ANZ KiwiSaver Scheme Growth Fund

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

Global share markets closed the year on a positive note, though performance varied by region. In the US, major indices posted solid gains, with the S&P 500 and Nasdaq Composite both up 2.7% over the quarter. There was a pause in the AI-driven momentum that dominated earlier in the year, as investors rotated into sectors such as financials and industrials.

Europe delivered standout returns. Easing inflation boosted sentiment, driving the FTSE 100 up 6.9% and the Euro Stoxx 50 up 5.0%, with several benchmarks reaching record highs. Meanwhile, Japan’s Nikkei 225 continued its stellar run, ending the quarter with double-digit gains and bringing its 12-month return to 28.7%. Japanese shares benefited from a weaker yen, ongoing corporate reforms, and improved business outlook following the election of Sanae Takaichi as prime minister.

New Zealand shares posted modest gains in Q4, with the NZX 50 up 1.9%, bringing its annual return to 3.3%, well behind most of its global peers. Persistent economic headwinds tempered sentiment despite broad-based gains, as 36 of 50 index constituents finished higher.

The fund has a small allocation to bonds, which delivered mixed results. The strongest-performing region was the UK after a surprise drop in inflation saw the Bank of England cut interest rates, while US bonds delivered small returns after the US Federal Reserve cut interest rates. In contrast, New Zealand bonds were on the back foot, despite further easing from the Reserve Bank of New Zealand. The weakness was primarily driven after November’s cut was flagged as likely the last in this cycle.

Given the fund’s significant allocation to growth assets, performance was driven by positioning – particularly underweight positions to weaker New Zealand and Australian shares. Closing the overweight New Zealand dollar position added further gains. The primary drag was New Zealand property exposure, which struggled amid rising bond yields.

The fund aims to achieve (after the fund charge and before tax) over the long term high returns, allowing for large ups and downs in value.

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. KiwiSaver rates, fees and agreements.

The fund invests mainly in growth assets (Australasian equities and international equities), with a small exposure to income assets (cash and cash equivalents and fixed interest). The fund may also invest in alternative assets.

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