How has the fund performed?
Performance as at 31 March 2026
Rate | |
|---|---|
3 months | -1.06% |
1 year | 4.27% |
3 years (p.a.) | 4.72% |
5 years (p.a.) | 2.03% |
10 years (p.a.) | 3.30% |
Since launch (p.a.) | 4.58% |
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 fund holds a large allocation to bonds, both in New Zealand and overseas, which together make up more than half of its investments. Bond markets had a difficult quarter and did not provide their usual stability. Rising global tensions, including conflict involving the US, Israel and Iran, pushed oil prices higher and revived concerns that inflation could increase again. This led investors to reassess the outlook for interest rates, causing bond prices to fall.
New Zealand bonds generally followed offshore markets. While economic growth locally remains weak, inflation has stayed higher than expected. This led the Reserve Bank of New Zealand to signal greater concern about inflation, increasing market expectations that interest rates may need to rise. As a result, local bond returns were also weaker over the quarter.
The fund’s exposure to shares is relatively small. Share markets were volatile, with early optimism giving way to weaker conditions as uncertainty increased. Several overseas markets, which had earlier reached record highs, fell back later in the quarter. New Zealand shares also declined, largely reflecting global developments, while company earnings were mixed.
Following a strong start to the year, the decline in both bond and share markets resulted in negative returns for the quarter. One factor holding back performance was weaker returns from one of our international bond fund managers, due to exposure to UK bonds, which underperformed. This was partly offset by good stock selection within our international shares, property and infrastructure investments.
Looking ahead, markets are likely to remain unsettled while global uncertainty persists. However, periods like this can also create opportunities. We currently favour US shares over European shares, as the US economy and company earnings appear more resilient, while European markets face greater exposure to energy‑related pressures. We also see improving value in high‑quality US government bonds following their recent sell‑off.
Overall, we remain focused on maintaining a well‑diversified portfolio that is appropriate for conservative investors. While short‑term fluctuations can be uncomfortable, the fund is designed to help manage risk and provide a more stable investment experience over time.
For more information on investment markets
How the fund has performed over time
The fund aims to achieve (after the fund charge and before tax) over the long term low relatively stable returns, allowing for small 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.
What does the fund invest in?
The fund invests mainly in income assets (cash and cash equivalents and fixed interest), with a smaller exposure to growth assets (Australasian equities and International equities). The fund may also invest in alternative assets.
This graph shows the mix of assets that the fund generally intends to invest in.
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.