Fund watch
How has each SIL fund performed?
| SIL Mutual Scheme Performance as at 31 March 2023 |
3 months (%) |
1 year (%) |
3 years (% p.a.) |
5 years (% p.a.) |
10 years (% p.a.) |
| SIL Cash Plus Fund | 1.13% | 2.96% | 1.32% | 1.56% | 1.98% |
| SIL Balanced Plus Fund | 5.07% | -4.04% | 8.18% | 5.73% | 7.28% |
| SIL New Zealand Fixed Interest Fund | 2.31% | -1.81% | -2.43% | 0.61% | 1.94% |
| SIL New Zealand Share Fund | 3.95% | -1.77% | 5.97% | 7.63% | 10.30% |
| SIL International Share Fund | 8.77% | 3.01% | 12.85% | 10.04% | 11.66% |
Performance is after annual fund charges and before tax.
International equity markets shrugged off the banking concerns in the US and Europe, and ongoing fears the global economy could be headed for a recession, to finish the quarter mostly higher.
After underperforming in 2022, US equity markets were some of the best performing over the quarter, led by the technology sector that benefited from falling bond yields. The tech sector’s outperformance saw the NASDAQ 100 Index rise by more than 20%. Meanwhile, lower oil prices saw energy stocks out of favour, while the banking worries weighed on financials. In spite of this, the broader S&P 500 Index recorded a 7% gain.
Continental European share markets had a good quarter, helped in part by a warmer winter that meant the energy crisis did not materialise as feared. Despite a late-quarter sell-off, the Euro Stoxx 50 Index still recorded a 13.7% gain.
Against the backdrop of a good start to 2023, the SIL International Share Fund returned 8.77%.
New Zealand equities were mostly higher to start the year, but underperformed most global counterparts with a further interest rate hike and uncertainty surrounding the economic impact of Cyclone Gabrielle tempering sentiment. Furthermore, consumer and business sentiment continued to wane as inflation pressures persisted.
Nevertheless, the NZX 50 still delivered a solid 3.6% return, while the SIL New Zealand Share Fund rose 3.95%.
In fixed interest markets, New Zealand bonds had a relatively good start to the year, despite the Reserve Bank of New Zealand (RBNZ) lifting the Official Cash Rate (OCR) to a 15-year high of 4.75%. They mainly took their lead from offshore moves, notably the banking failures in the US and the takeover of Credit Suisse, which saw investors flock to safe haven assets like government bonds. The SIL New Zealand Fixed Interest fund returned 2.31%. Meanwhile, cash delivered stable and positive returns, with the SIL Cash Plus Fund up 1.13%.
The SIL Balanced Plus Fund has around 65% of its holdings in growth investments, such as international shares, with the remaining 35% in income investments, and with both assets classes having a good start to the year, the fund delivered a 5.07% return over the quarter.
This article has been prepared by ANZ New Zealand Investments Limited (‘ANZ Investments’) for information purposes only and it should not be treated as financial advice.
Superannuation Investments Limited is the issuer and manager of the SIL Mutual Scheme. ANZ Investments is not an authorised deposit taking institution (ADI) under Australian law and investments in the scheme aren't deposits in or liabilities of ANZ Bank New Zealand Limited, Australia and New Zealand Banking Group Limited, or their subsidiaries (together 'ANZ Group'). ANZ Group doesn’t stand behind or guarantee ANZ Investments. Investments in the scheme are subject to investment risk, including possible delays in repayment, and loss of income and principal invested. ANZ Group won’t be liable to you for the capital value or performance of your investment.
Past performance does not indicate future performance, and performance can be negative as well as positive. This material is for information purposes only. We recommend seeking financial advice about your situation and goals before getting a financial product.
Investment and administration manager: ANZ New Zealand Investments Limited.