Investor update

SBS Wealth KiwiSaver Scheme - 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 KiwiSaver.

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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Looking beyond the month-to-month movements

July saw different parts of the market pulling in different directions. Some of the technology companies that had driven strong returns earlier in the year lost ground, while other sectors and regions delivered positive results.

For KiwiSaver members, it's a useful reminder that short-term movements are normal, and long-term outcomes are built over years rather than months.

Performance data

Performance as at 31 July 2026

Fund Option	1M	1Y	5Y pa	10Y pa
Focused Growth Fund	0.52%	20.32%	N/A	N/A
High Growth Fund	-1.88%	16.18%	9.10%	9.82%
Auto 0-49 Option	-1.52%	16.83%	9.30%	9.99%
Auto 50-54 Option	-1.60%	13.35%	7.61%	8.28%
Auto 55-59 Option	-1.56%	10.14%	5.96%	6.57%
Auto 60-64 Option	-1.28%	7.32%	4.37%	4.89%
Auto 65+ Option	-1.13%	5.93%	3.58%	3.82%
Income Fund	-1.08%	1.42%	1.08%	1.43%
Cash Fund	0.17%	2.65%	N/A	N/A

The Lifestages Options invest in combinations of the SBS Wealth KiwiSaver Scheme Focused Growth Fund, High Growth Fund, Income Fund and Cash 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 in the funds based on your age.  

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

What happened in the markets?

Investors were balancing a range of factors, including uncertainty in the Middle East, changing expectations around interest rates, and questions about whether some of the technology and AI-related companies that have driven recent market growth could continue that momentum.

US markets were more volatile during the month, although confidence improved later as several large technology companies reported strong earnings and inflation expectations appeared to ease.

Europe was one of the stronger-performing regions, particularly the UK, supported by gains across sectors such as Energy, Financials and Communication Services.

Bond investments had a tougher month, as investors increasingly expected interest rates to stay higher for longer.

What happened in our funds?

High Growth Fund

The High Growth Fund experienced more ups and downs than usual during July as investors reassessed the outlook for technology and AI-related companies.

Our New Zealand shares were roughly flat over the month, while the Australian shares experienced a slight drawdown, leading to a net negative result in the Australasian segment. Global shares also lost some steam during the month but delving deeper, several companies did very well across these markets - Microsoft (+20.6%), Sony (+14.1%) and Amazon (+10.3%) from Global and Mainfreight (+13.65%), EBOS (+5.8%) and Commonwealth Bank of Australia (+5.7%) from Australasia.

Overall, the fund was down –1.9%.

Focused Growth Fund

The Focused Growth Fund managed a positive result for July, ending slightly up +0.5%.

Several holdings benefited from strong company earnings and positive investor sentiment, while others were affected by slowing momentum for AI-related stocks.

Microsoft returned 20.6%, Amazon 10.3%, Toyota 11.2%, and JP Morgan 4.5%. Meanwhile, TSMC was down 18%, Eli Lilly 7.3%, and Meta 4.3%.

Income Fund

The Income Fund was down –1.1% for the month.

This was largely due to rising interest rate expectations, which put pressure on bond investments. While this can affect short-term returns, higher interest rates can also create opportunities for future income and returns.

Cash Fund and Lifestages Options

The Cash Fund returned +0.17% for July.

The Lifestages Options experienced mild drawdowns during the month, reflecting the mixed performance across different parts of global markets.

What this means for you

Staying focused on the long term

July was a good example of why KiwiSaver should be viewed as a long-term investment.

Some parts of the market performed well, while others experienced a pullback. That's normal. Markets regularly move through periods where different sectors, regions and investment types take turns leading returns.

Trying to react to every market movement can often do more harm than good. For most KiwiSaver members, staying invested and focusing on long-term goals remains the best approach.

Three simple ways to stay on track

Don't let short-term market movements distract you

KiwiSaver is designed to help you build wealth over many years. Short-term market swings are a normal part of that journey.

Check your fund still suits your goals

As your circumstances change, it's worth reviewing whether your current KiwiSaver investment profile still matches your goals, timeframe and comfort with risk.

Focus on what you can control

Regular contributions, a long-term mindset and being in the right fund for your circumstances can have a much bigger impact than trying to predict market movements.