Fund watch
How has each SIL fund performed?
| SIL Mutual Scheme Performance as at 30 September 2022 |
3 months (%) |
1 year (%) |
3 years (% p.a.) |
5 years (% p.a.) |
10 years (% p.a.) |
| SIL Cash Plus Fund | 0.61% | 1.18% | 0.85% | 1.37% | 1.89% |
| SIL Balanced Plus Fund | -2.85% | -13.15% | 1.71% | 4.55% | 7.42% |
| SIL New Zealand Fixed Interest Fund | -1.62% | -9.24% | -3.31% | 0.53% | 1.83% |
| SIL New Zealand Share Fund | 1.35% | -18.55% | 0.80% | 6.68% | 10.99% |
| SIL International Share Fund | 2.37% | -7.92% | 6.21% | 9.32% | 12.02% |
Performance is after annual fund charges and before tax.
International equity markets struggled during the third quarter as the world’s central banks ratcheted up their fight against inflation by raising interest rates aggressively. That’s because rapidly rising interest rates have the potential to slow global growth – since they can impact consumer and business confidence, falling demand for goods and services, and, ultimately, declining company earnings and profits. That being said, the weak performance of the New Zealand dollar boosted returns for investors in overseas markets, so against this backdrop, the SIL International Share Fund rose by 2.37% over the quarter.
New Zealand equities held up reasonably well, despite further rate hikes from the Reserve Bank of New Zealand (RBNZ). Rising interest rates can prove to be a headwind for more defensive indices such as the NZX 50. Energy companies were the better performers, while consumer discretionary companies struggled – perhaps a sign that consumers were pulling back their spending amid a worsening outlook of the domestic economy. Over the quarter the SIL New Zealand Share Fund rose 1.35%.
Bond markets had a particularly tough time. That’s because bond markets tend to underperform when interest rates are rising quickly – and the RBNZ continued in its mission to get on top of inflation by raising the Official Cash Rate (OCR) by a further 100 basis points. Over the quarter, this meant the SIL New Zealand Fixed Interest Fund fell 1.62%. Meanwhile, cash delivered stable and positive returns, with the SIL Cash Plus Fund up 0.61%.
The SIL Balanced Plus Fund has a slightly over 65% weighting to growth investments, such as international shares, with the remaining ~35% invested in income investments, such as bonds and cash. Holding back returns this quarter was some weaker performances from our Australian equities, international listed infrastructure and international bond managers. The fund fell 2.85%.
This article has been prepared by ANZ New Zealand Investments Limited 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. Investments in the scheme are not deposits in ANZ Bank New Zealand Limited, Australia and New Zealand Banking Group Limited or their subsidiaries (together ANZ Group), nor are they liabilities of ANZ Group. ANZ Group does not stand behind or guarantee the obligations of ANZ New Zealand Investments Limited or Superannuation Investments Limited. Investments are subject to investment risk, including possible delays in repayment, and loss of income and principal invested. ANZ Group will not be liable to you for the capital value or performance of your investment. Your investment in the scheme is not guaranteed by ANZ Group, Superannuation Investments Limited, any of their directors or any other person.
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