How has the fund performed?
Performance as at 31 March 2026
Rate | |
|---|---|
3 months | -0.61% |
1 year | 3.46% |
3 years (p.a.) | 4.44% |
5 years (p.a.) | 0.99% |
10 years (p.a.) | 2.24% |
Since launch (p.a.) | 3.93% |
Performance is after the annual fund charge and before tax. KiwiSaver rates, fees and agreements.
What happened this quarter (three months to 31 March 2026)
New Zealand bonds lost ground over the quarter, with both government bonds and investment-grade corporate bonds both declining. Local bond markets were heavily influenced by offshore developments.
The escalation of conflict in the Middle East late in the quarter led to a sharp rise in oil prices, reigniting global inflation fears and prompting investors to reassess the outlook for interest rates. Rather than benefiting from a ‘flight to safety’, bond markets sold off as higher energy prices raised the risk that inflation could prove more persistent. Global bond yields moved higher as markets scaled back expectations for interest rate cuts, with several regions even pricing in the possibility of further tightening – including here in New Zealand.
New Zealand bonds broadly followed these offshore trends. While yields initially moved lower, this reversed as global yields rose and inflation concerns resurfaced. The yield on the New Zealand 10‑year government bond ended the quarter around 32 basis points higher at 4.72%, which weighed on bond prices. When bond yields rise, their prices go down.
Domestic conditions also played a role. Economic growth in New Zealand remained fragile, but inflation proved more resilient than expected. Annual inflation rose to 3.1%, above the Reserve Bank of New Zealand’s (RBNZ) target range, reinforcing concerns that inflation pressures would likely persist. That said, the RBNZ kept the Official Cash Rate unchanged throughout the quarter.
Australian bond markets experienced similar pressures, with inflation concerns prompting the Reserve Bank of Australian to raise interest rates twice during the quarter, leading to falling bond prices. Meanwhile, investment-grade corporate bonds performed broadly in line with government bonds. Corporate bond markets were stable, and there was little change in credit spreads over the quarter.
For more information on investment markets
What does the fund invest in?
The fund invests mainly in New Zealand fixed interest assets. Investments may include:
- Fixed interest assets in New Zealand dollars, or issued by New Zealand located or incorporated entities and hedged back to New Zealand dollars
- Cash and cash equivalents.
This chart show the mix of assets that the fund generally intends to invest in – 100% fixed interest.
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 ANZ KiwiSaver Scheme, the OneAnswer KiwiSaver Scheme and the ANZ Default KiwiSaver Scheme (no longer a default scheme and closed to new members). For the scheme guides and product disclosure statements see KiwiSaver documents and forms or ask at any ANZ branch.
This material is for information purposes only. Please talk to us if you need financial advice about your situation and goals or about our products and services. See our Financial advice provider disclosure statement (PDF 39.9KB).
Past performance does not indicate future performance. The actual performance any given investor realises will depend on many things, is not guaranteed and may be negative as well as positive.