ANZ Default KiwiSaver Scheme Cash Fund

Fund report as at 30 June 2024

How has the fund performed?

Performance as at 30 June 2024

Rate

3 months

1.45%

1 year

5.94%

3 years (p.a.)

3.61%

5 years (p.a.)

2.61%

10 years (p.a.)

2.63%

Since launch (p.a.)

3.16%


Performance is after the annual fund charge and before tax. Rates, fees and agreements.


What happened this quarter (three months to 30 June 2024)

  • With central banks holding interest rates at multi-year highs and bond yields elevated, cash continued to deliver positive and steady returns over the quarter.
  • The Cash Fund is a low-risk fund that aims to preserve capital for investors while offering low volatility in returns. With interest rates hovering near decade-highs, the fund continues to deliver stable returns, as seen by its one-year return of 5.9%.
  • Data continued to highlight the challenging economic backdrop facing New Zealand. The unemployment rate rose to 4.3% – the highest level since mid-2021 – and business and consumer sentiment surveys remained downbeat. Retail spending data suggested New Zealanders are tightening the screws as the cost-of-living crisis continued, and while GDP (Gross Domestic Product) figures showed that the economy came out of a recession, on a per capita basis it continued to contract at a material pace.
  • Meanwhile, inflation in New Zealand eased to its lowest level in nearly three years. The Consumer Price Index (CPI) rose 0.6% in the three months to end March 2024, bringing the annual inflation rate down to 4.0%, its lowest level since June 2021. However, domestically generated inflation continued to surprise on the upside, at 5.8%. This was seen to reinforce the Reserve Bank of New Zealand’s (RBNZ) cautious stance when it came to setting interest rate policy.
  • As largely expected, the RBNZ offered businesses and households no relief, leaving interest rates unchanged throughout the quarter at 5.50%. It did however raise its Official Cash Rate (OCR) track – where it expects the OCR to peak – by 5 basis points to 5.65%, implying a 60% chance of another interest rate hike. However, interest rate markets continued to bet against the next move being a hike, and by quarter end, markets were pricing in a quarter percent cut by the end of 2024.

What does the fund invest in?

The fund invests mainly in cash and cash equivalents. These may include investments issued by New Zealand-registered banks, the New Zealand Government, corporations or local authorities, or non-New Zealand governments.

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



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


Important information

ANZ New Zealand Investments Limited is the issuer and manager of the ANZ Default KiwiSaver Scheme. Important information is available under terms and conditions. Download the guide and product disclosure statement.

This material is for information purposes only. We recommend seeking financial advice about your situation and goals before getting a financial product. To talk to one of our team at ANZ, please call 0800 736 034, or for more information about ANZ’s financial advice service or to view our financial advice provider disclosure statement see anz.co.nz/fapdisclosure