ANZ Default KiwiSaver Scheme Balanced Growth Fund

Fund report as at 30 June 2019

How has the fund performed?

Performance as at 30 June 2019

3 months

1 year

3 years (pa)

5 years (pa)

Since launch

3.63%

7.25%

8.67%

8.79%

6.33%

Performance is after the annual fund charge, and before tax and membership fees (if applicable). For more information, see legal information and disclaimers

What happened this quarter (3 months to 30 June 2019)

  • The fund gained in the second quarter, thanks in part to its 40% weighting to international equities. Additionally, with more than 20% weighted to fixed interest, the rise in bond prices helped bump the year-to-date gains to 13%.
  • After a poor showing in May, global share markets rebounded in June, with major indices closing the month higher and most recording solid gains for the second quarter of 2019. The MSCI All Country World Index finished the quarter up 2.5%, continuing its upward trend in 2019. The S&P 500 reached an all-time high, adding nearly 4% by the end of the quarter.
  • The FTSE 100 eked out gains of 2%, despite the UK’s political situation becoming ever-more uncertain this quarter, with Prime Minister Theresa May resigning after failing to get her Brexit deal over the line with the British Parliament. Ongoing threats of a trade war between the US and China and escalating relations between the US and Iran have had an effect on global markets.
  • The New Zealand dollar fell to a seven-month low versus the greenback in the second quarter, trading below 65 cents in mid-May before making a sharp recovery to close above 67 cents, down 1.3% over the quarter.
  • Bonds tend to perform well in an environment of steady or declining interest rates and our bond holdings outperformed their benchmark this quarter.
  • Interest rates hit record lows as central banks around the world reaffirmed their ‘lower for longer’ stance on interest rates. The Federal Reserve left interest rates unchanged but signalled future rate cuts are likely, while the European Central Bank warned that if inflation does not pick up, additional stimulus would be required.
Need more information?
  • Read our Market Review for more information on investment markets
  • Key read: why it’s wise not to try to time the market or chase returns

How the fund has performed against its objective

The fund aims to achieve a positive yearly return (after the fund charge and before tax) that over the long term is 4.0% over inflation (allowing for a negative return 4.7 years in every 20).

The graph below shows the value of a $1,000 investment made at the time the fund launched. The blue line represents the actual value of the investment while the aqua line shows the level (fund objective) the fund aims to beat over the long term. When the blue line is higher than the aqua line, the performance is better than target.

DKS_BGR

Performance is after the annual fund charge and before tax and membership fees (if applicable). For more information, see legal information and disclaimers.

What does the fund invest in?

The fund invests mainly in growth assets (equities, listed property and listed infrastructure), with some exposure to income assets (cash and cash equivalents and fixed interest). The fund may also invest in alternative assets.

This chart shows the mix of assets that the fund generally intends to invest in.

Balanced Growth

 

 

 

 

 

 

See the fund's actual investment mix on page 3 of the Fund update.

 

 

 

 The fine print Hide
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