International Equities
After a strong start to the month, global equity markets delivered contrasting performances over the course of June. While there was cause for optimism on the geopolitical front, which saw oil prices fall around 25% from their peak levels earlier in the month, there were questions over the durability of the US/Iran ceasefire. This in turn continued to cast uncertainty over the outlook for inflation along and interest rates. Hawkish comments from some central bankers at meetings during the month further prompted investor caution. After leading the way higher in previous months, the technology sector retreated, while older economy names were more in demand.
The MSCI World Index eased 0.83% in US dollar terms during the month. In the US the S&P500 and Nasdaq both made record highs at the start of the month, before closing out June down 1.1% and 2.8% respectively as the technology sector eased. A rotation towards older economy stocks saw the Dow Jones gain 2.5% over the month, closing June at record highs, European markets delivered strong gains with the STOXX50 up 4.6% while in Asia, Japan was a standout, with the Nikkei jumping 5.6%, reaching new all-time highs, before giving up some gains towards the end of the month.
The strongest performers in our international portfolios were an eclectic mix of semiconductor, healthcare, and cyclical companies. This reflected both the persistence of certain AI-driven investment trends, and improving sentiment across parts of the broader economy.
Semiconductor and AI infrastructure-related companies remained key contributors despite broader volatility in the sector during the month. Micron Technology delivered another strong performance, rising 18.9% during the month. The company delivered a very strong earnings result, with the memory-chip maker reporting a more than quadrupling in revenue from a year earlier to US$41 billion. Management pointed to extraordinary demand for AI infrastructure and little sign of supply catching up anytime soon.
Lam Research (+36.2%) and ASML (+23.4%) delivered even strong performances. Investors continued to recognise their central roles in the semiconductor manufacturing ecosystem and continued robust expenditure by chipmakers seeking to meet accelerating AI-related demand.
Marvell Technology (+35.5%) was also a very strong contributor, benefiting from its exposure to custom silicon and high-speed networking solutions used in cloud and AI infrastructure. Demand from hyperscale customers remains robust, with increasing adoption of AI-optimised architectures supporting strong growth expectations.
Outside the technology sector, UnitedHealth Group (+9.3%) performed well during the month, with investor sentiment supported by the company's defensive earnings profile and continued strength in its core health insurance and services businesses. In a market still navigating macroeconomic uncertainty, UnitedHealth's consistent earnings delivery and scale continue to underpin its appeal.
Alaska Air Group (+13.4%) was a positive contributor, with the shares benefiting from improving sentiment toward the airline sector. Lower fuel costs and signs of steady travel demand have supported the outlook for margins, while signs of easing geopolitical tensions have helped reduce concerns around demand disruption.
On the downside, Microsoft (-17.2%) and Amazon (-11.9%) detracted from performance during the month. Investor focus remains around the scope for AI to significantly disrupt their business models. In addition, the scale of capital investment required to support their expanding AI infrastructure has prompted increased scrutiny from the market, particularly regarding the timing and ultimate returns on this investment. Despite this, the underlying fundamentals for both companies remain strong, with continued growth in cloud services and expanding AI capabilities expected to support earnings over the long term.
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New Zealand & Australian equities
The NZX50G gained 2.9% during June. Investor sentiment improved as expectations for further interest rate increases eased somewhat following the ceasefire in the Middle East and the accompanying decline in oil prices. Lower energy prices have reduced inflation concerns, improving the outlook for household spending and supporting expectations that New Zealand's economic recovery can resume.
Australian equities also delivered a positive month, with the S&P/ASX200 rising 0.5%. The Reserve Bank of Australia left interest rates unchanged during June as policymakers continued to balance persistent inflation pressures against moderating economic growth.
Amongst the strongest contributors, a2 Milk surged 39.7% during the month, driven by a series of favourable announcements that restored market confidence. The company received approval from China's State Administration for Market Regulation (SAMR) to transition its existing infant formula registrations to a2-branded products, removing a key regulatory overhang and validating its investment in production capacity at Pōkeno. Following the approval, the Board declared a fully franked NZ$300 million special dividend, signalling both balance sheet strength and confidence in the company's outlook.
Pro Medicus was also a standout performer, soaring 53.8% during the month following a series of contract wins and renewals that reinforced the strength of its Visage imaging platform. The company secured a A$28 million, five-year renewal with Allegheny Health Network, alongside a A$16 million, seven-year contract with TidalHealth. In addition, a A$16 million, five-year renewal with Ohio State University's Wexner Medical Center expanded the scope of services to include workflow and cardiology imaging, increasing recurring revenue visibility. The company also announced a reseller agreement with Echo IQ, further enhancing its AI-enabled cardiovascular imaging capabilities and broadening its product ecosystem.
Brambles also delivered a strong return, gaining 17.6% during the month. While there were no major company-specific announcements, the shares continued to benefit from the company's on-market share buyback programme.
On the downside, Mainfreight declined 4.3% during the month despite the absence of any material company-specific news. We remain positive on the company's long-term outlook, supported by its high-quality management team, strong balance sheet and proven ability to navigate economic cycles. Notably, the share price has improved since month end amid renewed optimism around ceasefire negotiations, which has helped buoyed market sentiment toward cyclical stocks.
Returns to the 30th June 2026
(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
0.70%
16.50%
8.55%
11.06%
10.39%
Growth
Fund
0.93%
13.65%
7.35%
9.55%
9.33%
Balanced Fund^
0.92%
11.61%
9.69%
Moderate Fund
1.12%
8.89%
5.22%
5.72%
5.97%
Conservative Fund^
1.22%
6.56%
6.10%
CashPlus Fund^
0.30%
3.00%
4.27%
Thematic Fund^^^
1.37%
24.20%
33.59%
Global Fund^^^
-1.77%
21.33%
32.47%
Australasian Fund^^^
2.52%
5.20%
9.71%
Generate Managed Funds:
1 Month
1 Year
5 Year (p.a.)
10 Year (p.a.)
Since inception** (p.a)
Focused Growth Managed Fund
0.71%
16.44%
8.49%
9.80%
Balanced Managed Fund^
0.92%
11.60%
9.72%
Conservative Managed Fund^
1.23%
6.60%
6.09%
Thematic Managed Fund^^
1.39%
24.11%
23.48%
Australasian Managed Fund^^
2.53%
5.18%
4.94%
Global Managed Fund^^^
-1.75%
21.50%
32.68%
CashPlus Managed Fund^^^
0.32%
3.06%
3.18%
Fixed Interest Managed Fund^^^
1.44%
4.39%
4.18%
* Except for the $3 per member per month administration expense that is charged to KiwiSaver members over 18.
** 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.
Top Holdings as of the 30th June 2026
International Equities
Nvidia
Amazon
Microsoft
Alphabet
Apple
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