How has the fund performed?
Performance as at 31 March 2026
Rate | |
|---|---|
3 months | 0.62% |
1 year | 3.28% |
3 years (p.a.) | 4.80% |
5 years (p.a.) | 3.62% |
10 years (p.a.) | 2.76% |
Since launch (p.a.) | 3.25% |
Performance is after the annual fund charge and before tax. KiwiSaver rates, fees and agreements.
What happened this quarter (three months to 31 March 2026)
Global markets were generally weaker over the quarter amid a pickup in volatility following US-Israeli strikes on Iran and the ensuing jump in the price of oil. These developments led to a sharp rise in oil prices, weighing on investor sentiment across risk assets. Against this volatile backdrop, cash continued to deliver stable returns, broadly in line with its benchmark.
Bond markets declined over the quarter, driven largely by concerns that higher oil prices would add to inflationary pressures. Rising inflation expectations tend to be negative for bond prices,
Prior to the start of the Middle East conflict, the Reserve Bank of New Zealand (RBNZ) left the Official Cash Rate (OCR) unchanged at 2.25%. However, the Committee struck a somewhat dovish tone, saying “if the economy evolves as expected, monetary policy is likely to remain accommodative for some time”. This initially supported bond markets, with yields falling modestly. However, following the outbreak of conflict and the lift in oil prices, this trend reversed, with markets beginning to price in the possibility of interest rate hikes before the end of the year.
Global bond markets moved in a similar fashion, with yields trending higher. UK and Australian 10‑year government bond yields rose to their highest levels in more than a decade.
Domestically, economic data showed annual inflation rising to 3.1%, above the central bank’s target range and the highest level since October 2024. Meanwhile, measures of confidence weakened as both consumers and businesses grew more cautious about the economic impact of higher energy costs. The ANZ Business Outlook Survey showed headline confidence falling by 26 points, while the ANZ–Roy Morgan Consumer Confidence Index declined from 100.1 to 91.3.
The ANZ Wholesale Cash Fund is a low-risk fund and aims to preserve capital for investors whilst offering low volatility in returns. As of 31 March, approximately 40% of the portfolio was invested in bank deposits. The fund also holds promissory notes floating rate notes, providing flexibility to respond to interest rate movements and lock in attractive yields as opportunities arise.
Overall, while geopolitical risks and inflation uncertainty increased market volatility over the quarter, the fund remains well positioned to navigate these conditions, prioritising capital protection, liquidity, and stable returns for investors.
For more information on investment markets
What does the fund invest in?
The fund invests mainly in cash and cash equivalents. These may include investments issued by New Zealand-registered banks, the New Zealand Government, corporations or local authorities, or non-New Zealand governments.
This chart shows the mix of assets that the fund generally intends to invest in – 100% cash and cash equivalents.
See the fund's actual investment mix on page 3 of the fund update.
Important information
ANZ New Zealand Investments Limited (‘ANZ Investments’) is the issuer and manager of the ANZ KiwiSaver Scheme, the OneAnswer KiwiSaver Scheme and the ANZ Default KiwiSaver Scheme (no longer a default scheme and closed to new members). For the scheme guides and product disclosure statements see KiwiSaver documents and forms or ask at any ANZ branch.
This material is for information purposes only. Please talk to us if you need financial advice about your situation and goals or about our products and services. See our Financial advice provider disclosure statement (PDF 39.9KB).
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.