Welcome to your September update
Dear member, welcome to the SBS Wealth KiwiSaver Scheme Investor Update for September 2025. Below you will find the latest performance data and market commentary from your SBS Wealth Investment Management Team.
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Performance data
Performance as at 31 August 2025.
| Fund Option | 1M | 1Y | 5Y pa |
| Focused Growth Fund | 0.77% | n/a | n/a |
| High Growth Fund | 2.23% | 11.75% | 9.85% |
| Auto 0-49 Option | 2.01% | 11.52% | 9.89% |
| Auto 50-54 Option | 1.83% | 10.02% | 8.10% |
| Auto 55-59 Option | 1.57% | 8.41% | 6.29% |
| Auto 60-64 Option | 1.22% | 6.68% | 4.46% |
| Auto 65+ Option | 1.04% | 5.82% | 3.37% |
| Income Fund | 0.59% | 3.24% | 0.80% |
| Cash Fund | 0.30% | n/a | n/a |
The Lifestages Auto Options invest in combinations of the SBS Wealth Focused Growth Fund, the SBS Wealth High Growth Fund, the SBS Wealth Income Fund, and the SBS Wealth 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.
Performance is shown after fees and before tax. For more information about how performance is calculated and more performance periods, click here.
Market Update
Equity markets continue to climb, reaching new highs. For example, the US market represented by the S&P 500 Index posted five new closing highs during August. Catalysts for this are strong corporate earnings, moderating inflation, and the promise of lower interest rates. Similarly in fixed interest, investment-grade credit (SBS Wealth only invests in investment-grade or higher fixed income) posted solid gains, propelled by the number of companies whose earnings beat analyst estimates.
US markets were buoyed by the anticipation of the Federal Reserve (Fed) Chair Jerome Powell cutting interest rates in mid-September. This is on the back of a weakening labour market. The main benefactor of this was small sized companies, reversing some losses earlier in 2025, while the mega cap stocks had a much quieter month.
The Healthcare sector turned around a tough first six months of 2025 to post returns over 5% for August. Returns were boosted by investors responding to attractive valuations and some favourable company-specific news.
The High Growth Fund returned 2.23% for August and 11.75% for the last twelve months. The Fund saw a big rebound in several of its Healthcare stocks, with United Health Group +24.2%, Novo Nordisk up +21.6%, AstraZeneca +10.1%, and Johnson & Johnson +8.4%. Other companies to perform well in August were Japanese stocks Sony +13.2%, and Toyota +8.8%, Apple +12%, Alphabet +11%, and The Home Depot +10.7%.
Domestically, the market overall was flat, however there were some big winners and losers stock specifically. The standouts being Westpac Bank +16.1%, Chorus +12.7%, Fortescue +10.5%, Freightways +9.1%, Wesfarmers +8.9% and Australian small cap companies in general. The Healthcare sector struggled with EBOS Group –20.3%, CSL -20.1%, Xero –8.1% and Woolworths –7%.
The allocation to Emerging Markets also added value during August.
The Income Fund returned +0.59% for August, benefiting from lower interest rates in New Zealand, a steeper yield curve, and steady income globally.
The Focused Growth Fund returned 0.77% for August. Stock returns were mixed, with 9 of the 16 stocks going backwards. In general, the higher allocation to Technology stocks detracted return for the month. Apple +12%, Alphabet +11%, AstraZeneca +10.1%, and Toyota +8.8% were the standouts.
The Cash Fund returned +0.30% for August, achieving a slight increase in return through lower interest rates.
