How has the fund performed?
Performance as at 31 March 2026
Rate | |
|---|---|
3 months | -13.40% |
1 year | 1.81% |
3 years (p.a.) | -0.93% |
5 years (p.a.) | -3.86% |
10 years (p.a.) | 2.87% |
Since launch (p.a.) | 4.82% |
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)
The Trans‑Tasman listed property sector faced a challenging start to 2026, with rising bond yields and renewed inflation concerns weighing heavily on interest‑rate‑sensitive assets. Both New Zealand and Australian property markets gave back earlier gains as investor sentiment deteriorated, particularly late in the quarter as global volatility increased.
In New Zealand, the listed property sector underperformed the broader equity market, with the sector index falling sharply over the quarter and all constituent companies ending the period lower. The primary headwind was a pronounced rise in bond yields, which reduced the relative appeal of property’s yield‑based returns. While the Reserve Bank of New Zealand (RBNZ) left the Official Cash Rate unchanged at 2.25% and reiterated that policy is likely to remain accommodative for some time, inflation remained elevated. Annual CPI rose to 3.1% in the December quarter, and the sharp increase in oil prices late in March added to near‑term inflation concerns. As a result, the New Zealand 10‑year government bond yield rose meaningfully over the quarter, weighing on sector valuations.
Economic data and sentiment were mixed. Business and consumer confidence weakened as the quarter progressed amid higher fuel prices, geopolitical uncertainty and ongoing pressure on household budgets. These conditions continued to temper optimism toward commercial and residential property markets, reinforcing caution across the listed property universe.
Across the Tasman, Australian listed property markets experienced an even more difficult quarter. The sector weakened as the Reserve Bank of Australia raised interest rates twice, in response to stronger-than-expected inflation. Rising bond yields weighed on valuations, while broader concerns around commercial property fundamentals continued to influence sentiment.
Despite the challenging backdrop, positive contributions came from overweight exposure to Goodman Property Trust, which proved more resilient than the broader New Zealand property sector. An overweight allocation to cash also contributed positively, helping to limit downside during periods of heightened volatility.
Elsewhere, underweight exposure to selected weaker‑performing names, including Charter Hall Group, supported relative returns as Australian property managers and developers came under pressure from higher interest rate expectations. Select exposures within retail and logistics‑oriented property holdings also provided modest support.
However, these positives were more than offset by areas of weakness across the portfolio. Overweight exposure to the retirement village sector, notably Oceania Healthcare, Ryman Healthcare and Summerset Group, detracted as rising bond yields, softer housing‑market sentiment and the prospect of higher construction costs weighed heavily on this sector. An overweight in weak-performing Stride Property Group, and underweights to better-performing (at least relative to the property sector) Argosy Property and Property for Industry also hurt amid broad‑based weakness in New Zealand commercial property.
For more information on investment markets
What does the fund invest in?
The fund invests mainly in New Zealand and Australian listed property assets. Investments may include:
- Companies, funds or trusts that invest in property and are listed or intend to list
- Cash and cash equivalents.
This chart shows the mix of assets that the fund generally intends to invest in – 100% listed property.
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.