Investor update

SBS Wealth KiwiSaver Scheme - September 2026

Welcome to your September update

A positive month for KiwiSaver investors

August saw global share markets move higher, supported by strong company earnings and continued investment in technology and AI infrastructure.

While investors continued to keep a close eye on interest rates, inflation and global events, the overall result was a positive one for KiwiSaver members. Following a softer July, August was a timely reminder that markets can recover quickly and why staying focused on the long term remains important.

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Patience and skin in the game were rewarded in August

Equity markets rebounded in August following continued strong corporate earnings out of US companies, driven in large part by Tech companies. Bond markets were volatile, but our diversification saw the fixed interest funds return flat results overall.

Following the dip in July, KiwiSaver members were once again taught the value of patience and remaining invested.

Performance data

Performance as at 31 August 2026.  

Fund Option	1M	1Y	5Y pa	10Y pa
Focused Growth Fund	0.86%	20.43%	N/A	N/A
High Growth Fund	1.81%	15.70%	8.98%	10.09%
Lifestages Aggressive Option	1.67%	16.44%	9.14%	10.24%
Lifestages Growth Option	1.39%	12.86%	7.52%	8.50%
Lifestages Balanced Option	1.07%	9.59%	5.91%	6.76%
Lifestages Moderate Option	0.73%	6.80%	4.36%	5.03%
Lifestages Conservative Option	0.56%	5.42%	3.61%	3.94%
Income Fund	-0.04%	0.79%	1.13%	1.49%
Cash Fund	0.24%	2.59%	N/A	N/A

The Lifestages Options invest in combinations of the SBS Wealth KiwiSaver Scheme Focused Growth Fund, High Growth Fund, Income Fund and Cash Fund, in proportions that vary in accordance with pre-selected age bands. These options automatically adjust the risk profile of your investment by altering the proportions invested in the funds based on your age.  

For more information about how performance is calculated and for more performance periods, click here.  

What happened in the markets?

Investors remained focused on the outlook for interest rates, inflation and economic growth, while also assessing the sustainability of strong corporate earnings that have been delivered by many large technology and AI-related companies. Geopolitical developments, particularly in the Middle East, continued to contribute to periods of market volatility.

Global equity markets generally moved higher during the month, supported by the resilient corporate earnings and ongoing investment in AI infrastructure. Technology stocks were once again among the strongest contributors to returns, although markets became more cautious towards month-end as investors reassessed the possibility that interest rates could remain elevated for longer.

US share markets in particular recorded solid gains, driven by stronger than expected earnings results, and continued optimism around AI-related spending. Investor sentiment was supported by evidence of ongoing economic resilience, although comments from central bank officials later in the month led markets to further set back any expectations of near-term interest rate cuts.

European markets also delivered positive returns, benefiting from improved economic sentiment and broad-based sector strength. Energy companies were supported by firmer commodity prices, while Financials benefited from the prospect of interest rates remaining higher than previously expected.

Fixed interest markets faced headwinds as government bond yields rose. Investors increasingly questioned central bank monetary policy and the path of bond yields, particularly in the longer duration. This ultimately led to some weakness in bond prices and performance for many bond sectors. Higher yields are largely reflective of ongoing inflation concerns and uncertainty around the future path of interest rates.

What happened in our funds?

High Growth Fund

The High Growth Fund produced a good result for August, despite the volatility later in the month.

Our New Zealand shares had strong positive performance for the month, following the overall flat month of July, while Australasian equities were down on the month. Global shares all in all produced a positive result off the back of continually strong corporate earnings reports being released.

Delving deeper, Spark NZ (+11.5%) and Fisher & Paykel Healthcare (+9.1%) were the standout performers domestically. Across the ditch, CSL staged a huge comeback (+41.3%) - within tech, Xero (+20%) also produced an excellent return. Within Global shares, new additions Micron Technology (+15.7%) and Palo Alto Networks (+14.4%) continued to perform well. Laggards were GE Vernova (-9.9%), Broadcom (-5.5%) and Cisco Systems (-5.4%).

Overall, the fund was up +1.81%

Focused Growth Fund

The Focused Growth Fund produced a solid +0.86% for the month of August.

While a handful of names were down for the month, several were either flat or slightly positive, with Nvidia (+9.25%) and Microsoft (+8.6%) being the standout performers.

Income Fund

The Income Fund was flat for the month (-0.04%), with performance being muted by the market driving yields on bonds higher (and prices lower) in relation to questions around the path of interest rates.

Cash Fund and Lifestages Options

The Cash Fund continued to do its job well, producing slow and steady returns for investors in August, returning +0.24% for the month.

The Lifestages Options were all positive for August off the back of the overall positive uplift in our domestic and global shares, and the flat month for the Income Fund.

What this means for you

Staying focused on the long term

August demonstrated again the importance of remaining patient and having skin in the game, following what was overall a negative July.

Momentum returned to domestic and global shares, while Australia experienced a pullback – all normal occurrences in a complex but functioning global market. Our diversification across sectors, industries, and regions helped to smooth the ride and produce an overall good month for KiwiSaver members.

Trying to react to every market movement can often do more harm than good. For most KiwiSaver members, staying invested and focusing on long-term goals remains the best approach.

Three simple ways to stay on track

Don't let short-term market movements distract you

KiwiSaver is designed to help you build wealth over many years. Short-term market swings are a normal part of that journey.

Check your fund still suits your goals

As your circumstances change, it's worth reviewing whether your current KiwiSaver investment profile still matches your goals, timeframe and comfort with risk.

Focus on what you can control

Regular contributions, a long-term mindset and being in the right fund for your circumstances can have a much bigger impact than trying to predict market movements.