Fiona Mackenzie on the year that was, and what to expect in 2024

This video is a message from Fiona Mackenzie, Managing Director of Funds Management, ANZ Investments New Zealand

Fiona: Nau mai, Haere mai, welcome to our first investor update for 2024.

I’m pleased to share with you a quick recap on the year that was 2023 and what we’re excited about in the year ahead.

Firstly, I’d like to acknowledge that it was a challenging time for investment markets in 2023 and many investors experienced both ups and downs in their balances. There was a lot of uncertainty in markets with the continuation of the Russia - Ukraine conflict and the onset of the Israel - Hamas war in October. 2023 saw continued inflation across the globe, and of course, it was an election year here in Aotearoa. The ongoing cost of living challenges also meant many Kiwis continued to struggle to meet their rising day to day costs.

Despite this volatility, investment markets ended on a positive note with global shares comfortably higher, and bonds having a strong finish to the year.  We’re really pleased to have delivered investment gains for our diversified funds in 2023.

2023 also saw a number of developments at ANZ Investments. We reduced fees across our Balanced, Balanced Growth and Growth funds as part of our commitment to improving our customers’ investment outcomes. We’re really excited, that since the inception of KiwiSaver in 2007, we’ve reduced fees by more than a third for the ANZ KiwiSaver Scheme. 

In August we added a new High Growth Fund to our KiwiSaver schemes and Investment Funds, giving our investors even more choice to help meet their goals. This fund is designed for people that have a higher risk tolerance or those that have an investment timeframe of nine years or more.

We also made a raft of enhancements to how our KiwiSaver members can access information about their KiwiSaver account in ANZ goMoney and Internet Banking, including being able to switch which fund you’re invested in and change your KiwiSaver contribution rate in goMoney. I hope you’re finding these changes are making it even easier to manage your investments.

In December we hit a really exciting milestone. We’ve now helped more than 100,000 customers buy their first home, through a KiwiSaver First Home Withdrawal. Over the past thirteen years our KiwiSaver members have collectively made $2.45 billion of first-home withdrawals from their ANZ-managed KiwiSaver scheme. It’s fantastic seeing so many of our members use this feature of KiwiSaver to achieve their home buying ambitions. We also know from our research that there is a strong correlation between home ownership and higher levels of financial wellbeing.

We’re proud to have been named a Responsible Investment Leader in the Responsible Investment Association of Australasia’s 2023 Benchmark Report. This means that we’re now placed in the top 20% of responsible investors in New Zealand, as assessed by RIAA, recognising our commitment to responsible investing.

So what have we got to look forward to in 2024?

There’s still likely to be uncertainty in investment markets this year, however inflation, while still elevated particularly in New Zealand, is trending lower globally. Our investment view is that interest rates have likely peaked so this may provide some much-needed relief to borrowers, mortgage holders and investors alike.

In March we’ll be welcoming our new Chief Investment Officer, George Crosby to our ANZ Investments team. We’ll introduce George in our next Investor Update once he’s got his feet under the desk.

We’ll continue to innovate around how our members can access and manage their investments, so expect to see further enhancements in ANZ goMoney and Internet Banking this year. 

As we head into 2024, it’s worth remembering that your investments are being looked after by a team with decades of experience both in New Zealand and around the world. As New Zealand’s largest KiwiSaver provider, you’re in good company with over 650,000 other Kiwis placing their trust in us to manage their investments responsibly.

Ngā mihi nui ki a koe, thank you for choosing to invest with us. All of us here at ANZ Investments look forward helping you further progressing your investment goals in 2024.

Text on screen: Important information: This information is issued by ANZ New Zealand Investments Limited (ANZ Investments). It is for information purposes only, is not advice and is subject to change. In good faith, we’ve used reliable sources for this information, but we don’t promise it’s complete or suits you. To the extent the law allows we don’t accept responsibility for loss or damage if you rely on or use this information. Past performance is not indicative of future performance. We don’t guarantee performance, which depends on many things, and could be positive or negative.