Fund watch
How has each SIL fund performed?
| SIL Mutual Scheme Performance as at 30 September 2023 |
3 months (%) |
1 year (%) |
3 years (% p.a.) |
5 years (% p.a.) |
10 years (% p.a.) |
| SIL Cash Plus Fund | 1.37% | 4.72% | 2.05% | 1.87% | 2.13% |
| SIL Balanced Plus Fund | -3.19% | 7.59% | 2.81% | 4.13% | 6.71% |
| SIL New Zealand Fixed Interest Fund | -1.73% | -0.13% | -5.10% | -0.31% | 2.04% |
| SIL New Zealand Share Fund | -4.78% | 2.67% | -1.61% | 3.79% | 8.78% |
| SIL International Share Fund | -3.37% | 11.38% | 7.77% | 7.95% | 11.00% |
Performance is after annual fund charges and before tax.
After a good first half of 2023, US equity markets retreated in the third quarter with the S&P 500 Index falling 3.3% and the NASDAQ 100 Index, which has a larger exposure to technology shares, falling 3.9%. Their declines came as the Federal Reserve (the Fed) delivered one more rate hike, and projections showed the possibility of one more later this year. Against this backdrop, the SIL International Share Fund fell 3.37% over the quarter.
Following their global counterparts, New Zealand equities were lower over the quarter with the NZX 50 Index falling 5.2%. The index reached its lowest level of the year, making New Zealand equities one of the weaker performing of 2023. New Zealand shares have underperformed as inflation has remained elevated, raising the possibility that interest rates would be higher for longer. The weakness in the local market saw the SIL New Zealand Share Fund fall 4.78% over the quarter.
New Zealand bonds were also lower over the quarter, which pushed bond yields to multi-year highs. Bonds came under pressure after the RBNZ raised its terminal rate, which suggests there may be one more interest rate hike later this year. Over the quarter the SIL New Zealand Fixed Interest Fund fell 1.73%. Meanwhile, cash continued to deliver stable and positive returns, with the SIL Cash Plus Fund up 1.37%.
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, such as bonds. The weakness across most asset classes saw the fund fall 3.19%.
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