ANZ Default KiwiSaver Scheme Conservative Fund
Quarterly fund report
How has the fund performed?
Performance as at 30 June 2025
Rate | |
---|---|
3 months | 2.31% |
1 year | 6.56% |
3 years (p.a.) | 5.55% |
5 years (p.a.) | 3.06% |
10 years (p.a.) | 4.01% |
Since launch (p.a.) | 4.96% |
Performance is after the annual fund charge and before tax. Rates, fees and agreements.
What happened this quarter (three months to 30 June 2025)
- The fund maintains a significant allocation to bonds, which make up more than half of its holdings. Despite a volatile quarter for global bond markets, most ended the period higher, continuing a strong start to the year for fixed interest investments.
- In the US, bonds posted gains but lagged behind several international peers. Investor caution stemmed from concerns that tariffs might fuel inflation, alongside scrutiny of the country’s fiscal outlook with government debt rising. Additionally, the Federal Reserve held interest rates steady, adopting a data-dependent approach with a focus on inflation trends.
- European bond markets outperformed, supported by the European Central Bank’s dovish stance, which included two separate 25-basis-point rate cuts. UK bonds also saw solid gains, driven early in the quarter by news that annual inflation had eased to 2.6% as of 31 March.
- In New Zealand, bond returns were modest and trailed most global counterparts. Although the Reserve Bank of New Zealand implemented two rate cuts, markets adjusted expectations for future easing after one committee member voted to keep rates unchanged in May. Additionally, a pick-up in food prices also posed upside risks to inflation.
- The fund’s equity exposure remains modest, but share markets broadly advanced during the quarter. US stocks led the rally, fuelled by renewed investor interest in AI-related companies. The Nasdaq 100 and S&P 500 both delivered double-digit returns, while New Zealand’s NZX 50 posted a more modest gain of 2.7%.
- Positive fund performance was largely driven by its exposure to listed infrastructure, which had a strong quarter. The sector benefitted from its resilience during times of heightened economic uncertainty. Infrastructure assets typically generate stable cash-flows, operating in sectors that have high barriers to entry.
- We recently introduced an underweight position to US equities, based on concerns that valuations are stretched, economic growth is slowing, and the labour market is showing signs of weakness. Additionally, rising geopolitical tensions may further pressure equity prices as tariff-related costs begin to impact corporate earnings. Elsewhere, we maintain an overweight position in US 10-year government bonds. Given the current economic uncertainties and labour market concerns, we believe defensive assets like government bonds are well-positioned to perform.
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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 low relatively stable returns, allowing for small ups and downs in value.
The graph below shows the value of a $1,000 investment made at the time the fund launched.
Line graph text description
The x-axis (horizontal) shows annual dates from September 2007 to June 2025. The y-axis (vertical) shows values from $0 to $2,500 in $500 increments. The line is labelled 'Conservative Fund'. The line starts at a value of $1,000 for September 2007. The trend is slightly upwards until between September 2008 and September 2009 when the upwards trend increases. The trend then continues mostly upwards until a sustained decline over 2022. Since then, the value has gradually increased, with a current value (as at 30 June 2025) of $2,364.16.
Performance is after the annual fund charge and before tax. Rates, fees and agreements.
What does the fund invest in?
The fund invests mainly in income assets (cash and cash equivalents and fixed interest), with a smaller 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.
Pie graph text description
Income assets:
- 15% Cash and cash equivalents
- 65% Fixed interest
Growth assets:
- 2.3% Listed property
- 16.95% Equities
- 0.75% Listed infrastructure
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