Generate Fund Performance - March 2026

International Equities 

March was dominated by the ongoing conflict in the Middle East, with markets navigating heightened geopolitical uncertainty. Oil prices (which have surged as much as 80% since the conflict began) were highly volatile throughout the month, with equity markets generally moving inversely, albeit in a more measured way.

The S&P 500 declined 5.1% over the month, with similar moves across other major US indices (Dow Jones -5.4%, Nasdaq -4.8%). European markets were weaker, with the FTSE 100 falling 6.7% and the STOXX 50 down 9.3%, while Asia also declined, led by a sharp 13.2% fall in Japan’s Nikkei. Even so, many major indices remain relatively close to their record highs, highlighting how measured the pullback has been in the context of the geopolitical backdrop.

Within Generate’s global portfolios, Cheniere Energy performed strongly over March. The shares rallied 20%, supported by a sharp rise in global energy prices driven by the escalating conflict in Iran. The war has disrupted key LNG supply routes and infrastructure - particularly through the Strait of Hormuz and in Qatar - removing significant volumes from global markets and pushing gas prices higher. As one of the largest U.S. LNG exporters, Cheniere has been a key beneficiary of this supply shock, with strong demand from Europe and Asia seeking reliable alternatives to Middle Eastern supply. The resulting tightness in global energy markets, alongside Cheniere’s exposure to both long-term contracts and spot pricing, has supported earnings expectations and driven share price strength.

Marvell Technology performed strongly over March, surging 21%, supported by continued momentum in AI infrastructure spending and a significant strategic investment from Nvidia. The US$2 billion investment reinforced Marvell’s growing role in next-generation AI data centres, particularly through its custom silicon and advanced optical interconnect solutions, which are critical for improving speed and energy efficiency in large-scale computing systems. The partnership positions Marvell at the centre of an expanding AI ecosystem, as demand accelerates from hyper-scalers investing heavily in data centre buildouts. With major technology firms expected to substantially increase AI-related capital expenditure, investor confidence has strengthened around Marvell’s ability to deliver sustained revenue growth and capture a larger share of the high-performance computing and networking market.

On the downside, Meta Platforms underperformed during March, falling 12% as investor sentiment toward large-cap technology names weakened. Adding to the pressure was a recent court ruling in a social media addiction case involving Meta and Google, which - while financially immaterial in the near term - raised broader concerns around potential regulatory risks. This comes alongside existing concerns around the scale of ongoing capital expenditure required to support AI initiatives, with Meta expected to continue investing heavily in data centres and infrastructure, potentially weighing on near-term margins. While regulatory issues tend to arise periodically and ultimately earnings remain the key driver of long-term value, the combination of heightened scrutiny, elevated spending expectations, and a softer risk appetite led to profit-taking following a strong multi-year run in the share price.

Similarly, Micron Technology fell 18%, as the broader pullback in technology stocks weighed on semiconductor names despite otherwise solid structural demand. The shares were impacted by profit-taking following a strong run (the shares have quadrupled over the past 5 years), alongside some investor caution around the sustainability of near-term pricing and margins in memory markets. While demand tied to AI and data centre buildouts remains robust, the semi-conductor sector as a whole is inherently cyclical, and concerns around potential normalisation in pricing - combined with a more risk-off backdrop – drove weakness in the share price over the month.

We continue to view both Meta and Micron as exceptionally high-quality businesses, underpinned by strong competitive advantages and long-term structural growth drivers. Despite near-term volatility, both companies are well positioned to benefit from sustained growth in AI and digitalisation trends, with strong balance sheets and improving earnings profiles supporting long-term shareholder value.

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New Zealand & Australian equities

The New Zealand market was not immune to global weakness, with the NZX50 falling 5.9% over the month. However, it performed better than some global peers, including Australia, where the ASX200 declined 7.8% - its steepest monthly fall since June 2022. Defensive and rate-sensitive sectors generally outperformed, while cyclicals, technology, and consumer discretionary names came under pressure.

Coles, one of Australia’s largest supermarket operators, performed strongly during the month, with a 7% gain. Coles outperformed as investors rotated toward more defensive sectors amid a cautious market backdrop, with the business also supported by ongoing cost control initiatives and resilient food retail margins. Its scale, supply chain efficiency, and ability to pass through modest price increases have continued to underpin stable cash flows and earnings visibility.

Shares in Insurance Australia Group rose 10% during the month. The company is a leading general insurer across Australia and New Zealand, underwriting home, motor, and commercial policies. The stock benefited from its positive correlation to higher interest rates, which support stronger returns on its investment portfolio, while underlying insurance margins have also improved through premium increases and disciplined underwriting. In addition, a relatively benign natural catastrophe environment is supporting earnings expectations.

On the downside, Seek fell 16% during the month. The company operates leading online employment marketplaces across Australia, New Zealand and parts of Asia, connecting job seekers with employers. The stock was caught up in the broader tech sell-off amid a more risk-off backdrop, alongside softer labour market data in Australia. We remain positive on the name given its dominant market position, strong pricing power, and long-term exposure to structural growth in online recruitment marketplaces as hiring activity normalises over time.

Freightways also declined 16% during the month, reflecting softer consumer and business activity across New Zealand and Australia following the escalation in the conflict in the Middle East. Higher fuel prices will have also pressured margins in the near term, although the company has implemented fuel surcharges that are expected to offset these cost increases over time. Despite the cyclical slowdown, Freightways’ resilient business model, strong market position in express logistics, and ability to pass through costs provide some insulation, with earnings expected to recover as economic conditions stabilise.

Returns to the 31st March 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 31st March 2026

Generate total Funds Under Management (FUM) as of 31st of March 2026:
⁠$8,504,633,876