-basis-point cut in the Official Cash Rate by the Reserve Bank of New Zealand. The cut came as weak economic data showed the local economy continues to struggle, with a 1.2% decline in Q2 retail sales and unemployment rising to 4.6% – the highest level in more than three years. Elsewhere, the economy contracted by 0.2% in the three months to June 2024, raising the probability that the economy is in a recession.
- Share markets benefited from interest rate cuts and a growing consensus the US economy was headed for a soft landing; that is where inflation moderates to target levels without a significant decline in growth and the labour market.
- In the US, the S&P 500 rose 5.9%, while the NASDAQ 100 was up 2.8%. Meanwhile European shares were higher, but gains were more muted. And in New Zealand, the NZX 50 rose 6%. The interest-rate-sensitive market tends to perform well when bond yields decline.
- Our underweight position to cash benefited fund performance over the quarter. Cash is a defensive asset and tends to outperform in times of market volatility and equity sell-offs, so with shares and bonds turning in good returns, cash underperformed.
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How the fund has performed over time
The fund aims to achieve (after the fund charge and before tax) over the long term low to moderate returns, allowing for small to moderate ups and downs in value.
The graph below shows the value of a $1,000 investment made at the time the fund launched.
Line graph text description
The x-axis (horizontal) shows annual dates from September 2007 to September 2024. The y-axis (vertical) shows values from $0 to $3,000 in $500 increments. The line is labelled 'Conservative Balanced Fund'. The line starts at a value of $1,000 for September 2007. The trend is downwards until a low of approximately $900 between September 2008 and September 2009. The trend is then upwards, other than small dips between September 2018 and September 2019, and between September 2019 and September 2020. The trend then continues mostly upwards until a sustained decline over 2022. Since then, the value has gradually recovered, finishing at $2,449.31.
Performance is after the annual fund charge and before tax. Legal information and disclaimers.
What does the fund invest in?
The fund invests mainly in income assets (cash and cash equivalents and fixed interest), with some exposure to growth assets (equities, listed property and listed infrastructure). The fund may also invest in alternative assets.
This chart shows the mix of assets that the fund generally intends to invest in.
Pie graph text description
Income assets:
- 15% Cash and cash equivalents
- 50% Fixed interest
Growth assets:
- 4.5% Listed property
- 29% Equities
- 1.5% Other (listed infrastructure)
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 OneAnswer KiwiSaver Scheme. Important information is available under terms and conditions. Download the guide and product disclosure statement.
This material is for information purposes only. We recommend seeking financial advice about your situation and goals. Talk to your financial adviser, or call us on 0800 736 034 and we can put you in contact with one.