OneAnswer KiwiSaver Scheme Australasian Property Fund

• The New Zealand listed property sector had a good quarter (7.3%), comfortably ahead of the local NZX 50 Index (2.7%). Globally, the sector lagged behind Australia’s listed property index (13.7%) but outperformed the global property index, which rose 1.5% in New Zealand dollar terms. Reflecting the solid performance, nine of the 10 companies in the index finished the quarter with gains.
• During the quarter, the Reserve Bank of New Zealand (RBNZ) cut the Official Cash Rate (OCR) twice, bringing it down to 3.25%. In a surprising move, one committee member voted to keep rates unchanged at the May meeting, prompting a formal vote that resulted in a 5-1 decision to cut the OCR. The RBNZ updated its forecasts for various indicators, including a downward revision to its Q2 GDP growth rate to 0.3%. It also expects the OCR to be around 3% by the end of 2025.
• Meanwhile, strong Q1 GDP data showed the economy grew by 0.8%, exceeding most forecasts. Growth was driven by robust performances in manufacturing, business services, and mining, while the arts and recreation sector saw a decline.
• Elsewhere, inflation concerns resurfaced over the quarter, largely due to rising food prices, which increased by 0.8% in April and 0.5% in May. This took the annual pace of food price inflation to 4.4%.
• A key contributor to fund performance was overweight positions in retirement sector company Oceania Healthcare and Investore Property. Shares in Oceania rose by nearly 10% over the quarter, largely due to a reversal from oversold levels. The company announced it had identified cost savings heading into FY26 – encouraging news for a sector that has faced debt challenges in recent years.
• Meanwhile, Investore shares rose by 13.5% after the company reported a FY25 net profit of $38.4 million, up from a net loss of $67.1 million in FY24. Its portfolio value increased 1.3% to $1 billion over the prior 12 months.
• Offsetting the fund’s positive performance was its overweight position in Ryman Healthcare, whose share price fell by nearly 20% during the quarter. The company continued to face challenges following its $1 billion capital raise earlier this year. Further pressure came from newly announced impairments and a revised sales outlook that fell short of expectations.

The fund invests mainly in New Zealand and Australian listed property assets. Investments may include:

• Companies, funds or trusts that invest in property and are listed or intend to list
• Cash and cash equivalents.

This chart shows the mix of assets that the fund generally intends to invest in – 100% listed property.

See the fund's actual investment mix on page 3 of the fund update.