OneAnswer KiwiSaver Scheme Australasian Share Fund

• New Zealand’s equity market posted modest gains, with the NZX 50 Index up 2.7%. Sentiment improved as signs of economic recovery emerged and interest rates stabilised. The Reserve Bank of New Zealand (RBNZ) lowered the Official Cash Rate to 3.75% during the quarter, supporting interest-sensitive sectors and easing financial conditions.
• GDP grew by 0.8% in Q1 2025 – marking a second consecutive quarter of expansion and confirming the economy’s emergence from recession. Growth was driven by strength in primary industries, manufacturing, and business services. The unemployment rate edged up to 5.1%, reflecting labour market adjustments, while annual inflation held steady at 2.2%, within the RBNZ’s target range.
• Across the Tasman, Australia’s ASX 200 Index rose 9.5% to a record high, lifted by an interest rate cut and the prospect of more to come. CPI data showed softer-than-expected inflation, with prices rising 2.1% in May after a 2.4% increase in April.
• A major contributor to the fund’s relative performance was Tourism Holdings, New Zealand’s largest campervan rental company. Its shares surged 28%, driven by a takeover proposal from a consortium including private equity firm BGH Capital. The offer, priced at $2.30 per share, represented a premium to its pre-announcement price, boosting investor confidence.
• Additional contributors included seafood company Sanford, which benefitted from export demand and favourable pricing, and infrastructure firm Vector, whose shares rose nearly 10% on stable cash flows and defensive attributes.
• Also helpful were underweight positions in companies with declining share prices. Auckland International Airport fell 5%, likely due to domestic travel concerns, while Vulcan Steel dropped 29% amid weaker profits, lower sales volumes, and construction sector headwinds.
• Offsetting these gains were holdings in Ryman Healthcare, Serko and Pacific Edge. Ryman shares fell almost 20%, still facing headwinds following its $1 billion capital raise. Serko declined 19%, as its full-year result disappointed investors. Pacific Edge dropped 26% after US Medicare excluded funding for its CX bladder test, despite a final appeal attempt.

The fund invests mainly in New Zealand and Australian equities. Investments may include:

• Equities in companies that are listed or intend to list on the New Zealand or Australian stock exchanges
• Cash and cash equivalents.

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

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