The September quarter was another positive quarter as shares and bonds both benefited from a number of factors including continued optimism with regards to the development of a covid-19 vaccine, economic recovery and further possible supportive measures from various governments around the world. However, concerns about the likelihood of fiscal stimulus (or spending) from the USA government weighed on sentiment toward the end of the quarter.
The health situation and government stimulus are two very important factors that could influence future returns.
The pandemic has blown the global economy into a very unfamiliar place. Government budget deficits have mushroomed and public debt ratios have surged. Despite this, interest rates have fallen, remain low and many share prices have soared.
With so much uncertainty around, we remain cautious with all our investment activity. We expect that asset prices will remain volatile (i.e. go up and down) in the short term but that returns should be positive over the longer term.
Investment returns (before tax and fees) for the quarter ending 30 September 2020 are:
| Fund | 3 months | 1 Year (p.a.) | 3 years (p.a.) | 5 years (p.a.) | 10 years (p.a.) |
| Growth Fund | 3.2% | 5.1% | 9.2% | 9.6% | 8.7% |
| Balanced Fund | 2.6% | 4.7% | 7.4% | 7.9% | 7.5% |
| Income Fund | 1.2% | 3.7% | 4.0% | 4.2% | 4.5% |
Not already a member of Christian KiwiSaver Scheme? Join other like-minded Kiwi Christians growing their savings ethically today!
