Welcome to our quarterly investment wrap-up. In this edition we discuss what went well in the markets over the last quarter, what captured the attention of our investment team, and we share insights into some of the actions the investment team took in the portfolios.
What went well in the September quarter?
- Interest rates came down – Over the quarter, the Reserve Bank cut the Official Cash Rate to 2.5 %, easing pressure on mortgage holders and lowering borrowing costs for households and businesses.
- Global inflation cooled – Global inflation eased in September 2025, boosting investor confidence and encouraging growth through lower energy and food costs.
- Exports stayed solid – Demand for our dairy, meat, and timber products remained strong overseas, supporting the wider New Zealand economy.
- Share markets lifted – Local and global share markets rose through the quarter, boosted by lower interest rates and improved investor confidence.
- Housing confidence returned – With borrowing costs easing, more buyers returned to the market, helping to stabilise house prices.
What captured our attention?
- Living costs rose – Inflation rose to 3% in the September quarter, the highest since June 2024, when it was at 3.3%, keeping pressure on household living costs.
- Wage growth lagged inflation – Despite a tight labour market, average wages didn’t keep pace with rising living costs.
- Tech shares looking stretched – After big gains, investors watched to see if tech company earnings could justify high prices.
- Households still under debt pressure – Heavily-mortgaged households were still affected by small rate movements or job changes.
- Recent U.S. tariff shifts eased slightly – Ongoing trade uncertainty continued to weigh on global supply chains and export-driven economies like New Zealand, but to a lesser extent than in previous quarters.
Market Commentary
The September quarter was a mix of steady improvement and quiet caution. The Reserve Bank’s rate cut to 2.5% gave borrowers some breathing space and signalled that monetary policy is shifting to support growth. Share markets responded positively, while bond markets benefited from expectations of further easing.
Globally, technology and infrastructure companies continued to perform well, and international share funds carried that strength through to local KiwiSaver results. Conservative and balanced funds also recovered modestly as bond prices stabilised.
Closer to home, inflation continues to ease but remains a focus, and the economy is still soft. For KiwiSaver members, the main takeaway is that diversification pays off. Staying invested through changing conditions allows portfolios to capture upswings when they come. This quarter was a good example of that.
Tip for members:
If you haven’t checked your fund type lately, this is a good time to do it. Make sure your investment choice for your Christian KiwiSaver Scheme or Retire Fund account still matches your goals and timeframe.
Changes to your portfolio
In the September quarter, our investment team made a meaningful change to the portfolios by including the LGT Crown Impact Fund to our list of private equity investments. This fund:
This addition allows us to expand our private equity holdings while deepening our commitment to impact investing, supporting our dual goals of delivering returns to members and contributing to positive change in the world.
What is impact investing?
Impact investing is an approach that seeks both financial returns for investors, and measurable positive outcomes for society or the environment. These investments support companies working to solve global challenges, such as climate change, poverty or inequality, healthcare and education, sustainable agriculture and clean energy.
Because many of these companies are privately held, it can be difficult for everyday investors to participate in the good they are doing. Funds like the LGT Impact Fund give us a way to participate in their growth while staying true to our ethical investment principles.
The fund also enhances diversification by adding exposure to emerging sectors that may behave differently to other sectors when markets shift.
As fund managers, impact investing allows us to use capital as a force for good, amplifying our values while delivering gains to our members.
The New Zealand Anglican Church Pension Board trading as Anglican Financial Care is the manager and issuer of Christian KiwiSaver Scheme, The Retire Fund and The New Zealand Anglican Church Pension Fund. Product Disclosure Statements and Fund Updates are available on the Documents page of the AFC website (Pension Fund and The Retire Fund) and https://christiankiwisaver.nz/documents/ (Christian KiwiSaver Scheme).
