A brief look back at the year that was
A key driver of the investment returns shown in your annual account statement is how the fund or funds you’re invested in performed over the year. Below is a snapshot of the main market events over the past 12 months to 31 March 2026 and how they influenced investment performance.
Share markets had a good year – but volatility was elevated
It was a strong period for international share markets, with many reaching record highs and delivering double-digit gains over the 12 months to 31 March 2026.
However, it was not plain sailing. Markets experienced periods of volatility driven by a range of global factors, including President Donald Trump’s tariff policies, conflict in the Middle East, and uncertainty around developments in artificial intelligence (AI). While these events led to short‑term ups and downs, share markets overall proved resilient.
Bond markets delivered gains also, but finished the year under pressure
Bond markets generally delivered positive returns over the 12 months helped by interest rate cuts from many global central banks. New Zealand bonds were among the strongest performers after the Reserve Bank of New Zealand (RBNZ) cut the Official Cash Rate (OCR) to 2.25%.
Towards the end of the year, however, bond markets gave back some of these gains. Higher oil prices raised concerns that inflation could increase once again – an environment in which bonds tend to underperform.
New Zealand’s economic recovery remained muted
The New Zealand economy continued to lag many of its global peers, with growth remaining subdued. Against this backdrop, the RBNZ lowered the OCR in an effort to support economic activity.
Primary industries were one of the brighter spots, with higher prices for dairy and other agricultural products providing some support to the economy.
Despite this, the weaker domestic environment saw the NZX 50 Index underperform most global share markets, finishing the year up 5.2%.
How our funds performed over the year to 31 March 2026
Supported by strong global share markets and generally favourable bond market conditions, all our diversified funds delivered positive returns over the 12 months to 31 March 2026.
Diversification across different regions and asset classes helped capture gains from global markets, while also providing resilience during periods of volatility.
Key points as we look ahead
Geopolitical developments have been a key focus in recent months and are likely to remain so as we move through 2026. Ongoing conflict in the Middle East has pushed oil prices higher, and the responses of governments and central banks will continue to influence both share and bond markets.
Despite these uncertainties, our portfolios remain well diversified and positioned to manage market ups and downs while continuing to seek long-term investment opportunities.
Important information
This information is issued by ANZ New Zealand Investments Limited (ANZ Investments). The information is current as at 7 April 2026, and is subject to change. This material is for information purposes only. Although all the information in this article is obtained in good faith from sources believed to be reliable, no representation of warranty, express or implied is made as to its accuracy or completeness. To the extent permitted by law, ANZ Investments does not accept any responsibility or liability arising from your use of this information.
Past performance does not indicate future performance. The actual performance any given investor realises will depend on many things, is not guaranteed and may be negative as well as positive.
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. For more information about ANZ’s financial advice service, see our Financial advice provider disclosure statement (PDF 39.9KB).