International Equities 

April marked the strongest month for global equities since November 2020, with major indices rallying sharply despite ongoing geopolitical tensions - supported by a combination of very strong earnings, particularly from the technology sector, continued momentum in AI-driven investment, and a still-resilient global economy that has, for now, absorbed the impact of higher oil prices and uncertainty. Central banks largely adopting a “wait-and-see” approach has also been supportive to broader sentiment.

The MSCI World index jumped 9.5% during the month. The Nasdaq surged 15.3% over the month, and the S&P 500 rose 10.4%. The S&P 500 and Nasdaq both hit record highs. Europe was also solid, with the STOXX 50 up 5.6% and the FTSE 100 gaining 2%. Across Asia, the Nikkei jumped 16.1%, the CSI 300 rose 8% and the Hang Seng gained 4%.

Among the top performers in our funds, semiconductor names rebounded strongly during the month. SK Hynix surged 60.5% following exceptionally strong earnings from the South Korean chip manufacturer, with quarterly operating profit rising five-fold to a record level, driven by surging demand for AI-related memory. Sales nearly tripled as hyper-scalers continued to invest heavily in AI infrastructure. The company has highlighted that demand for high-bandwidth memory (a critical component for AI workloads) is expected to exceed supply for several years, supporting a favourable pricing environment. Micron Technology also performed strongly during the month, rising 53.1%, more than covering March’s decline, on similar themes of improving memory pricing and AI-driven demand.

UnitedHealth Group rose 36.9% over the month, supported by a strong first-quarter result that exceeded market expectations and helped rebuild investor confidence. The health insurance giant reported quarterly net income of US$6.28 billion and raised its full-year guidance. A key driver was a better-than-expected medical-loss ratio, reflecting improved cost control, and a milder flu season. All major business segments performed ahead of expectations, reinforcing confidence in the company’s diversified model and resilient earnings profile.

GE Vernova also delivered a strong performance, rising 24.1%. The company is benefitting from growing investor focus on energy security and infrastructure investment, alongside surging electricity demand from AI-driven data centre buildouts. The electrification division reported first-quarter orders of $2.4 billion, with equipment sales to data centre customers exceeding the total for all of last year, highlighting the scale of demand from hyper-scalers. Strength in both electrification and power segments supported improved margins and a lift in full-year guidance.

On the downside, Alamos Gold declined 10.1% during the month, as gold fell out of favour despite elevated geopolitical and inflation risks. Investor capital rotated out of the precious metal toward energy exposures amid Middle East tensions, while rising real yields (driven by shifting expectations regarding Federal Reserve policy) created additional headwinds for the non-yielding metal. ETF outflows point to softer investor sentiment and profit-taking following the strong rally seen through 2024 and early 2026. The fund had previously taken profits and reduced its exposure to Alamos Gold (and the sector generally), reflecting a more cautious positioning as these dynamics emerged.

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New Zealand & Australian equities

Over the month, both the NZX50 and ASX200 underperformed US indices. The NZX50 finished broadly flat, as improving domestic indicators such as employment and housing were offset by subdued sentiment and the prospect of limited earnings growth. The ASX200 rose 1.8% for the month which was a disappointing outcome after stronger performance earlier in April. Selling in the healthcare sector followed on from a series of high profile profit warnings, while the prospect of higher interest rates in Australia also weighed on tech, retail, and real estate stocks.

Goodman Group was a standout performer during the month, rising 15.8%. The company announced a new data centre joint venture with US operator DataBank to develop the LAX01 project in Los Angeles. The site is located in the highly sought-after El Segundo area, a supply-constrained data centre hub supported by strong hyper-scaler and enterprise demand. The announcement is significant as it helps validate Goodman’s expanding data centre strategy, while also unlocking development profits and reinforcing investor confidence in the group’s long-term earnings growth.

Pro Medicus gained 15.0% over the month, rebounding after being caught up in the broader software sector sell-off in prior periods. The company benefited from a number of contract wins, reinforcing its strong competitive position in medical imaging software. In addition, management announced an upsized share buyback programme, signalling confidence in the company’s future and supporting the share price. We continue to view Pro Medicus favourably given its high-margin business model, global growth opportunities, and strong recurring revenue base.

On the downside, A2 Milk declined 24.9% during the month following a downgrade to its FY26 revenue and earnings expectations. The company signalled that the anticipated recovery, particularly in its infant nutrition segment, is likely to be slower and less certain than previously expected. This was driven in part by supply chain disruptions and increased regulatory hurdles, which have limited inventory availability into the key China market. The updated guidance also implies weaker near-term operating leverage, with costs not adjusting in line with softer sales. While the fund retains a position in A2 Milk, it is underweight relative to its benchmark, reflecting a more cautious view on the company’s near-term outlook.

Returns to the 30th April 2026 

(after fees* and before tax) 

Generate KiwiSaver Funds:

Generate Managed Funds:

** The Generate KiwiSaver Scheme funds opened on 16 April 2013. The Generate Focused Growth Trust opened on 1 November 2019.

***Following the launch of new funds in May 2022, our original Conservative Fund was renamed as the Moderate Fund and the Focused Growth Trust has been renamed as the Focused Growth Managed Fund.

^ these funds were established on 16 May 2022.

^^ these funds were established on 3 July 2023.

^^^ these funds were established on 30 April 2025.

Past performance is not necessarily an indicator of future performance.

Generate’s fund updates can be found here for KiwiSaver Funds and here for Managed Funds.

Top Holdings as of the 30th April 2026

Generate total Funds Under Management (FUM) as of 30th of April 2026:
⁠$9,340,294,380

International Equities 

Global equities continued to move higher during May despite ongoing uncertainty around inflation, interest rates, and geopolitical developments. Investor sentiment was supported by resilient economic data, strong corporate earnings, and continued enthusiasm for artificial intelligence-related investment. The prospect of a more durable ceasefire between the United States and Iran also helped improve risk appetite during the month, contributing to a sharp decline in oil prices and easing concerns around global energy supply.

The MSCI World Index rose 4.6% in US dollar terms during the month, while in the US all three major indices reached fresh record highs. The S&P 500 advanced 5.2%, the Nasdaq surged 8.4%, and the Dow Jones gained 2.8%. European markets also delivered positive returns, while Japan was a standout in Asia, with the Nikkei soaring 11.9% and reaching new all-time highs on the back of continued strength in semiconductor and technology-related stocks.

Among the strongest performers in our funds were memory semiconductor manufacturers Micron Technology and SK Hynix, which both surged more than 80% during the month. Micron became only the twelfth company in US history to surpass a US$1 trillion market capitalisation, while Korean-listed SK Hynix also crossed the trillion-dollar mark in US dollar terms. Both companies are leading suppliers of high-bandwidth memory chips, a critical component in advanced AI systems and data centres. Strong demand continues to outstrip supply, supporting a favourable pricing environment across the broader memory market.

Eli Lilly also performed strongly during the month as the pharmaceutical giant became the first healthcare company to achieve a market valuation exceeding US$1 trillion. Investor enthusiasm continues to be driven by the exceptional success of its obesity and diabetes treatments, Zepbound and Mounjaro, which are reshaping the global healthcare landscape. Strong earnings growth and increasing confidence in the long-term potential of obesity treatments have supported the shares, while management has also begun deploying the significant cash flows generated by these products into acquisitions and pipeline expansion initiatives aimed at diversifying future growth.

On the downside, Boston Scientific underperformed during the month after lowering its full-year profit and revenue growth guidance. While first-quarter earnings and revenue both exceeded market expectations, investors focused on the reduced outlook and what it may signal about growth prospects over the remainder of the year. Despite the softer guidance, underlying demand remains healthy, particularly within the company's cardiovascular division, and we continue to view Boston Scientific favourably given its strong market positions and long-term growth opportunities.

READ MORE

• Smart strategies to grow your KiwiSaver savings
• Market outlook for 2026 - what 2025 taught investors
• Open a Managed Fund

New Zealand & Australian equities

The New Zealand market delivered a strong monthly performance, with the NZX50G rising 2.6% during May - its best monthly gain since September. Australian equities also posted a positive return, with the ASX200 gaining 0.8% and recording a second consecutive monthly advance. The NZX outperformed its Australian counterpart, supported by solid earnings updates and growing confidence that domestic economic conditions are beginning to stabilise. Market sentiment was also aided by easing trade and geopolitical tensions, with lower oil prices helping support risk appetite across the region.

Infratil was the standout performer within the portfolio, rising 26.4% during the month. Increasing demand for AI-related infrastructure was reinforced by CDC Data Centres (49.7% owned by Infratil) signing a 555MW data centre contract with a US investment-grade customer - the largest data centre contract in Australian history. The agreement took CDC's contracted capacity above 1GW for the first time, underscoring the scale of demand emerging from AI and cloud computing customers. The company also reported a strong full-year result, driven by growth across its data centre and renewable energy businesses. Management highlighted increasing demand for AI-related infrastructure, reinforcing confidence in future earnings growth.

In many respects, Infratil has become one of New Zealand's purest listed exposures to the AI infrastructure buildout, with its increased investment in US-based Longroad Energy providing additional exposure to the substantial growth in electricity demand expected from data centres. During the month, Infratil also raised almost $500 million through a partial sell-down of its Contact Energy stake. The move reflects management's disciplined approach to recycling capital into higher-growth opportunities while continuing to focus the portfolio on scalable infrastructure assets.

Fletcher Building gained 12.5% over the month. Investor sentiment improved following the successful sale of its construction division, which generated approximately $315 million in proceeds and reduced pressure to quickly divest its residential business. The company also exited its remaining Fiji construction operations as part of its broader asset sale programme. These actions reflect management's ongoing efforts to simplify the business, reduce debt, and sharpen its focus on its core building materials and distribution operations.

Mainfreight rose 9.7% during the month following the release of its full-year result. While revenue growth remained modest and profits were impacted by higher fuel costs and broader economic pressures, investors had entered the result concerned that management might downgrade its outlook. Instead, the company provided reassurance that demand from its largest customers remains relatively resilient despite ongoing economic uncertainty. Management also reaffirmed its commitment to investing in network expansion and operational capacity, supporting confidence in its longer-term growth prospects.

On the downside, A2 Milk declined 24.5% during the month after announcing a recall of a small number of infant formula batches in the United States. While the recall affected only around 16,000 tins and represented a relatively limited financial impact, investors reacted negatively amid concerns the issue could weigh more broadly on consumer confidence, particularly in the important Chinese market, while ongoing uncertainty around inventory availability and regulatory requirements has increased the risk of further earnings downgrades. The funds have maintained a relatively small position in A2 Milk, reflecting concerns around previously elevated valuation levels, but have been selectively adding to the position as the share price correction has made the opportunity more compelling.

Returns to the 31st May 2026 

(after fees* and before tax) 

Generate KiwiSaver Funds:

Generate Managed Funds:

** The Generate KiwiSaver Scheme funds opened on 16 April 2013. The Generate Focused Growth Trust opened on 1 November 2019.

^ these funds were established on 16 May 2022.

^^ these funds were established on 3 July 2023.

^^^ these funds were established on 30 April 2025.

Past performance is not necessarily an indicator of future performance.

Generate’s fund updates can be found here for KiwiSaver Funds and here for Managed Funds.

Top Holdings as of the 31st May 2026

Generate total Funds Under Management (FUM) as of 31th of May 2026:
⁠$9,734,854,384