Investment returns as of 30 June 2024, before fees and tax
| Growth Fund | Balanced Fund | Income Fund | |||
| 3 months | 1.0% | 0.9% | 0.8% | ||
| 1 Year (p.a.) | 11.1% | 9.3% | 5.2% | ||
| 3 years (p.a.) | 7.2% | 5.0% | 0.9% | ||
| 5 years (p.a.) | 8.7% | 6.4% | 1.7% | ||
| 10 years (p.a.) | 8.7% | 6.9% | 2.8% |
We’re pleased to report that all our funds have shown positive performance this quarter.
While the long-term returns for our Income Fund have been influenced by the low-interest rate environment during the pandemic, we remain committed to navigating these challenges with prudence and care.
Market Insights: Navigating Uncertainty
The current market sentiment is largely optimistic, with many believing that inflation is under control, interest rate reductions are imminent, and corporate earnings will remain robust. This has led to several central banks lowering their official cash rates.
However, we adopt a more cautious stance. While headline inflation is indeed decreasing, central banks remain concerned about ‘sticky’ inflation, which includes factors like council rates, insurance premiums, and energy costs. This type of inflation is less responsive to traditional monetary policies, which could mean that interest rates might not decrease as swiftly as the market anticipates.
We also question whether corporate earnings will meet current expectations. If central banks cut rates aggressively due to economic risks, it could signal underlying vulnerabilities that might affect corporate profitability. Consequently, investors may become hesitant to pay higher prices for anticipated earnings, potentially leading to market corrections.
Our Strategy: Cautious and Diversified
In light of these uncertainties, including geopolitical tensions and domestic growth fluctuations, we remain cautious about the investment return outlook. Our strategy emphasises cautious investment, diversification, and maintaining higher-than-normal cash reserves to help navigate potential market volatility.
At the Christian KiwiSaver Scheme, our priority is to grow your investments responsibly. We continue to monitor market conditions closely, ensuring that our investment decisions align with our commitment to your financial well-being.
Stay tuned for more updates, and as always, thank you for entrusting us with your KiwiSaver investment. Together, we navigate the path to a better financial future.
