Generate Fund Performance - November 2025

International Equities 

Global equities experienced a volatile and generally softer month in November. As the month went on investors grew more cautious about the global growth outlook, particularly with the U.S. Government shutdown delaying the release of key economic data. However, equities rallied in the latter stages of the month after the shutdown ended and as AI leader Nvidia delivered a much stronger-than-expected result, reaffirming confidence in the AI narrative. The S&P500 finished the month up 0.1%, the Dow gained 0.3%, while the tech-heavy Nasdaq ended down 1.5%. The smaller cap Russell 2000 rose 0.9%. In Europe the STOXX50 closed up 0.1% while in Asia the Hang Seng was 0.2% lower, and the Nikkei declined 4.1%, after an exceptionally strong run in the previous months.

Within Generate’s global portfolios, Alphabet was one of the standout contributors to performance. Shares in Google’s parent rose 13% and are now up around 68% year-to-date. There is compelling evidence that Alphabet is making headway in its effort to rival Nvidia’s bestselling AI accelerators. Meta Platforms is reportedly in advanced discussions to use Google’s tensor processing units (TPUs) in data centres from 2027, and may rent chips from Google Cloud as early as next year. This comes alongside rave reviews for Alphabet’s new Gemini AI model.

Alphabet’s market value has climbed to nearly US$3.9 trillion and has added roughly US$1 trillion in market cap since early October. Claims that AI would be negative for Google Search have also so far proven unfounded; if anything, AI is improving outcomes and advertiser performance. Sentiment has also been boosted by the revelation that Alphabet was the largest purchase last quarter for Warren Buffett’s Berkshire Hathaway.

Eli Lilly also performed strongly, rising 25% over the month on continued exceptional demand for its weight-loss and diabetes treatments. Manufacturing expansion plans aimed at alleviating supply constraints provided an additional catalyst, as several US investment banks raised their price targets. There are projections that sales of Mounjaro and Zepbound could exceed US$25 billion by 2028–2030, making them two of the largest-selling drugs in history. Lilly briefly surpassed US$1 trillion in market value during the month, reflecting the scale of the opportunity ahead.

Gold-related names bolstered returns, with Alamos Gold advancing over 20% amid higher precious-metal prices and expectations of easier global monetary policy. The company continues to benefit from being a low-cost producer with diversified, long-life assets in safe jurisdictions across Canada and Mexico. Alamos has a strong growth pipeline, underpinned by expanding high-grade reserves and funded development projects. The company has a record of consistent solid free cash flow generation, and strong capital returns through dividends and buybacks.

Investor appetite for some cyclical names also increased. Hyatt Hotels surged 20%, lifted by resilient travel demand and ongoing strength in both corporate and leisure bookings. In particular, the company is benefitting from persistent strength at the upper/premium end of the travel industry, where customers remain willing to spend on high-quality accommodation and experiences. Hyatt’s asset-light model continues to expand fee-based earnings, with forward bookings supporting a constructive outlook.

Not all global holdings moved higher. Nvidia, despite delivering extraordinary quarterly results, including 66% data-centre revenue growth and visibility over more than US$500 billion of forward AI-chip orders, saw its share price fall 13%. The shares have though experienced an exceptional run and remain up over 30% year-to-date. The reaction in November reflected broader macro concerns and profit-taking rather than anything company-specific. We continue to believe Nvidia’s valuation (25 times forward earnings) remains modest relative to the pace at which the company is growing earnings and revenue, particularly given the company’s central role in the multi-year AI-infrastructure cycle. Despite growing competitive threats Nvidia remains exceptionally well positioned within the broader AI ecosystem.

DoorDash also declined, falling 22% over the month. While the company delivered a strong result (with total order value up 25% year on year) the market focused on its plans to significantly increase investment, with several hundred million dollars earmarked for new products next year. Similar to some other tech-company “misses” this earnings season, it wasn’t the current performance but the step-up in spending that weighed on sentiment. The reaction also needs to be viewed in context: the stock is still up more than 30% this year.

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New Zealand & Australian equities

The New Zealand and Australian markets diverged over the month, reflecting differences in monetary-policy settings and domestic economic momentum. The NZX 50 rose around 0.5%, supported by improving business sentiment and favourable domestic economic indicators. In contrast, the ASX 100 declined around 3.2%, weighed by softer updates from major financials and ongoing uncertainties around the timing of rate cuts in Australia.

The policy backdrop was a key factor in this divergence. There was some anticipation ahead of the RBNZ meeting late in the month. In the end the central bank cut the Official Cash Rate by 25 bps, taking it to 2.25%, the lowest level in three years, as policymakers responded to rising unemployment, and signs of spare capacity in the economy, while expecting inflationary pressures to abate. Meanwhile, the RBA held rates steady, after a hotter-than-expected inflation print signalled that Australia may need to keep the cash rate at 3.6% somewhat longer. This contrast supported New Zealand’s market while putting pressure on rate-sensitive sectors in Australia.

In New Zealand, Mainfreight was a standout performer, rising 11.5% after delivering a first-half FY26 result that was better than feared. While the numbers were modestly ahead, management struck an optimistic tone, highlighting incremental improvements across its New Zealand and Australian operations. Domestic freight volumes have begun to stabilise and management noted early signs of better trading conditions across several key markets. Investors welcomed the update given Mainfreight’s strong execution record and its leverage to a broader recovery in freight activity.

Retirement-sector names also strengthened. Oceania Healthcare (+7.0%) rose again, extending its recent momentum following a solid half-year result. The company continues to make progress across sales, pricing, and care-suite applications, underpinned by improving occupancy and stronger cost-efficiency outcomes. Summerset likewise delivered a firm month, with the shares gaining 8%, supported by the narrative around a strong development pipeline, healthy resale activity, and sustained demand for retirement living. Both operators are well positioned to benefit from favourable demographic trends and a stabilising housing market heading into 2026.

Across the Tasman, Charter Hall Group gained 10.8% after upgrading its FY26 guidance by 5% at its annual meeting. The property fund manager is benefiting from increased investment activity across industrial, logistics, and social-infrastructure assets, supported by a perception that interest rates are nearing their peak. Charter Hall highlighted improving transaction pipelines and stronger fund inflows.

On the downside, Commonwealth Bank of Australia fell 11.2% following a softer-than-hoped first-quarter FY26 update. While cash net profit after tax of A$2.6 billion was broadly in line with expectations, the quality of earnings disappointed. Net-interest margins weakened due to intense mortgage competition and the impact of a lower cash rate on deposit spreads. Although stronger performance in the markets division helped offset this, the inherently volatile nature of markets revenue meant investors placed less emphasis on this component.

Returns to the 30th of November 2025 

(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 of October 2025

Generate total Funds Under Management (FUM) as of 30th of November 2025: $8,526,033,730.38.