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The Generate Team
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 July 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.
While all Generate funds are positive month to date for July, June was a tough month for financial markets with global and local market indices both sustaining losses (more on this below). We continue to recommend to our members to stay the course as share markets will eventually regain their losses. Moving from a growth to conservative fund at this stage would crystalise the losses given a conservative fund won’t participate in the recovery, when it comes, to anywhere near the same extent as a growth fund. If you would like to talk to us about your KiwiSaver account please contact us.
On a brighter note, Generate was recently awarded a Consumer NZ People's Choice Award for KiwiSaver. Pleasingly, we stood out for long-term investment returns compared to other providers in Consumer NZ's KiwiSaver Satisfaction survey.
Performance of the Generate Funds
Generate funds were impacted by weak world and local equity markets in June. We remain defensively positioned heading into the Q2 earnings season and are confident in the medium and long-term potential of the companies in our equities’ portfolios.
Returns to 30 June 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
June was a weak month for global share markets, as concerns over rising inflation and the risk of economic recession increased. The US stock market, as measured by the S&P 500, declined 9.0%.
Top Holdings as of 30 June 2021
T Rowe Price Global Equity Fund
Magellan Global Fund
Worldwide Healthcare Trust
|European Opportunities Trust|
|Magellan Global Fund (Closed Class)|
Property and Infrastructure
Westpac Term Deposits
Kāinga Ora Bonds
Investore Property Bonds