Returns to the 31st of March 2024
(after fees* and before tax)
Generate KiwiSaver Funds:
1 Month
1 Year
5 Year (p.a.)
10 Year (p.a.)
Since inception**
(p.a.)
Focused
Growth Fund
3.68%
25.45%
9.46%
10.42%
9.83%
Growth
Fund
3.25%
20.34%
8.38%
9.56%
8.97%
Moderate
Fund***
2.12%
11.16%
4.89%
5.95%
5.49%
Balanced Fund^
2.69%
14.85%
9.53%
Conservative Fund^
1.62%
8.05%
5.12%
Defensive Fund^
0.97%
5.52%
3.53%
Generate Managed Funds:
1 Month
1 Year
5 Year (p.a.)
10 Year (p.a.)
Since inception** (p.a)
Focused Growth Managed Fund***
3.67%
25.19%
8.16%
Balanced Managed Fund^
2.67%
14.92%
9.65%
Conservative Managed Fund^
1.60%
8.10%
5.02%
Thematic Managed Fund^^
2.69%
Australasian Managed Fund^^
3.61%
Except for the $3 per member per month administration expense that is charged to KiwiSaver members.
** The Generate KiwiSaver Scheme funds opened on 16 April 2013. The Generate Focused Growth Trust opened on 1 November 2019.
***Following the launch of our new funds, the Conservative Fund has been renamed as the Moderate Fund and the Focused Growth Trust has been renamed as the Focused Growth Managed Fund.
^ these funds were established on 16 May 2022
^^ these funds were established on 3 July 2023
Past performance is not necessarily an indicator of future performance. Generate’s fund updates can be found here.
International Equities
Global equities climbed higher in March but there was a marked change in the composition of winners and losers compared to the AI-driven rally of the past 12 months. Europe was the strongest region, Energy was the best performing sector, and Small Caps outperformed Large Caps. Many market pundits have taken this as a sign that the rally is broadening beyond the Magnificent Seven, a healthy sign for the overall market, and this is supported by recent economic data that suggest the global economy, particularly the US, is in better shape than anticipated. The downside to a strong economy could be higher inflation and subsequently higher for longer interest rates, typically a negative for equities. But for the moment at least, markets are taking the renewed inflation threat in their stride.
Our global investments had a mixed month relative to the index as many outperformers over the past year fell victim to profit-taking, particularly in the consumer sector where earnings results failed to meet lofty expectations (Lululemon, Ulta Beauty). On the positive side, gold producer Agnico Eagle Mines rallied +24% after posting earnings and production growth that topped market expectations. Bank holdings such as Western Alliance, JP Morgan and Bank of America all performed well, helped by positive outlook commentaries from management teams at recent financials’ conferences. Alphabet also staged a comeback after enduring a selloff earlier in the year, as the market debated whether the stock will ultimately be an AI winner or loser.
New Zealand & Australian equities
The local share market enjoyed a solid month of gains. The broad market index, the S&P/NZX 50, was up +3.1%, and the S&P/NZX Real Estate index gained +3.8%. Following the busy reporting season in February, news flow over the month in the local market was limited.
The strongest performer in March was retirement developer and operator, Arvida Group, which rose +14.4%. This was a welcome gain given Arvida’s poor start to the year. In late 2023, Arvida announced it had received a non-binding indicative offer a few months earlier. This saw Arvida’s shares perform strongly into the end of 2023, but as it became less and less likely the bidder would be back with a revised offer, Arvida’s share price slumped. As we approach the financial year end it seems the market is refocusing on the business' fundamentals, which should have improved modestly.
The Australian Stock Exchange listed property company, Mirvac Group, was also a strong performer, appreciating +10.4%. During the month, a strong set of employment numbers saw the unemployment rate decline from 4.1% to 3.7%. This suggests the Australian economy is unlikely to slip into a recession.
The weakest performing stock was EBOS Group, which is a healthcare distribution company and animal care supplier. Some market participants are speculating that the company may exit the MSCI World Index at the end of May which, if correct, would see a number of large passive funds sell their shares. This has caused early selling pressure from speculators and has driven the share price decline of -7.3% in March.
Top Holdings as of the 29th of February 2024
International Equities
Microsoft
Amazon
Alaphabet
Berkshire Hathaway
Nvidia
External Managers
T Rowe Price Global Equity Fund
Te Ahumairangi Global Equity Fund
Worldwide Healthcare Trust
CIM Infrastructure III Fund
European Opportunities Trust
Australasian Equities
Infratil
Contact Energy
Spark
Fisher & Paykel Healthcare
Auckland International Airport
Fixed Income
Local Government Funding Agency Bonds
Kainga Ora Bonds
Westpac Bonds
ANZ Bonds
Investore Property Bonds