International Equities
Global equity markets advanced in August, though performance diverged across regions and sectors. In the US, the S&P 500 rose by around +1.9%, marking its fourth consecutive monthly gain, while the Nasdaq Composite advanced +1.6% and the Dow Jones gained +3.2%. The Russell 2000 (small-caps) outperformed significantly, rising +7.3% for the month.
Global equities, particularly small-caps, benefited from dovish signals from the Federal Reserve, following Chair Powell’s Jackson Hole remarks, which heightened expectations for a September rate cut. Market optimism in the US was further buoyed by solid Q2 earnings and relatively upbeat management outlooks. In Japan, the Topix index surged, crossing 3,000 for the first time in August and rising about +34% since April, propelled by foreign inflows, structural reforms, and a US–Japan trade deal. Elsewhere, investors increasingly shifted capital into emerging markets, spurred by a weaker US dollar, concerns over “fiscal responsibility” in developed markets, and attractive valuations in emerging markets.
Generate’s global portfolios comfortably outperformed world indices in August. Top performers included healthcare stocks like UnitedHealth Group, Elevance and Eli Lilly, which all bounced back strongly after selling off in the first half of the year. Building-related stocks (Home Depot and CRH) also rallied thanks to hopes of US interest rates cuts and solid earnings reports. Technology stocks were more mixed, with software names coming under pressure due to fears of obsolescence under a new AI-led landscape. Even the mighty Microsoft didn’t escape the software jitters, falling -5% in the month.
We remain constructive on the outlook for global equities with a caveat that dips will likely occur as the year unfolds. As long-term active investors, we tend to treat periods of weakness as buying opportunities.
New Zealand & Australian equities
New Zealand and Australian shares both enjoyed modestly positive performance in August (S&P/NZX50 +0.8% and S&P/ASX100 Industrials +0.9%). This seemingly pedestrian month at the index level hides a significant dispersion of returns at the individual company level as a large proportion of the companies listed in Australia and New Zealand reported their financial results for the year ending June 30.
Financial results or guidance for next year’s results that fell short of expectations were punished harshly. In contrast, modest beats catalysed strong share price performance. One statistic to illustrate the broad spread of returns over the month is that there were 11 companies in the portfolio with double-digit positive returns and 2 companies with double-digit negative returns.
The strongest-performing company was A2 Milk, which rose +21.5% during the month. The company produced a solid set of numbers, provided conservative guidance, and announced an M&A transaction that will put the company's production on a more stable footing.
The weakest-performing share over the month was EBOS (-20.3%), a healthcare products supplier and distributor. The company, which had begun to build a strong track record of meeting or beating expectations, modestly missed 2025 expectations and provided guidance for 2026 which fell a long way short of market expectations.
Returns to the 31st of August 2025
(after fees* and before tax)
Generate KiwiSaver Funds:
1 Month
1 Year
5 Year (p.a.)
10 Year (p.a.)
Since inception**
(p.a.)
Focused
Growth Fund
2.47%
13.09%
9.51%
9.67%
10.11%
Growth
Fund
2.17%
11.15%
8.59%
8.87%
9.19%
Balanced Fund^
1.93%
9.67%
9.62%
Moderate Fund***
1.69%
8.72%
5.34%
5.88%
5.88%
Conservative Fund^
1.38%
7.25%
6.31%
CashPlus Fund^
0.29%
4.85%
4.62%
Thematic Fund^^^
2.53%
Global Fund^^^
4.03%
Australasian Fund^^^
1.46%
Generate Managed Funds:
1 Month
1 Year
5 Year (p.a.)
10 Year (p.a.)
Since inception** (p.a)
Focused Growth Managed Fund***
2.46%
12.89%
9.45%
9.15%
Balanced Managed Fund^
1.92%
9.47%
9.66%
Conservative Managed Fund^
1.38%
7.39%
6.29%
Thematic Managed Fund^^
2.53%
20.77%
23.25%
Australasian Managed Fund^^
1.49%
4.45%
6.19%
Global Managed Fund^^^
4.02%
CashPlus Managed Fund^^^
0.30%
Fixed Interest Managed Fund^^^
1.09%
* Except for the $3 per member per month administration expense that is charged to KiwiSaver members.
** 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.
Top Holdings as of the 31st of August 2025
International Equities
Nvidia
Amazon
Microsoft
Alphabet
Meta Platforms
External Managers
Te Ahumairangi Global Equity Fund
T Rowe Price Global Equity Fund
CIM Infrastructure III Fund
Worldwide Healthcare Trust
Heal Partners Fund II
Australasian Equities
Fisher & Paykel Healthcare
Infratil
Contact Energy
Goodman Group
Spark
Fixed Income
NZ Government Bonds
Kāinga Ora Bonds
Local Government Funding Agency Bonds
Westpac Australia Bonds
NZMS 1st Notes