Fund watch
How has each SIL fund performed?
| SIL Mutual Scheme Performance as at 30 June 2024 |
3 months (%) |
1 year (%) |
3 years (% p.a.) |
5 years (% p.a.) |
10 years (% p.a.) |
| SIL Cash Plus Fund | 1.40% | 5.70% | 3.39% | 2.39% | 2.38% |
| SIL Balanced Plus Fund | -1.18% | 6.42% | 1.22% | 5.15% | 6.87% |
| SIL New Zealand Fixed Interest Fund | 0.70% | 4.93% | -1.49% | -0.14% | 2.44% |
| SIL New Zealand Share Fund | -3.59% | -1.53% | -2.82% | 2.43% | 7.90% |
| SIL International Share Fund | -3.20% | 8.80% | 5.25% | 9.99% | 11.60% |
Performance is after annual fund charges and before tax.
It was another good quarter for US share markets with most indices trading to record highs, while European markets faced pressure amid geopolitical uncertainty. The gains in the US were helped by ongoing Artificial Intelligence (AI) euphoria, with progress on inflation also boosting sentiment.
Given the strong showing of AI-related companies, the Nasdaq 100 Index was one of the strongest performing markets, up 8.5%, while the broader S&P 500 Index rose 4.3%. Elsewhere, the Euro Stoxx 50 Index fell 2.1% as the French equity market was down 6.6% as President Emanuel Macron called for a snap election. Asian markets were also lower.
The SIL International Share Fund hedges some of its foreign currency exposure, which held back the returns from international equities, and this was further hampered by the poor underlying performance of some of its holdings. Against the backdrop, the SIL International Share Fund fell 3.20% over the quarter.
New Zealand equities were under pressure for most of the quarter as economic data highlighted the ongoing headwinds the domestic economy is facing. The unemployment rate rose to 4.3%, the highest level since mid-2021, business and consumer sentiment remained downbeat, and retail spending data suggested New Zealanders were tightening the screws as the cost-of-living crisis continued. Gross Domestic Product (GDP) figures showed the economy came out of a recession, but on a per capita basis it continued to contract at a material pace. The struggles of the domestic economy saw the SIL New Zealand Share Fund fall 3.59% over the quarter.
It was a better quarter for domestic bonds as interest rate markets continued to price in the possibility of rate cuts for 2024 amid a weakening economy. But despite the ongoing challenges for the economy, the Reserve Bank of New Zealand (RBNZ) maintained its hawkish bias, citing concerns around the elevated level of inflation. For the quarter, the SIL New Zealand Fixed Interest Fund delivered a return of 0.70%, while the SIL Cash Plus Fund rose 1.40%.
Finally, the SIL Balanced Plus Fund has around 65% of its holdings in growth investments, with the remaining 35% in income investments. The fund fell 1.18% over the quarter, hampered by its exposure to international equities.
Fund Watch 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.