Fund watch
How has each SIL fund performed?
| SIL Mutual Scheme Performance as at 30 June 2023 |
3 months (%) |
1 year (%) |
3 years (% p.a.) |
5 years (% p.a.) |
10 years (% p.a.) |
| SIL Cash Plus Fund | 1.26% | 3.93% | 1.62% | 1.70% | 2.04% |
| SIL Balanced Plus Fund | 2.25% | 7.97% | 5.41% | 5.34% | 7.46% |
| SIL New Zealand Fixed Interest Fund | -0.65% | -0.01% | -3.71% | 0.28% | 2.10% |
| SIL New Zealand Share Fund | -0.57% | 9.28% | 0.41% | 5.75% | 10.11% |
| SIL International Share Fund | 6.71% | 17.98% | 11.47% | 9.93% | 11.64% |
Performance is after annual fund charges and before tax.
Following a hesitant start, it was another good quarter for equity investors. US markets were some of the best-performers, led by the tech-heavy NASDAQ 100 Index, which delivered strong double-digit gains. The sector did well thanks to strong results from market heavyweights Alphabet, Meta and NVIDIA Corp, and on the expectation that artificial intelligence (AI) trends may boost these companies’ future earnings. Against this backdrop, the SIL International Share Fund returned 6.71% over the quarter.
In contrast to their overseas counterparts, New Zealand equities had a more challenging time. The NZX 50 Index was hampered by further rate hikes from the Reserve Bank of New Zealand (RBNZ), confirmation that New Zealand had entered a recession, and weak forward guidance from some of New Zealand’s largest companies, such as Fisher & Paykel Healthcare and Mainfreight. Most companies delivered negative returns, with the best performance coming from the information technology sector. The weakness in the local market saw the SIL New Zealand Share Fund fall 0.57% over the quarter.
New Zealand bonds also had a tough quarter, taking their lead from international bonds, but also reacting to a further 0.75% of interest rate hikes from the RBNZ. While the prospect of rates having peaked should have been good for the local bond market, investor sentiment was dampened by a somewhat stimulatory Budget announcement. This saw the government announce higher-than-expected spending, meaning government bond issuance also needed to rise. Over the quarter the SIL New Zealand Fixed Interest Fund fell 0.65%. Meanwhile, cash continued to deliver stable and positive returns, with the SIL Cash Plus Fund up 1.26%.
Finally, 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. The strong performance of international shares meant the fund delivered a 2.25% gain 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