Generate Fund Performance - September 2026

International Equities 

Global equity markets were mixed during September. The MSCI World and S&P 500 both finished the month slightly lower, while the technology-heavy Nasdaq 100 rallied 3.2%, reflecting investors' continued preference for companies benefiting from artificial intelligence and digital infrastructure trends. Performance across the market remained relatively narrow, with AI-related businesses accounting for much of the positive momentum.

Meta Platforms was the standout performer within the portfolio, gaining approximately 26% during the month. Investor enthusiasm followed a series of significant AI-focused product announcements, including a new generation of smart glasses, a substantially lighter virtual reality headset, and expanded capabilities for its AI assistant, Muse. Importantly, the announcements reinforced the view that Meta's investments in artificial intelligence are evolving beyond standalone products into a broader ecosystem designed to integrate AI into everyday consumer experiences. The market responded positively to the increasing commercialisation of these initiatives and Meta's growing leadership position in consumer AI.

Several of the portfolio's AI infrastructure holdings also delivered strong returns. Applied Materials (+11%) generated a double-digit gain during the month. The company is one of the world's leading suppliers of semiconductor manufacturing equipment and continues to benefit from increasing capital expenditure across the global semiconductor industry. Investor confidence was supported by the growing requirement for advanced chip manufacturing capacity to meet accelerating AI-related demand.

Lumentum (+6%) performed strongly as investors continued to anticipate rising demand for advanced optical networking equipment required to support the rapid expansion of AI data centres. As hyperscale technology companies accelerate investment in AI infrastructure, demand for the high-speed connectivity solutions provided by Lumentum remains a key beneficiary.

Micron Technology (+11%), one of the world's largest manufacturers of memory and storage semiconductors, was another notable contributor. The shares continued their strong year-to-date performance before the company delivered an impressive earnings result late in the month. Data centre revenue increased more than tenfold from the prior year, highlighting the extraordinary demand for high-bandwidth memory products used in AI servers and advanced computing applications. The result reinforced Micron's position as a critical supplier within the AI ecosystem and further strengthened confidence in the long-term outlook for memory markets.

On the downside, consumer and business information provider Experian (-19%) underperformed during the month despite limited company-specific news flow. The shares declined as investors rotated capital away from more defensive growth businesses and towards higher-beta technology and AI-related beneficiaries. While market sentiment weighed on near-term performance, Experian continues to benefit from its leading position in consumer and commercial data analytics, with underlying business fundamentals remaining sound.

Blackstone (-22%) was also sharply weaker during the month. Alternative asset managers generally experienced softer performance as investors became increasingly selective across financial stocks following a period of strong gains earlier in the year. Despite the share price weakness, Blackstone remains well positioned to benefit from the continued expansion of private markets and growing institutional demand for alternative investment solutions

READ MORE

• Smart strategies to grow your KiwiSaver savings
• Market outlook for 2026 - what 2025 taught investors
• Open a Managed Fund

New Zealand & Australian equities

September was a weaker month for Australasian equities, with the NZX50 declining 2.5% and the ASX100 Industrials falling 1.1%. Higher bond yields and renewed inflation concerns weighed on investor sentiment. Rising oil prices added to inflation pressures, pushing expectations towards tighter monetary policy and putting pressure on interest-rate-sensitive shares. Despite the softer market backdrop, several portfolio holdings delivered strong positive returns, supported by company-specific developments and improving investor confidence.

CSL was the strongest contributor during the month, advancing 8.8%. Shares in the healthcare name continued to recover from the post-result weakness experienced earlier in the year as investor confidence gradually rebuilt. News flow from Seqirus was incrementally positive, with CSL announcing the successful completion of its 2026/27 influenza manufacturing campaign and an expansion of vaccine availability in the United States. Investor sentiment was further supported by broker commentary highlighting potential upside from competitor supply disruptions, while encouraging Phase 3 influenza vaccine efficacy data reinforced the long-term strength of the franchise. Much of the share price appreciation reflected a recovery from previously depressed expectations rather than a material upgrade to earnings forecasts.

Mercury NZ gained 6.3% during the month. Sentiment towards New Zealand electricity generators remained constructive following a relatively supportive FY26 reporting season. The broader electricity market backdrop also remained favourable, with ongoing discussion around security of supply, rising electricity demand, and the need for significant new generation investment. These factors continue to support established renewable generators such as Mercury, which are well positioned to benefit from future industry investment and demand growth.

Vulcan Steel rose 5.9% over the month. There was limited company-specific news flow, with the share price appearing to benefit from a rebound following weakness in the prior month. The position in the steel processor and distributor was established during August, and it was encouraging to see positive early performance as the investment thesis develops. We continue to view Vulcan as an attractive business with exposure beyond traditional residential construction, including roofing and other segments where demand is driven more by repair and replacement activity than new housing construction.

On the downside, online automotive marketplace business CAR Group declined 17.4%. There was little company-specific news, with the shares caught up in a broader sell-off across software and technology-related businesses. Market concerns intensified following the launch of Meta's new Muse application, which heightened investor debate around the potential disruptive impact of artificial intelligence on software business models. The resulting sector-wide weakness weighed heavily on valuation multiples despite no material change to CAR's underlying operating performance.

SEEK fell 16.0% during the month. In addition to the broader software sector sell-off, investors also focused on the job advertising platform’s domestic economic exposure. Concerns that Australian economic growth is moderating led to fears of a softer employment market, potentially reducing hiring activity and job advertisement volumes across SEEK's platform. While these concerns impacted sentiment during the month, the business remains the dominant employment marketplace across its key markets.

Returns to the 30th September 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.

^ 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 September 2026

Generate total Funds Under Management (FUM) as of 30th of September 2026:
⁠$ 10,677,110,653.91