CEO Update
2024 has kicked off with significant momentum. Following the festive celebrations, the anniversary weekends and Waitangi Day, we're already advancing rapidly into February. However, before we move further into the year, it's important to pause and share some uplifting news regarding our Lifestages KiwiSaver Scheme High Growth Fund.
As at 31 December 2023, our High Growth Fund emerged as a leading KiwiSaver fund in performance, delivering 19.89% over the past 12 months, and 5.65% pa over the last three , as reported in the aggressive category of the Morningstar tables.
This outstanding achievement is a testament to the exceptional efforts of our investment teams, dedicated to serving our KiwiSaver members. The remarkable success of the High Growth Fund has likely had a beneficial effect on the majority of your KiwiSaver accounts, given its role as a foundational component in all of Lifestages Auto options and its popularity among a significant portion of members who choose to self-select their investments.
In addition to this exciting news, we are thrilled to inform you that we are in the process of unveiling our new brand. After thoughtful consideration, we have decided to more closely align us with our parent, SBS Bank. Over the coming months you'll notice a transition to SBS Wealth as our primary branding identity.
Morne Redgard
CEO
Performance Data
The Lifestages Auto Options invest in combinations of the Lifestages High Growth Fund and the Lifestages Income Fund in proportions that vary in accordance with pre-selected age bands. These options automatically adjust the risk profile of your investment by altering the proportions invested into the funds based on your age.
Performance as at 31 January 2024.
| Fund Option | 1M | 1Y | 5Y pa |
| High Growth Fund | 1.97% | 15.91% | 8.70% |
| Auto 0-49 Option | 1.97% | 15.91% | 8.70% |
| Auto 50-54 Option | 1.55% | 13.44% | 7.21% |
| Auto 55-59 Option | 1.14% | 10.97% | 5.64% |
| Auto 60-64 Option | 0.73% | 8.53% | 4.04% |
| Auto 65+ Option | 0.53% | 7.33% | 2.95% |
| Income Fund | -0.09% | 3.76% | 0.77% |
For more information about how performance is calculated and more performance periods, click here.
Market Update
Share markets around the world continue to rise, with Japan up almost 7%, and the US 5% for the month in NZD. Closer to home, NZ and Australian share markets rose just under 1% for January.
This led to another good month for the High Growth Fund, up 1.97%. Key drivers for this were semi-conductor companies Nvidia +27.8% and ASML +18.2%, Japanese car manufacturing company Toyota +14.9%, healthcare company Novo Nordisk 14.1% and Meta 13.4%.
Inflation in NZ has peaked, the latest December number was 4.7%, a far cry from the 7.2% reported figure twelve months earlier. We expect the inflation figure to continue to fall, although it may be slower than some forecast. This should lead to better results locally in the second half of 2024.
The end of January was reporting season for the US mega-cap stocks. There was some good news from Meta (revenue up 25% and good progress on advancing AI vision), Amazon (net sales increased by 14% for the quarter), and Alphabet (revenue up 13% and ongoing strength in Search, YouTube and Cloud, benefiting from AI investments and innovation). These are three of our largest stock positions in the High Growth Fund.
A new chapter: Lifestages rebranding to SBS Wealth
In a move that brings us closer to our foundational roots with SBS Bank, we’re excited to let you know we are rebranding our Lifestages business to become SBS Wealth. This next step in our journey signals a deeper connection with our Southland values and identity of SBS Bank, while making sure we continue to deliver the outstanding service and funds management have come to expect from us. Under the hood we will also continue to offer the same trusted financial products and advice tailored to individual life stages.
We can help
Navigating financial decisions can be complex, but you don't have to do it alone. Our advice team is here to help you make informed choices about your Lifestages KiwiSaver Scheme settings. And at no additional cost for Lifestages members!
Get in touch with our digital advice team today and let's make 2024 a year of smart planning and financial growth!