Investor update

SBS Wealth Investment Funds - October 2026

Welcome to your October update

Strong earnings support another positive quarter

Global share markets continued to perform well through September, supported by resilient economic growth and strong company earnings.

While rising interest rates created challenges for bond markets, positive returns from shares helped support investment outcomes across many portfolios.

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Performance data

Performance as at 30 September 2026.

Fund Option	1M	1Y	5y pa	10Y pa
High Growth Strategy	0.79%	11.91%
Growth Strategy	0.35%	9.17%
Balanced Strategy	-0.10%	6.45%
Conservative Strategy	-0.79%	2.37%
World Equity Portfolio	1.05%	15.05%	11.43%	12%
Australasian Equity Portfolio	0.03%	2.78%	2.06%	5.83%
World Bond Portfolio	-1.79%	-2.46%	-0.42%	0.62%
New Zealand Bond Portfolio	-0.88%	-2.74%	-0.42%	0.62%

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

What happened in the markets?

September highlighted the ongoing strength of global share markets.

Strong earnings growth, particularly across technology and energy companies, helped offset concerns around inflation, geopolitical tensions and further interest rate increases.

Developed markets outperformed emerging markets, led by Japan and the United States. In the US, the S&P 500 reached several record highs during the quarter as earnings growth remained strong.

Bond markets faced a more difficult environment. Rising government borrowing, continued corporate debt issuance and expectations of higher interest rates combined to push yields higher and prices lower.

What happened in our funds?

World Equity Portfolio

The World Equity Portfolio benefited from strong global equity market returns.

Technology and healthcare companies were among the strongest contributors, while developed markets outperformed emerging markets.

Top performers included Meta (+32.9%), Micron (+16.4%), TSMC (+15.4%), Thermo Fisher (+14.7%), Lam Research (+14.3%), ASML (+11.9%), GE Vernova (+10.8%) and Apple (+10.1%).

Australasian Equity Portfolio

The New Zealand market experienced a softer month and a relatively flat quarter as rising interest rates weighed on sectors such as utilities and property.

Australian shares benefited from a weaker New Zealand dollar and strong performances from healthcare and energy companies.

Standout performers included QBE (+6.7%), Mercury (+6.4%), ASX (+5.7%), Telstra (+5.2%) and CSL (+10.6%).

World Bond Portfolio

The World Bond Portfolio experienced a challenging quarter as rising interest rates and inflation concerns continued to weigh on returns.

Longer-dated bonds were particularly affected, while higher government borrowing and corporate debt issuance increased competition for investor capital.

New Zealand Bond Portfolio

The New Zealand bond market also delivered negative returns during September.

The Reserve Bank raised the Official Cash Rate by 0.25%, contributing to higher bond yields and lower prices. Corporate bonds performed slightly better than government bonds due to their shorter duration.

Investment Strategies

Investment Strategies benefited from positive returns in global shares, which helped offset weaker fixed interest performance.

The quarter demonstrated how diversification across different investment types can help smooth outcomes when markets are moving in different directions.

What this means for you

Looking beyond short-term market noise

September provided another example of why diversification matters.

While bond markets faced pressure, global equities continued to perform strongly. Different investments will lead and lag at different times, and a diversified portfolio is designed with exactly this in mind.

For long-term investors, remaining focused on your investment goals is often more important than reacting to short-term market events.

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 are still on the right path.