OneAnswer KiwiSaver Scheme Australasian Share Fund

The Australasian Share Fund invests mainly in New Zealand and Australian equities. Investments may include equities in companies that are listed or intend to list on the New Zealand or Australian stock exchanges, and cash and cash equivalents.

The Australasian Share Fund aims to achieve a return (after the fund charge and before tax) that over the long-term outperforms the relevant market index. 

Minimum suggested investment timeframe is 10 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.

See Past updates for our funds.

Australasian equities delivered positive returns over the quarter, although gains varied across markets and sectors. Company earnings results and management outlook statements were the primary drivers of performance, with investors rewarding businesses that demonstrated resilient earnings and positive growth prospects.

In New Zealand, economic conditions remained mixed, with inflation remaining above the central bank’s target range. This prompted the Reserve Bank of New Zealand to raise the Official Cash Rate twice during the quarter and reiterate its commitment to getting pricing pressures down. Despite the increase in interest rates, business confidence remained relatively robust and expectations for a gradual improvement in economic activity supported market sentiment.

Across the Tasman, Australian equities also delivered positive returns, supported by broadly resilient corporate earnings and continued strength in parts of the resources and financial sectors. Inflation remained above the Reserve Bank of Australia's target range, leading the central bank to continue its tightening cycle. While higher interest rates created headwinds for some sectors, investors remained encouraged by the relative strength of economic activity and company earnings.

Relative performance was supported by a number of successful stock-specific positions across both markets. In Australia, biotechnology company CSL was the largest contributor after its shares recovered strongly during the quarter as investor concerns around earnings growth eased following a challenging period earlier in the year. Insurance broker Steadfast Group also added value as investors responded positively to the resilience of its earnings outlook.

Within New Zealand, an underweight position in telecommunications infrastructure provider Chorus was a significant contributor after investors responded cautiously to the company's earnings outlook despite continued growth in revenue, earnings and dividends. An overweight position in freight and logistics company Mainfreight also added value as investors became more optimistic that freight volumes and trading conditions may be stabilising.

Offsetting these gains, cancer diagnostics company Pacific Edge was the largest detractor after giving back some of the strong gains recorded in the previous quarter. Underweight positions in Hallenstein Glasson and Skellerup Holdings also detracted from relative performance. Hallenstein Glasson delivered a strong full-year result, with profit growth supported by robust sales growth and improving profitability. Skellerup Holdings also did well after reporting record earnings and navigating tariff and supply chain challenges. An underweight position in Fisher & Paykel Healthcare also weighed on returns as the company upgraded earnings guidance and was among the strongest performers in the Australasian market.