The tables below show the performance of our KiwiSaver and Investment Funds to the end of December 2019.

Here's what influenced the markets last month:

Bonds:

• Global bond yields continue an upward trajectory and are significantly higher than this time three months ago. Conservative and Bond Fund show capital losses over the month.
• The US Federal Reserve does not believe further rate cuts are required and policymakers expect rates to remain stable in 2020. The range remains 1.5%-1.75%.

Australasian equities:

• NZX50 Index up over 1% for the month and a whopping 30% for the year
• Investors continue to chase high dividend-paying stocks as term deposit rates shrink.
• Retirement village operator Metlifecare received a takeover offer from a Swedish fund manager. A shareholder vote on whether to accept the offer is in April. 
• Australian shares sank 3% in December resulting with a slight drag on our overall Growth Fund performance.

International shares:

• Solid gains from global indices over the month with the US market up nearly 3% and posting its best annual return since 2013.
• UK election results went as expected giving the market greater confidence about Brexit occurring in an orderly manner. 
• Profit-taking toward the year-end and the tensions in the Middle East took some shine off the traditional December “Santa” rally. 

NZD:

• NZD posted a solid 4.7% rise in December against the USD and was up 3.2% on a trade-weighted basis
• Over the full year, however, the NZD was basically steady against the global basket of currencies.