CEO Update
As the first quarter of 2024 rapidly draws to a close, the markets have sustained their positive performance from the previous year. Our Lifestages KiwiSaver High Growth Fund concluded 2023 leading the pack in the Morningstar* aggressive category, achieving a remarkable 19.89% return over the 12 months, ranking second over a three-year period and fourth over five years as of December 31, 2023. This trend of outperformance has persisted into 2024, with our High Growth Fund registering monthly returns of 1.97% in January and 3.74% in February.
And now you can access the same outstanding investment management through our recently launched Lifestages Investment Funds product. Just like Lifestages KiwiSaver Scheme, you can choose your mix of investments from across our World Bond, Australasian Equity, and World Equity portfolios. It’s easy to sign up online and you can start from as little as $500 – perfect for saving for a university fund or your dream family holiday. Find out more on our website.
I would also like to take this opportunity to introduce you to our new Chief Client Officer, Dennis Edel. Dennis joined SBS Wealth during February and brings with him over 30 years of experience in the financial services industry.
At SBS Wealth, we are passionate about making financial advice widely available, and Dennis will be responsible for the delivery of our investment advice proposition to you, our clients. Whether you're saving for your first home, dreaming of your next overseas trip, or preparing for a well-earned retirement, our team of expert advisers are here to support you. We encourage you to reach out to our advice team, who are eager and ready to assist you. Simply book a time here.
Morne Redgard
CEO
*Performance data is sourced from the December Quarter 2023 Morningstar KiwiSaver Survey and is stated after management fees and before tax.
Performance Data
The Lifestages Auto Options invest in combinations of the Lifestages High Growth Fund and the Lifestages Income 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 into the funds based on your age.
Performance as at 29 February 2024.
| Fund Option | 1M | 1Y | 5Y pa |
| High Growth Fund | 3.74% | 19.99% | 8.73% |
| Auto 0-49 Option | 3.74% | 19.99% | 8.73% |
| Auto 50-54 Option | 2.92% | 16.81% | 7.22% |
| Auto 55-59 Option | 2.10% | 13.65% | 5.62% |
| Auto 60-64 Option | 1.29% | 10.54% | 3.99% |
| Auto 65+ Option | 0.88% | 9.01% | 2.92% |
| Income Fund | -0.34% | 4.50% | 0.67% |
Performance figures in the table above for the 5-year returns show that investment markets, as a whole, have bounced back from the Covid turmoil of early 2020, and have now gone on to record highs in several markets.
For more information about how performance is calculated and more performance periods, click here.
Market Update
Overall, the High Growth Fund and all the Lifestages Auto profiles benefitted from the strong global sharemarkets (evidenced in the tables to the left).
February was another good month for equity markets, with the United States still leading the way. With a consistent tailwind of interest in artificial intelligence and generally better than expected Q4 earnings, mega-caps continued to show strength (Nvidia +30%, Meta +27%, Amazon 15%, all major holdings within the Scheme). The big news for the month was the earnings report from Nvidia (the largest semiconductor producer in the US). And the report did not disappoint, sending its share price up even further (+75% ytd).
The Scheme also benefitted from its exposure to the electric vehicle theme. Toyota, through its hybrid fleet, was up 22% and Schneider Electric, EV charging platform and digital automation, up 15%.
One of the few sharemarkets to fall in February was our own domestic market. This was led by Fletcher Building, which had a material downgrade of its Q4 earnings outlook, announced exiting its Tradelink business in Australia, and followed by the CEO and Chair stepping down. Property companies, Mainfreight, and Spark also fell over the month.
The performance of the domestic markets has been more than offset by the record highs in the United States and the strong technology sector. This shows the power of geographical and sector diversification working for our members.
Interest rates edged higher, as most central banks left their official cash rate untouched. This led to a small negative return for the Income Fund.
We're making a bit of noise
It might come as a surprise to you as a member, but not everyone has heard of SBS Wealth! And when it comes to our Lifestages High Growth Fund and its great returns, well, it seems we’ve been one of KiwiSaver’s best kept secrets. But we think it's high time everyone knew just what they’re missing out on.
So, we’re making a bit of noise to let everyone know about the best kept secret in KiwiSaver...which probably means this is the last time we can refer to ourselves as a ‘secret’.
Keep your eyes peeled and your ears open. Whether you’re tuning into the radio during your morning commute, catching up on your favourite YouTube channels, or simply browsing the web, you’re going to see and hear more about us.
We’re on a mission to not just grow your wealth, but to also grow our family. And we believe that by spreading the word about the value we’ve been creating for our members, we can welcome even more people into our fold. So, watch this space, and maybe let your friends and family in on the secret too. After all, secrets this good are meant to be shared.
Stay tuned, and here’s to making our ‘secret’ everyone's success story!