How has the fund performed?
Performance as at 31 March 2026
Rate | |
|---|---|
3 months | 1.94% |
1 year | 7.52% |
3 years (p.a.) | 7.15% |
5 years (p.a.) | 3.06% |
10 years (p.a.) | 3.37% |
Since launch (p.a.) | 3.62% |
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 global listed property sector ended the first quarter higher, though like most equity markets, it saw a significant sell-off in the final weeks amid the geopolitical unrest after the US and Israel strikes on Iran. For the quarter, the global listed property index was 0.9% higher.
At a regional level, Hong Kong (+15.1%) and the US (+4.5%) were the two strongest performing. Hong Kong property surged in the early parts of 2026 amid emerging market outperformance, while the US market benefited from the country’s energy-surplus position, which made its macroeconomic outlook more positive on a comparable basis. Conversely, Australia (-16.2%) and the UK (-8.8%) lagged, largely due to a surge in bond yields. The yield on both the Australian and UK 10-year government bond rose to their highest levels on more than a decade.
Despite some concerns around AI during the quarter, data centres performed well, while the rise in bond yields saw residential and office REITs lag.
Amid the outperformance of data centres, the fund’s overweight to Equinix, which is one of the largest global data centre providers, was a significant contributor to performance over the quarter. Shares in the company rose nearly 30%, supported by some strong earnings growth, while news of its US $4.2 billion acquisition of Nordic data centre operator, atNorth, also boosted investor sentiment. The acquisition was alongside the Canada Pension Plan Investment Board (CPP Investments).
Regional factors also benefited fund performance, with some Asian real estate holdings leading the way, including Sumitomo Realty & Development and Sun Hung Kai Properties. Shares in Sumitomo Realty rose more than 10%, supported in part by the landslide election of Sanae Takaichi, whose pro-growth agenda aided investor sentiment. Meanwhile, Sun Hung Kai shares surged nearly 40% on the back of the strength in Hong Kong markets amid improving sentiment towards the Chinese economy.
Non-holdings in Vonovia SE, Europe’s largest residential landlord, and BXP Inc., North American office REIT operator also contributed to relative performance. Both companies were negatively impacted by poor sector performance, while Vonovia’s decline was exacerbated by a full-year earnings miss, which saw its share price hit a two-year low.
Offsetting some positive performance was an overweight to Vornado Realty Trust, which saw its share price drop more than 20% over the quarter. The weakness came after a slight earnings miss, while New York Mayor Zohran Mamdani’s wealth tax plan has also weighed on the New York real estate sector.
Finally, an overweight to Big Yellow Group PLC also weighed on performance. The UK self-storage company dropped on regional weakness, while news that the company’s CEO, Jim Gibson, will retire in July, also tempered enthusiasm. Gibson has been with the company for more than 20 years.
For more information on investment markets
What does the fund invest in?
The fund invests mainly in international listed property assets. Investments may include:
- Companies, funds or trusts that invest in property and are listed or are soon to be listed
- 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.