ANZ Default KiwiSaver Scheme High Growth Fund

The High Growth Fund aims for higher long-term returns, allowing for larger ups and downs in value.

This fund could suit investors focused on building their KiwiSaver savings over the long term, who are comfortable with significant changes in value along the way and don’t expect to access their savings for many years.

Minimum suggested investment timeframe is 9 or more years. The minimum suggested timeframe indicates how long to stay invested to manage short-term ups and downs and give your investment time to recover from any drops in value.

The risk indicator for this fund is 5, on a scale from 1 (low) to 7 (high). The rating reflects how much the value of the fund’s assets goes up and down (volatility). A higher risk means higher potential returns over time, but more ups and downs along the way.

If you’re an existing member of the ANZ Default KiwiSaver Scheme, you can change between funds within the scheme using ANZ goMoney or Internet Banking.

The fund is predominantly invested in shares, which make up more than 90% of its investments. Global share markets experienced a volatile quarter as renewed hostilities in the Middle East pushed oil prices higher and raised concerns that inflation could remain elevated for longer. Despite this backdrop, international share markets delivered positive returns overall.

In the US, share markets were supported by another strong earnings season, with many companies continuing to report resilient profits despite a more challenging economic environment. New Zealand shares also rose over the quarter, although returns were more modest as inflation pressures and higher interest rates continued to weigh on the domestic economy.

Inflation remained a key focus for investors throughout the quarter. Several central banks raised interest rates, including the US Federal Reserve and the European Central Bank, while the Reserve Bank of New Zealand increased the Official Cash Rate twice and signalled that further increases may be required. These developments created periods of market volatility and weighed on some interest rate-sensitive sectors.

Performance was driven primarily by the fund's share market investments, particularly internationally. While property and infrastructure assets faced headwinds as higher interest rates weighed on valuations, gains from equities more than offset these declines and helped the fund deliver a positive return for the quarter.

Looking ahead, inflation and interest rate expectations are likely to remain key drivers of market performance. While uncertainty remains elevated, the fund continues to focus on long-term growth opportunities across global share markets.