Investor update

SBS Wealth Investment Funds - August 2026

Welcome to your August update

This month, we're sharing the latest performance updates and insights from our Investment Management Team to help you understand what’s been happening in markets and what it means for your investments.

While markets moved around throughout July, the longer-term picture remains positive, and staying informed is one of the best ways to stay confident in your investment journey.

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A month of mixed results across global markets

July was a month where markets had plenty to think about. Investors weighed up changing expectations for interest rates, uncertainty in the Middle East, and a pullback in some of the technology and AI-related companies that have driven strong returns in recent years.

While market movements varied across regions and sectors, the SBS Wealth Investment Strategies were broadly flat over the month, with gains from shares helping offset weaker bond returns.

Performance data

Performance as at 31 July 2026.

Fund Option	1M	1Y	5y pa	10Y pa
High Growth Strategy	-1.66%	15.09%
Growth Strategy	-1.54%	12.31%
Balanced Strategy	-1.42%	9.54%
Conservative Strategy	-1.23%	5.37%
World Equity Portfolio	-2.16%	19.02%	10.54%	11.69%
Australasian Equity Portfolio	-0.17%	3.82%	2.49%	5.71%
World Bond Portfolio	-1.19%	0.27%	-0.22%	0.86%
New Zealand Bond Portfolio	-0.83%	3.65%	2.00%	2.09%

  For more information about how performance is calculated and for more performance periods, click here.  

What happened in the markets?

July was a reminder that markets rarely move in a straight line.

US markets experienced periods of volatility as investors weighed inflation, interest rates and the outlook for AI-driven growth. Fluctuating oil prices and ongoing tensions in the Middle East also added uncertainty.

Sentiment improved later in the month, supported by strong earnings from several large technology companies and signs that inflation pressures may be easing.

Europe was one of the stronger-performing regions, particularly the UK, with Energy, Financials and Communication Services leading returns. Meanwhile, some of the technology companies that had delivered strong gains earlier in the year experienced a pullback.

Bond investments had a tougher month. Investors increasingly expect interest rates to stay higher for longer, which put pressure on bond returns.

What happened in our funds?

World Equity Portfolio

The World Equity Portfolio was down for the month at -2.2%, and there was plenty of movement beneath the surface.

A late-month rally helped the portfolio recover some ground after weakness earlier in July. Energy and Financial companies were among the strongest contributors, helping offset softer returns from technology stocks.

Some of the largest falls came from AI hardware and other AI related companies, which had been among the strongest performers earlier in the year. While this created short-term headwinds, returns remain strong over the longer term.

Top performers included Microsoft 20.6%, Sony 14.1%, Amazon 10.2%, and Thermo Fisher 10.9%, while recent darlings suffered – LAM Research –34.5%, Micron –33.1%, Vertiv –29.8%, Caterpillar –25.8%, ASML –20.6%, GE Vernova –18.6%, and TSM –18.2%.

Australasian Equity Portfolio

The Australasian Equity Portfolio returned -0.2% for July.

Australian shares were among the stronger performers, supported by large Financial and Energy companies. New Zealand shares were also slightly positive, with Industrial and Healthcare companies leading gains.

Top performers for the month were Mainfreight 13.7%, EBOS 5.8%, CBA 5.7%, Westpac 5.5%, CSL 5.3%, AIA 4.3% and FPH 4.3%.

World Bond Portfolio

The World Bond Portfolio returned -1.2% for the month.

Bond markets remained under pressure as investors adjusted their expectations around interest rates. While this affected short-term returns, higher bond yields can create opportunities for future income and returns. Our underlying managers have been gradually increasing exposure to longer-dated bonds where they see value.

New Zealand Bond Portfolio

The New Zealand Bond Portfolio returned -0.8x% during July.

Like global bond markets, New Zealand bonds were affected by rising interest rate expectations, which placed pressure on prices over the month.

Investment Strategies

The SBS Wealth Investment Strategies were negative over July, with losses experienced from shares and weaker bond returns.

This is a good example of how diversification works in practice. Different investments perform differently at different times, helping to smooth the overall journey for investors.

What this means for you

Months like July are a good reminder that short-term market movements often tell only part of the story.

While headlines can make markets feel unpredictable, investment returns are rarely driven by a single event or theme. Different sectors, regions and asset classes will perform well at different times, which is why diversification remains such an important part of building long-term wealth.

For investors, the focus should remain on the things you can control: staying invested, maintaining a diversified portfolio, and keeping your investment strategy aligned to your goals.

Three simple ways to stay on track

Keep market movements in perspective

Short-term ups and downs are a normal part of investing. Your investment strategy is designed to help you achieve your goals over years, not months.

Trust the value of diversification

Different investments perform differently at different times. A diversified portfolio helps reduce the impact of any one market or sector falling out of favour.

Stay focused on your goals

Your investment plan should reflect your goals, timeframe and circumstances. Periodically reviewing your settings can help ensure you're still on the right path.