Welcome to your October update
Resilient markets reward patient investors
September was another reminder that markets can continue to perform well even when facing challenges.
Investors navigated rising interest rates, renewed tensions in the Middle East, and ongoing inflation pressures during the month. Despite this, strong company earnings and continued investment in technology and artificial intelligence (AI) helped global share markets push higher.
For KiwiSaver investors, it was a reminder that staying invested and maintaining a long-term focus can be just as important as the market conditions themselves.
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Performance data
Performance as at 30 September 2026.
|
Fund Option |
1M |
1Y |
5Y pa |
10Y pa |
|
Focused Growth Fund |
2.85% |
17.59% |
N/A |
N/A |
|
High Growth Fund |
0.71% |
12.73% |
9.65% |
10.14% |
|
Lifestages Aggressive Option |
1.03% |
13.49% |
9.88% |
10.32% |
|
Lifestages Growth Option |
0.39% |
10.05% |
8.03% |
8.51% |
|
Lifestages Balanced Option |
-0.14% |
6.91% |
6.23% |
6.71% |
|
Lifestages Moderate Option |
-0.40% |
4.49% |
4.54% |
4.97% |
|
Lifestages Conservative Option |
-0.53% |
3.29% |
3.71% |
3.87% |
|
Income Fund |
-1.42% |
-1.48% |
0.95% |
1.33% |
|
Cash Fund |
0.21% |
2.51% |
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?
The September quarter highlighted how resilient markets can be, even in the face of rising interest rates, geopolitical tensions and inflation concerns.
The conflict in the Middle East pushed oil prices higher, while many central banks continued raising interest rates. At the same time, the United States remained a key driver of global growth, supported by strong business investment, continued spending on AI infrastructure, and an improving labour market.
This combination of resilient economic growth and strong company earnings helped global share markets reach new highs over the quarter.
Bond markets faced a more challenging environment. Rising interest rates and inflation concerns pushed bond yields higher, leading to weaker returns across many fixed interest investments.
What happened in our funds?
High Growth Fund
The High Growth Fund returned +0.71% for September.
Global shares were the main driver of performance, supported by a weaker New Zealand dollar and continued strength in technology and healthcare companies.
Some of the strongest contributors included Meta (+32.8%), Micron (+16.4%), TSMC (+15.4%), Thermo Fisher (+14.7%), Lam Research (+14.3%), ASML (+11.9%), GE Vernova (+10.8%), CSL (+10.6%) and Apple (+10.1%).
Focused Growth Fund
Technology-related companies once again led performance during September.
Meta (+32.9%), Taiwan Semiconductor Manufacturing Company (TSMC) (+15.4%), Apple (+10.1%), Nvidia (+8.5%) and Alphabet (+6.3%) were among the strongest performers.
Income Fund
The Income Fund experienced negative returns during September as rising interest rates continued to put pressure on bond markets.
New Zealand bond investments performed better than global bond investments, while shorter-dated bonds held up better than longer-dated bonds.
Cash Fund and Lifestages Options
The Cash Fund delivered a positive return during September, benefiting from higher interest rates and its shorter-term investments.
The Lifestages Options delivered mixed results during the month, reflecting the different allocations to growth, income and cash investments across each option.
What this means for you
Staying focused on the long term
September showed that markets can continue to perform well even when facing uncertainty.
While headlines were dominated by rising interest rates, inflation and geopolitical events, strong company earnings and resilient economic growth continued to support investment markets.
For KiwiSaver investors, it's another reminder that short-term market events rarely tell the full story. Staying invested, remaining diversified and focusing on your long-term goals continues to be the most effective approach for most investors.
Three simple ways to stay on track
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Focus on the bigger pictureMarkets will experience periods of uncertainty, but long-term investment outcomes are built over years, not months. |
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Stay diversifiedDifferent investments perform differently at different times. Diversification helps reduce reliance on any single investment or sector. |
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Keep contributing consistentlyRegular contributions and a long-term mindset often have a greater impact than trying to predict market movements. |
We're here to help
Got a question or want to talk through your options? Our team is here to help. Whether you're just getting started or would like some guidance, we're only a phone call or email away. You can also book a time to chat with us below.