Highlights and news from the past quarter at SuperLife
In this issue
From Anna’s desk:
Our 2024 results highlight our commitment to helping you grow your savings, whether through KiwiSaver, ETFs, unlisted managed funds or workplace savings schemes.
Fund Spotlight:
Investing for children? - myFutureFund is the perfect way to set them up for success.
Investing 101:
Withdrawing your savings? What you need to do.
The Stocktake:
US equities led global markets and back home, NZ equities increased by 5.8% in Q4.
Kia ora koutou,
As we step into 2025, we are excited for the year ahead as we continue to help you build long-term wealth wisely.
Whether it’s building a rainy-day fund or planning for long-term goals, we believe in the value of “time in the market” over “timing the market.” It’s never too early, or too late, to begin.
Our end of year results are a testament to the dedication of our team and the trust of you, our clients.
- Over $13 billion of investments - helping Kiwis to achieve their financial goals and grow their wealth.
- Trusted by over 89,000 New Zealanders with their KiwiSaver savings.
- 44 Exchange Traded Funds for investors to choose from to build a balanced portfolio.
- Empowering over 29,000 employees through our workplace savings schemes.
As we step into 2025, we are excited about the year ahead as we continue to help you build long-term wealth wisely.
Whether it’s building a rainy-day fund or planning for long-term goals, we believe in the value of “time in the market” over “timing the market.” It’s never too early—or too late—to begin.
We remain committed to delivering smarter service and investment options to help you achieve your financial aspirations.
From all of us at SuperLife and Smart, we wish you a prosperous and rewarding year ahead.
Ngā mihi nui,
Anna Scott - CEO
Smart (Smartshares Limited)
Fund spotlight
Give your child a financial headstart with myFutureFund for children
Did you know you can invest for your kids?
With SuperLife, you can set up a personalised investment account in their name, helping grow their savings for education, a first home, or other future goals.
Our simple, flexible investment options allow you to manage contributions, choose a strategy, and even let family or friends add to their account. It’s never too early to start—discover how easy it is to invest for your child today.
Investing 101
Withdrawing from your SuperLife investment this year? Let’s get you verified.
If you are turning 65 or looking to buy your first home and are planning to withdraw some or all your savings, you may need to provide verification details to us.
SuperLife’s obligations under the Anti-Money Laundering and Counter-Terrorism Financing (AML/CFT) Act 2009 require us to verify the identity of members, particularly if you wish to withdraw money from your SuperLife account.
For long-term members, some of the information we have for you might be outdated, so we may need to collect updated information before we can process any withdrawals. Verifying your details can make the withdrawal process more efficient.
You can update your information with us either by:
1. Electronic verification
SuperLife will send you a secure link to complete an online form.
2. Manual verification
You can send certified copies of your ID and proof of address documents via post directly to us.
For more information to see what is required and download withdrawal forms, please select ‘identity verification’ from the menu here.
If you are planning to make a withdrawal, please contact our friendly Customer Service team via email on This email address is being protected from spambots. You need JavaScript enabled to view it.
We will assist you in this process and answer any questions you may have.
The Stocktake
- US equities led global markets, with the S&P 500 gaining 8% for the quarter and achieving a second consecutive year of +20% returns.
- NZ equities gained 5.8% in Q4, finishing 11.4% up for the year.
- The NZ Dollar dropped 5.5% against the USD in Q4, finishing 12% lower for the year.
- Inflation volatility and regional uncertainties highlight the importance of global diversification to navigate opportunities in 2025.
Market sentiment was again mixed over the quarter with an increase in volatility driven by the market’s changing expectations for interest rates along with the election of Donald Trump as the next president of the United States. During the quarter, bond yields increased significantly and the advance in equity markets stalled as the outlook for future rate cuts was paired back.
Since September, the US Federal Reserve (The Fed) has cut interest rates twice - reducing the federal funds rate by 25-basis points in both the October and December meetings.
Messaging from The Fed changed significantly with less concern about weakness in the labour market and an increased focus on inflation risks.
The change saw US equity markets pull back from all-time highs, however US equities still managed to end the quarter just over 8% higher.
Strength across equity markets continued to broaden with the MSCI World Index returning 5.5% over the quarter. Developed markets outperformed Emerging markets, which were relatively flat over the quarter following greater uncertainty around proposed tariffs and a strong US Dollar.
The US Dollar (USD) continued its stellar run over the quarter as the US economy maintained positive momentum and the outlook for its interest rates strengthened relative to rates in other major economies. Against this backdrop, the New Zealand Dollar, which spent much of the year trading between 0.59-0.62 USD, broke out on the downside to end the quarter below 0.56c. This equated to a 12% decline for the year. Over the period, currency hedging detracted from fund performance, meaning that unhedged funds would have performed relatively better than their hedged counterparts.
The impact of Trump’s proposed policies is still uncertain, however the market is preparing for higher inflation from tariffs and increased government spending.
Global Equities
Global equities ended 2024 on a positive note with meaningful differences across regions. US equities finished the year on a strong note, advancing more than 8% over the quarter. Over the year, U.S. large-cap stocks led the charge delivering over 25% growth while smaller U.S. companies also saw strong double-digit returns as the advance broadened.
The S&P500 Index reported its second year in row of +20% gains. US equity markets continued to be a standout, outperforming other global markets with the MSCI World Index returning 17% and the MSCI Emerging Markets Index returning just 5% over the year. Emerging markets look to face additional headwinds with the uncertainty surrounding the economic impact of Ttrump’s proposed policies and tariffs.
NZ Equities
NZ equities performed strongly into the end of the year with the S&P/NZX 50 Index increasing by 5.8% for the 4th quarter to finish 11.4% higher for the 2024 calendar year. The bulk of this performance came in the second half of the year as several large capital raisings buoyed the local market. Of the 50 companies currently comprising the index, 27 saw positive returns in 2024 with the standout performer being Tower Ltd. The stock rose ~121% and re-entered the index after a multi-year absence. Other strong performers included Gentrack, up over 90% and Vista Group, up almost 88%.
NZ Fixed Interest
Over the quarter New Zealand bonds delivered positive performance with the S&P/NZX NZ Government Bond Index returning close to 2% and the S&P/NZX A-Grade Corporate Bond Index returning a slightly higher 3%. New Zealand Government bond yields mirrored increases offshore and were further supported by the release of the Government’s Half Year Economic and Fiscal Update in December. The Treasury noted more persistent economic weakness and a widening fiscal deficit which resulted in an increase of $20 billion to the Government bond program over the next 5 years.
Global Fixed Interest
Global fixed income assets underperformed, as bond yields rose over the quarter (bond yields and prices move in opposite directions). Yields on the benchmark US 10-year treasury note finished the quarter almost 100-basis points higher, approaching the highest levels in almost two decades. The widely followed Global Aggregate Bond Index returned just 1.4% in NZD hedged terms.
Cash
The Reserve Bank of New Zealand (RBNZ) continued its easing of monetary policy conditions in the quarter ending 31 December 2024. In October, the RBNZ stepped up the pace of rate cuts with a 50-basis point reduction in the Official Cash Rate (OCR). This was followed by another 50-basis point reduction in November, leaving the OCR at 4.25%. The market is expecting 100-basis points of interest rate cuts over the next twelve months.
Cash returns are expected to continue falling in line with the reductions in the OCR.
Check your details are correct – so we can keep you informed
Checking that your contact information is up to date is easy. Simply log in to your member portal to make sure you don't miss important updates.
Finance in full
World indices at a glance
| EQUITIES | Q4 2024 RETURN | 1 YEAR RETURN | 3 YEARS (P.A) RETURN |
|---|---|---|---|
| International | |||
| FTSE Developed All Cap Index | -0.6% | 17.4% | 6.0% |
| FTSE Emerging Markets All Cap China A Inclusion Index | -6.4% | 11.6% | 0.3% |
| S&P 500 Index | 2.4% | 25.0% | 8.9% |
| Australasian | |||
| S&P/NZX 50 Gross Index | 5.5% | 11.4% | 0.2% |
| S&P/ASX 200 Index | -0.8% | 11.4% | 7.4% |
| FIXED INTEREST | Q4 2025 RETURN | 1 YEAR RETURN | 3 YEARS (P.A) RETURN |
|---|---|---|---|
| International | |||
| Bloomberg Global-Aggregate Index | -5.1% | -1.7% | -4.5% |
| US 10-year government bond yield (%) | 4.6% | 3.8% | 3.9% |
| New Zealand | |||
| S&P/NZX A-Grade Corporate Bond Total Return Index |
1.1% | 6.8% | 2.9% |
| NZ 10-year government bond yield (%) | 4.4% | 4.2% | 4.3% |
(Data source: Bloomberg, compiled by SuperLife)
Global assets: major market movements over the last 12 months
(Source: Bloomberg)
SuperLife KiwiSaver Diversified Funds as at 31 December 2024
The investment returns shown below are for the specified periods ended 31 December, for a SuperLife KiwiSaver Scheme member (after fund charges and tax). The SuperLife Default Fund is only available to members of the SuperLife KiwiSaver Scheme.
| FUNDS | 3 MONTHS | 6 MONTHS | 1 YEAR | 3 YEARS (P.A) | 5 YEARS (P.A) | 7 YEARS (P.A) |
|---|---|---|---|---|---|---|
| Income | -0.4% | 2.1% | 2.2% | -0.1% | 0.4% | 1.2% |
| Conservative | 1.3% | 4.3% | 7.1% | 1.7% | 2.6% | 3.1% |
| Balanced | 3.0% | 6.8% | 11.7% | 2.9% | 4.7% | 4.9% |
| Default | 2.7% | 6.1% | 11.7% | 3.4% | - | - |
| Ethica | 2.6% | 7.2% | 11.8% | 2.8% | 5.6% | 5.8% |
| Growth | 4.1% | 8.4% | 15.2% | 4.0% | 6.0% | 5.9% |
| High Growth | 5.1% | 9.7% | 18.0% | 4.9% | 7.2% | 6.9% |
(Note: These figures are representative of the SuperLife KiwiSaver Scheme. Returns displayed account for fund charges and tax at 28%, but your tax rate may be lower. Past returns are not a reliable indicator of future performance.)
This information does not constitute financial advice and does not take account of personal circumstances; rather, it is designed to illustrate possibilities. As with all investment decisions, what might be the right strategy over the medium or longer term may not pay off over the very short term. No one can consistently predict what will happen over the short term. Those acting upon the information in this newsletter do so entirely at their own risk. Smartshares does not accept liability for the results of any actions taken or not taken based on this information. While every effort has been made to ensure accuracy, no liability is accepted for errors or omissions in this newsletter.
