ANZ Default KiwiSaver Scheme Conservative Fund

Fund report as at 31 December 2023


How has the fund performed?

Performance as at 31 December 2023


3 months


1 year


3 years (p.a.)


5 years (p.a.)


10 years (p.a.)


Since launch (p.a.)


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

What happened this quarter (three months to 31 December 2023)

  • The fund has a significant weighting to bonds, which make up more than half of the fund’s holdings.
  • Global bonds had one of their best quarters on record as the likelihood grew that central banks are finished with raising interest rates, thanks in part to an easing of inflation pressures in the US and some European countries. Interest rate markets now suggest the next move by many central banks will be to cut rates (bond prices rise as interest rates fall). 
  • New Zealand bonds also delivered strong gains over the quarter, with yields dropping to multi-month lows. Despite this, at its November meeting, the Reserve Bank of New Zealand (RBNZ) raised the neutral rate (the rate at which it expects the OCR to peak) to 5.69%. This implies a further 25-basis-point hike is likely. However, these expectations were tempered by news the domestic economy shrank in the third quarter – well below forecasts, including those of the RBNZ. 
  • Against the backdrop of an impressive quarter for fixed interest, it was no surprise that our international bond managers contributed to relative performance, while at a tactical level our overweight to both domestic and international bonds continues to add to performance. 
  • Meanwhile, although the fund is predominantly made up of bonds and other income assets, its holding of shares – notably growth stocks – was another contributor to performance.
  • We remain underweight to international shares, and overweight to domestic and international fixed interest. This reflects our belief that the global economy will start to slow in the coming months, dragged down by the flow-on effect of higher interest rates. We expect labour markets to soften and slow consumption, which will eventually weigh on economic growth. Our base case is that we will see a mild recession in the US in 2024.

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.

The x-axis (horizontal) shows annual dates from September 2007 to December 2023. 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. After a good first half to 2023, followed by a tough third quarter, the value recovers to $2,166.81.

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.

Income assets:

- 20% Cash and cash equivalents
- 60% Fixed interest

Growth assets:

- 2.25% Listed property
- 17% Equities
- 0.75% Other (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