Learn » Updates » New Zealand sharemarket running red hot while Australian equities cool in December


New Zealand sharemarket running red hot while Australian equities cool in December


22/01/2020

nzximage

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.

 


Name Inception
Date
3
Months
1
Year
3
Years
Annualised
KiwiSaver Scheme
Simplicity Growth Fund 01.09.16 3.51% 22.34% 11.86%
Simplicity Balanced Fund 01.09.16 2.03% 17.49% 9.42%
Simplicity Conservative Fund 01.09.16 -0.29% 10.10% 6.21%
Simplicity Guaranteed Income Fund 24.10.17  1.88% 15.38%  

 


Name Inception
Date
3 month 1
Year
3
Years
Annualised
Investment Funds
Simplicity Growth Investment Fund 03.04.17  3.47% 22.46%  
Simplicity Balanced Investment 
Fund
03.04.17   1.96% 17.61%  
Simplicity Conservative Investment 
Fund
03.04.17  -0.32% 10.11%  
Simplicity NZ Bond Fund 03.04.18  -2.86% 5.05%  
Simplicity NZ Share Fund 03.04.18  5.45% 31.17%  

These returns are to 31 December 2019 and are before tax and after fund management fees.





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