Generate Fund Performance - September 2025

International Equities 

Global equities benchmarks continued to push higher in September, with many major equity indices hitting fresh record highs during the month. In the US the S&P 500 gained 3.5%, and the Nasdaq Composite surged 5.6%. In what is typically a poorly performing month, both indices had their best September since 2010. September was also notable for the US Federal Reserve’s first interest rate cut of the year. The Dow rose 1.8%, while the smaller cap Russell 2000 gained 3%. Markets in Europe performed strongly with the STOXX50 rising 3.4% to record highs. The Hang Seng in Hong Kong jumped 7.1% during the month, and the Nikkei225 in Japan gained 5.2% to set another record high.

Within Generate’s global portfolios, AI-related holdings delivered exceptionally strong performances in September. Nvidia rallied to fresh record highs, though two other related semiconductor names outpaced it in terms of monthly gains. Shares in ASML surged more than 30% during the month, propelling the Dutch-headquartered firm to become Europe’s most valuable company. The stock benefited from upgrades by three major brokerage houses, while demand for its extreme ultraviolet lithography machines, essential for producing Nvidia’s most advanced chips, remained robust.

Taiwan Semiconductor Manufacturing Company (TSMC) also posted impressive gains, rising over 20% during the month. TSMC, Nvidia’s primary chip manufacturer, reported a 34% increase in monthly revenues, reflecting sustained global demand for cutting-edge AI silicon. The company is also the world’s largest producer of advanced semiconductors, including those used in Apple’s iPhones.

Another strong performer during the month was Amphenol, one of the world’s largest designers and manufacturers of connectors, interconnect systems, antenna solutions, sensors, and high-speed cables. The company’s connectors are critical components used across a wide range of industries, including aerospace, automotive, industrial, and telecommunications. The rapid build-out of data centres has been a huge tailwind for the company, which has also been active on the acquisition front. The stock received several broker upgrades during the month.

On the downside Canadian software provider Constellation Software and European logistics firm In-Post underperformed during the month. We believe investor concerns surrounding both companies are overstated as their respective businesses are performing very well.

New Zealand & Australian equities

New Zealand and Australian share-markets delivered contrasting performances in September. The S&P/NZX50 rose 2.8%, while the S&P/ASX100 fell 1.6%.

Economic data painted a differing picture across the two economies, with clear implications for the pace of monetary easing by the respective central banks. In New Zealand, GDP contracted 0.9% in the June quarter - a result significantly weaker than the RBNZ’s forecast. In contrast, Australia’s economy expanded 0.6% over the same period, while monthly inflation surprised to the upside, with CPI rising 3.0% year-on-year.

Freightways was the strongest performer during the month, gaining 15.4%. The stock has now gained more than 30% year to date, as investors continue to recognise its reputation as a well-managed business that has effectively navigated the economic cycle while steadily expanding its market share on both sides of the Tasman. In New Zealand, operations such as NZ Couriers and Post Haste provide strong leverage to any domestic recovery, while in Australia, the Allied Express courier unit continues to perform well.

Infratil had a strong month, rising 8.7%. At its investor day, the company highlighted continued strength and execution in its US renewables business, Longroad. Positive news also followed from its data centre business, CDC, which announced 100MW of new contract wins. This brings contracted revenue to 95% of CDC’s FY27 EBITDA guidance of $660m, significantly reducing the risk of missing that target - a key focus for investors.

Stride Property Group rallied 9.8% during the month. While there was no specific company news, lower interest rates are encouraging investors to shift funds from term deposits into relatively defensive, higher-yielding opportunities. Stride, like several other REITs, continues to trade at a significant discount to its net tangible assets, making it an attractive option for yield-seeking investors who think this discount is likely to narrow in the months ahead.

EBOS (-6.7%) was the weakest performer during the month. Shares in the healthcare products supplier and distributor extended their sell-off following August’s results, which disappointed the market with higher costs and slower-than-expected revenue growth. Some of the pressure eased later in September, as the stock was added to the ASX 200 index (prompting index-related buying) alongside receiving an upgrade from a local broker house.

Returns to the 30th of September 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 30th of September 2025: $ 8,209,867,272