What shaped markets, why bonds are back in focus and what’s ahead for KiwiSaver.
Kia ora koutou,
There’s plenty happening for investors at the moment. Markets continue to respond to changing economic conditions and global events, while closer to home the election has put KiwiSaver and long-term saving firmly back in the spotlight.
While things change, the fundamentals of investing don’t need to. Our approach is built on principles that have stood the test of time: Time in the market, diversification and the fees you don’t pay.
It’s encouraging to see long-term saving being discussed in this election. Whatever policies ultimately emerge, helping more New Zealanders build greater financial security is something worth focusing on.
Ngā mihi nui,
Lisa Turnbull
CEO - Smart
A new experience is coming for the SuperLife KiwiSaver Scheme
If you’re a SuperLife KiwiSaver Scheme member, you’ll soon see some changes. The Scheme will become the Smart KiwiSaver Scheme, with a new website and digital experience designed to make managing your KiwiSaver investment simpler.
We’ll share more before anything changes. SuperLife Invest and Workplace Savings investments aren’t changing and will continue under the SuperLife name.
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Investing 101
Investing for income: Bonds are back in focus
After years of very low yields, bonds are offering more income again. For investors seeking income, bonds can provide regular returns while helping diversify a portfolio.
Bond prices and interest rates generally move in opposite directions. When interest rates rise, existing bonds can fall in value; when rates fall, they can rise in value. This means returns from bonds can come from both the income they pay and changes in their value.
For investors seeking income, bonds can provide regular income while also helping diversify a portfolio.
SuperLife offers a range of fixed income options, including the NZ Cash Fund, NZ Bonds Fund, Overseas Bonds Fund, SuperLife Income Fund and Global Aggregate Bond Fund.
It’s not about choosing bonds instead of shares. They play different roles. Shares (including the exposure in our diversified funds and our range of sector funds) can help grow your money over the long term.
Explore SuperLife funds »
Investing involves risk. Bonds are not risk free, and returns will depend on factors including interest rate movements, duration and credit risk. We recommend you seek professional assistance from a licensed Financial Advice Provider before making any investment decision. The latest product disclosure statements for the SuperLife range of schemes are available at superlife.co.nz/legal.
View your statements online anytime
In the SuperLife member portal you can view your account balances, update your personal details, check that your PIR is correct, and download statements and tax information.
Markets at a Glance
What’s moving markets - and what it means for you
Market commentary by Stuart Millar, Chief Investment Officer
There was plenty happening in markets in the quarter ended 30 September. Conflict in the Middle East intensified again, oil prices rose above US$100 a barrel and interest rates moved higher. Despite this, share markets generally continued to rise.
Global shares continued to make gains
US shares were among the stronger performers, supported by company earnings and continued enthusiasm around artificial intelligence. Some of the world’s largest technology companies are investing heavily in AI infrastructure, making it one of the biggest corporate investment cycles seen in decades.
Elsewhere, results were mixed. New Zealand, Australian and European shares made modest gains, while Japan's Nikkei index fell in the quarter. Emerging markets were also mixed, although they remain one of the strongest-performing major asset classes over the past year.
Table 1: Major Asset Class Performance in NZD as at 30 September 2026.
| Asset class | Index | 3-month asset class return | 12-month asset class return |
|---|---|---|---|
| Developed Market Equities (Unhedged) | MSCI World ex Australia Net Total Return USD Index | 2.88% | 18.54% |
| Developed Market Equities (Hedged) | MSCI World ex Australia Net Total Return 100% hedged to NZD DHED | 1.74% | 14.25% |
| Emerging Market Equities (Unhedged) | MSCI Emerging Markets Net Total Return USD Index | 0.40% | 32.66% |
| Australian Equities (Unhedged) | S&P/ASX 200 | 2.25% | 7.82% |
| New Zealand Equities | S&P/NZX 50 Total Return Index | 1.64% | 2.98% |
| Global Infrastructure (Hedged) | FTSE Developed Core Infrastructure 50/50 100% Hedged to NZD Net Tax Index | -7.47% | 2.48% |
| Global Property (Hedged) | FTSE EPRA Nareit Developed ex Aus Rental 100% Hedged to NZD Net Tax Index | -6.60% | 2.48% |
Returns are before fees and taxes. Past performance is not a reliable indicator of future performance. Source: Bloomberg.
New Zealand interest rates rose
Closer to home, the Reserve Bank increased the Official Cash Rate twice during the quarter, taking it to 2.75%. Higher interest rates are increasing borrowing costs for households, although the New Zealand economy has remained resilient, supported by exports, tourism and stronger-than-expected economic growth.
Looking ahead, we expect interest rates will need to rise further, although probably not as much as financial markets currently anticipate. Our base case is for the OCR to settle between 3.5% and 3.75% over the coming years.
Higher yields reshaped the outlook for bonds
Concerns about inflation, higher oil prices and stronger economic growth pushed bond yields higher in New Zealand and overseas.
When yields rise, the value of existing bonds generally falls. This resulted in negative returns across most fixed interest markets over the quarter. The other side of higher yields is that new bonds are now offering investors higher levels of income than they have for some time.
What does this mean for investors?
Markets rarely move together or in a straight line. This quarter, share markets generally rose while bonds, property and infrastructure had a more difficult time. It’s a good example of why diversification matters. Rather than trying to predict which investment will perform best next, spreading your investments across different markets and asset types can help manage the ups and downs along the way.
As always, our focus remains on staying diversified and investing with a long-term view.
Make sure your contact details are up to date
Access your statements and tax certificates online - faster, safer, and all in one place. In the portal you can check your account balances, update your details, set up a direct debit and check if your PIR is right.
Log in to your member portal to update your details so we can send you important updates.
Fund performance
SuperLife KiwiSaver Scheme Diversified Funds as at 30 September 2026
The investment returns shown below are for the specified periods ended 30 September, for a SuperLife KiwiSaver Scheme member (after fund charges and before tax).
SuperLife KiwiSaver Scheme – Investment Returns 30 September 2026
| 30 September 2026 | 30 June 2026 | 31 March 2025 | 30 September 2025 | 30 September 2023 | 30 September 2021 | 30 September 2019 | 30 September 2016 | |
| FUNDS | 1 MONTH | 3 MONTHS | 6 MONTHS | 1 YEAR | 3 YEARS (P.A) | 5 YEARS (P.A) | 7 YEARS (P.A) | 10 YEARS (P.A) |
|---|---|---|---|---|---|---|---|---|
| SuperLife Income | -1.30% | -2.12% | -0.43% | -0.98% | 3.29% | 0.80% | 1.19% | 2.00% |
| SuperLife Conservative | -0.81% | -1.06% | 3.96% | 3.10% | 7.53% | 3.48% | 3.89% | 4.47% |
| SuperLife Balanced | -0.33% | -0.05% | 8.51% | 7.14% | 11.39% | 5.72% | 6.49% | 6.71% |
| SuperLife Default | -0.51% | -0.01% | 8.95% | 6.98% | 10.64% | - | - | - |
| SuperLife Growth | 0.01% | 0.62% | 11.65% | 9.93% | 14.05% | 7.34% | 7.98% | 8.09% |
| SuperLife High Growth | 0.23% | 1.21% | 14.65% | 12.74% | 16.70% | 8.88% | 9.67% | 9.53% |
| Ethica | -0.88% | -0.21% | 8.24% | 6.59% | 11.60% | 5.79% | 7.14% | 7.07% |
(Note: These figures are representative of the SuperLife KiwiSaver Scheme. Returns displayed are after fund charges and before tax. Past returns are not a reliable indicator of future performance).
This information does not constitute financial advice and does not take account of personal circumstances; rather, it is designed to illustrate possibilities. As with all investment decisions, what might be the right strategy over the medium or longer term may not pay off over the very short term. No one can consistently predict what will happen over the short term. Those acting upon the information in this newsletter do so entirely at their own risk. Smartshares does not accept liability for the results of any actions taken or not taken based on this information. While every effort has been made to ensure accuracy, no liability is accepted for errors or omissions in this newsletter.
