Performance as at 30 September 2020
Performance is after the annual fund charge, and before tax and membership fees (if applicable). For more information, see legal information and disclaimers.
What happened this quarter (3 months to 30 September 2020)
- For the most part, international share markets finished the quarter higher, on optimism that the pandemic – at least from an economic standpoint – is behind us. In the US, tech stocks had another strong quarter, with the NASDAQ 100 gaining more than 10%. Meanwhile, in New Zealand, the NZX 50 underperformed slightly, but still recorded a gain of 2.6%.
- Global bond markets had a relatively subdued quarter, with interest rates in most parts of the world hovering at or near all-time lows.
- After aggressively cutting rates and/or increasing quantitative easing earlier this year, central banks held this accommodative stance throughout the quarter, reaffirming that interest rates would remain low for a prolonged period. In fact, in September, the US Federal Reserve said it expects the fed funds rate to remain at zero through to 2023.
- It was a different story in New Zealand, with bond markets recording solid gains after the Reserve Bank of New Zealand increased its bond-buying programme to $100 billion and noted that a negative OCR is a policy tool it could implement – commentary that saw interest rates decline sharply; the 10-year government bond yield finished the quarter down 43 basis points.
- Given the mild improvement in economic sentiment, we hold an overweight position in international equities and Australian equities. We've also added a small overweight to domestic property.
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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 a moderate yearly return allowing for moderate movements of value up and down including occasional negative yearly returns.
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 and membership fees (if applicable). For more information, see Legal information and disclaimers.