How has the fund performed?
Performance as at 30 June 2026
Rate | |
|---|---|
3 months | 2.98% |
1 year | 5.11% |
3 years (p.a.) | 5.66% |
5 years (p.a.) | 1.58% |
10 years (p.a.) | 2.33% |
Since launch (p.a.) | 4.04% |
Performance is after the annual fund charge and before tax. KiwiSaver rates, fees and agreements.
What happened this quarter (three months to 30 June 2026)
New Zealand bonds delivered positive returns over the quarter, with both government bonds and investment-grade corporate bonds benefiting from a decline in yields. After a volatile start to the period, easing inflation concerns and improving market sentiment provided support for fixed interest markets. Local bond markets were influenced by both offshore developments and domestic economic conditions.
International bond markets initially came under pressure as oil prices surged and investors worried that inflation could remain elevated for longer. This prompted markets to reassess the outlook for interest rates and pushed bond yields higher across many major economies. However, conditions improved as tensions in the Middle East eased and oil prices retreated sharply, helping to reduce inflation concerns and supporting a recovery in bond markets.
New Zealand bonds broadly followed these global trends. While the Reserve Bank of New Zealand maintained the Official Cash Rate unchanged at 2.25% throughout the quarter, evidence that domestic pricing pressures remained contained helped improve investor confidence. Economic growth remained subdued and consumer confidence was weak, although business confidence improved noticeably towards quarter end.
Against this backdrop, bond markets performed well. The yield on the New Zealand 10-year government bond fell by 36 basis points over the quarter to 4.36%, supporting positive returns across the asset class. When bond yields fall, bond prices rise. Australian bond markets also generated positive returns, although inflation remained a concern and prompted the Reserve Bank of Australia to raise interest rates during the quarter.
Fund activity focused on taking advantage of opportunities across the New Zealand fixed interest market, particularly in new bond issuance. Market volatility early in the quarter provided opportunities to add high-quality exposures at attractive yield levels.
A key theme during the period was the return of supranational issuers to the New Zealand market after being largely absent for several years. These highly rated issuers provided an attractive alternative to government bonds while maintaining a strong credit profile. Towards the end of the quarter, the fund also added New Zealand inflation-linked government bonds, taking advantage of attractive real yields relative to conventional government bonds. Bond sales during the period were primarily undertaken to fund new investments and manage overall portfolio positioning.
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.