ANZ KiwiSaver Scheme Conservative Balanced Fund

Fund report as at 30 September 2023

How has the fund performed?

Performance as at 30 September 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 30 September 2023)

  • The fund has a significant weighting to bonds, making up about half its holdings.
  • It was another tough quarter for global bond markets. Despite signs that central banks were winning in their battle against inflation, resilient economic growth in some of the major economies meant sentiment shifted towards the prospect of interest rates staying ‘higher for longer’. What’s more, expectations remained for further potential hikes before a peak in rates is reached. This was certainly the case in the US, where market pricing suggests one more quarter-percent move higher later this year.
  • New Zealand bonds were also lower over the quarter after the Reserve Bank of New Zealand raised its terminal rate, which suggests there may be another interest rate hike later this year. Meanwhile, stronger-than-expected growth data reaffirmed that the central bank would need to hold interest rates at a restrictive level for a prolonged period.
  • Rising bond yields were a headwind for shares over the quarter, which saw most major share markets finish lower. At a sector level, rising bond yields weighed on real estate and technology companies, while energy was the only strong performer, helped in part by rising oil prices.  
  • Equity stock selection was the main detractor on fund performance, largely driven by an underweight position to the strong performing energy sector. Meanwhile, an underweight position to the poor-performing consumer discretionary sector, which would have ordinarily been beneficial, was offset by some weak individual company performance.
  • In bonds, it was no surprise that our international fixed interest managers faced challenges, especially as US bonds were some of the worst-performing over the quarter. 
  • At a tactical level, we remain underweight to international shares and overweight to global and New Zealand bonds. This reflects our belief that the global economy will start to slow in the coming months as central banks hold rates in restrictive territory for an extended period of time. This will soften labour markets and slow consumption, which will eventually weigh on economic growth. In New Zealand, consumer spending is slowing, and households are starting to roll off ultra-low mortgage rates, which will decrease disposable income.

How the fund has performed over time

The fund aims to achieve (after the fund charge and before tax) over the long term low to moderate returns, allowing for small to moderate 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 September 2023. The y-axis (vertical) shows values from $0 to $2,500 in $500 increments. The line is labelled 'Conservative Balanced Fund'. The line starts at a value of $1,000 for September 2007. The trend is downwards until a low of approximately $900 between September 2008 and September 2009. The trend is then upwards, other than small dips between September 2018 and September 2019, and between September 2019 and September 2020. The trend then continues mostly upwards until a sustained decline over 2022. After a good first half to 2023, a tough third quarter sees the value ending at $2,153.09.

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 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.

Income assets:

- 15% Cash and cash equivalents
- 50% Fixed interest

Growth assets:

- 4.5% Listed property
- 29% Equities
- 1.5% 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 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