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The Generate Member Newsletter has been prepared by Generate Investment Management Limited. It is based on information believed to be accurate and reliable although no guarantee can be given that this is the case. Clients, directors or employees of Generate Investment Management Limited may have an interest or holding in companies and securities mentioned in the newsletter. No part of the newsletter is intended as financial advice. To see our Financial Advice Disclosure Statement, please see [insert link], For more information about the Generate KiwiSaver Scheme please refer to the Generate KiwiSaver Scheme Product Disclosure Statement. For more information about the Generate Focused Growth Trust please refer to the Generate Unit Trust Scheme Product Disclosure Statement. The issuer of both schemes is Generate Investment Management Limited, and the Product Disclosure Statements are available at generatewealth.co.nz
Welcome to the June edition of the Generate Member Newsletter.
There's no doubt 2022 has been rough for markets. But it's important to remember that market volatility is normal, the best thing you can do is stay calm and stay the course.
Markets can go up and down for all kinds of reasons - but they generally trend upwards. In fact over the last 30 years, the S&P 500 increased by 1,703%, (or 10% per year) despite many market dips and blips. That’s why all market commentators generally recommend that staying put and playing the long game will leave investors better off.
KiwiSaver is a long-term investment, and long-term performance is the goal.
And while all KiwiSaver providers have been impacted by market volatility, we're proud to still be one of the best performing providers for long-term performance. The latest data from independent observer, Morningstar, shows our Focused Growth Fund ranked 2nd for 5-year results in the multi-sector aggressive category, the Growth Fund ranked 4th for 5-year results in the multi-sector growth category, and our Moderate Fund ranked 1st for 5-year results in the multi-sector moderate category^.
Performance of the Generate Funds
Share markets struggled in May with covid-19, geo-political tensions and inflation and covid-19 continuing to drive volatility. This was reflected in the performance of the funds.
Returns to 31 May 2022 (after fees* and before tax).
3 Year (p.a.)
5 Year (p.a.)
Focused Growth Fund
Focused Growth Managed Fund
*Except the $3 per member per month administration expense that is charged to KiwiSaver members.
** The Generate KiwiSaver Scheme funds opened on 16 April 2013. The Generate Focused Growth Trust opened on 1 November 2019.
Note: Past performance is not necessarily an indicator of future performance. Generate’s fund updates can be found here
Inflation and central bank tightening continued to be cause for concern. The US stock market, as measured by S&P500, fell over -7.5% during the month before recovering in the last week of May to close just -0.7% lower. The volatility came as markets tried to gauge the impact of higher interest rates driven by more hawkish central banks. China persisted with lockdowns of major cities which added to both global growth concerns and further supply chain disruptions...
Top Holdings as of 31 May 2021
T Rowe Price Global Equity Fund
Magellan Global Fund
Worldwide Healthcare Trust
|European Opportunities Trust|
|Magellan Global Fund (Closed Class)|
Property and Infrastructure
Fisher & Paykel Healthcare
Westpac Term Deposits
Investore Property Bonds
Precinct Property Bonds