Generate Fund Performance - October 2025

International Equities 

Global equities continued to push higher in October, with many major indices once again hitting fresh record highs during the month. Markets across Europe also posted strong advances, with the STOXX600 rising 2.5% to new record highs.  

In Asia, the Nikkei225 stood out, surged 17% over the month. Japan’s market has already had a strong year, supported by the return of modest inflation and wage growth after decades of deflation, alongside hopes around the normalisation of monetary policy. A softer yen has boosted exporters’ earnings in foreign-currency terms, while investors have also responded positively to corporate reforms, better governance, and share buybacks. Japan’s deepening role in AI-related supply chains has added another layer of appeal, and optimism around new Prime Minister Sanae Takaichi’s pro-growth agenda has further fuelled the rally. 

Within Generate’s global portfolios, AI-related holdings once again delivered exceptionally strong performances. Nvidia rallied to fresh record highs, but far outstripping its performance was another semiconductor stock, Micron Technology. The shares soared over 30% during the month, as quarterly numbers showed that demand for high-performance memory chips tied to AI infrastructure continued to accelerate. The company is a global leader in DRAM and NAND flash memory, supplying critical components for data centres, AI servers, and advanced computing systems. Revenues were up 46% year-on-year to a record US$11.3 billion, supported by higher average selling prices and strong data-centre demand. Management guided for further margin expansion as AI-related memory demand continues to outstrip supply. The stock has more than doubled this year.  

The commencement of the earnings season saw particular focus many of the MAG7 names. There has been some concern with how much super-cap companies are spending on the AI race, but not with Google’s parent Alphabet. The cloud computing and YouTube businesses are doing well - as is Search. Contrary to concerns about AI eating into Google’s revenues, it is actually providing a tailwind. AI-driven ad products were a major reason for the strong growth in Search and YouTube ad revenue. Google Ads now uses AI-driven bidding and creative tools to automatically adjust how and where ads appear, optimising performance and returns from ads. Alphabet shares rose around 17% over the course of the month. 

Amazon rose 11% over the month and also came in with a very strong result. The cloud business (which rents out computer power to other companies) is doing well, with revenues up 20% from a year earlier to US$33 billion. The unit generated operating income of US$11.4 billion, accounting for roughly two-thirds of Amazon’s total operating profit even though it contributes only a fraction of total sales. Management said that demand for AI tools is so strong that Amazon is planning to spend even more this year (around US$125 billion) building data centres and technology to keep up. Amazon’s advertising arm is also booming. Revenues rose 24% to US$17.7 billion - Amazon is now one of the biggest ad companies on earth. 

Lam Research had a super-strong month, with a 19% gain. The company sits at the forefront of the AI boom, building the machines that manufacture the computer chips powering everything from smartphones to data centres. The company designs, manufactures, and services advanced tools for semiconductor fabrication (wafer processing) - the physical process of turning raw silicon into integrated circuits. Lam delivered a robust quarter, with revenue up 28% year-on-year to US $5.3 billion and gross margins at 50%.  

On the downside digital payments and financial services provider Fiserv underperformed during the month. The shares fell as the company cut its full-year outlook and on claims that growth trends within its Clover payments platform were inflated. We believe the market response has been excessive, and we continue to view Fiserv as a strategically important player in global digital payments, with resilient underlying franchises and strong cash generation.  

New Zealand & Australian equities

The New Zealand market performed strongly during the month, with the S&P/NZX50 rising 1.9%. The Australian market touched a record high during the month, before trimming gains, with the S&P/ASX100 closing up 0.2% on the month. 

A contrasting economic backdrop led to differing moves by the respective central banks, despite similar inflationary pressures. In New Zealand while the consumer price index rose 3% on an annual basis in September, the RBNZ cut the official cash rate by 0.5%, with officials noting the “ample” spare capacity in the economy.  In Australia, the RBA’s appetite for further cuts to the cash rates diminished amid a resilient economy, and as September quarter inflation rose to 3.0% in the September quarter, the first increase since December 2022.  

Oceania Healthcare was a standout performer in October, rising 15%. The company reported a 58% lift in applications in the first half of FY26 compared to the prior period, reflecting the benefits of recent pricing, marketing, and sales initiatives. While this momentum has yet to translate into settlement growth, ongoing cost initiatives remain a focus, with management targeting $20 million in annualised savings to drive improved profitability. 

ANZ also performed strongly, gaining 10% over the month. The bank’s capital markets day provided further detail on its cost-reduction and restructuring plans, alongside updates on the integration of Suncorp Bank and the continued rollout of ANZ Plus. Investors were encouraged by management’s renewed focus on efficiency and near-term profit targets, reinforcing confidence in the group’s ability to navigate a more competitive banking landscape. 

Freightways delivered another solid month, jumping 7%. The logistics company updated at its AGM that the New Zealand economy was no longer a headwind, while its Australian operations were also buoyant.  

Wesfarmers (-9%) was the weakest performer. At its annual general meeting, the company noted solid trading from Kmart and Bunnings, but results from Officeworks fell short of expectations. While overall consumer demand remains positive, cost-of-living pressures are weighing on spending in some areas. The company continues to invest in productivity and cost-efficiency initiatives to offset margin pressures and maintain competitive pricing across its key divisions.  

Returns to the 31st of October 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 30th of September 2025

Generate total Funds Under Management (FUM) as of 31st of October 2025: $8,440,986,490.