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ANZ Default KiwiSaver Scheme Conservative Balanced Fund

Fund report as at 30 September 2020

How has the fund performed?

Performance as at 30 September 2020

3 months 1 year 3 years (pa) 5 years (pa) Since launch
2.81% 4.46% 5.96% 5.91% 5.90%


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)

  • The fund has a heavy weighting to bonds, making up around half of the portfolio. 
  • 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 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. The Bank also 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. 
  • In share markets, most indices 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%. 
  • 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. 

Need more information?


Read our Market Review for more information on investment markets.

How the fund has performed over time

The fund aims to achieve (after the fund charge and before tax) over the long term a modest to moderate yearly return allowing for modest to 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.

What does the fund invest in?

The fund invests mainly in income assets (cash and cash equivalents and fixed interest), with some exposure to growth assets (equities, listed property and listed infrastructure). The fund may also invest in alternative assets.

This chart shows the mix of assets that the fund generally intends to invest in.

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

See the fund's full portfolio holdings.

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