Whakarāpopototaka mākete / Market Commentary
Market Summary
This market update is for the three months to 30 June 2026.
June 2026 saw central banks around the world working to control inflation. The European Central Bank and Bank of Japan raised interest rates by 0.25%, while the US Federal Reserve kept rates steady. The US and Iran continued talks on an agreement to reopen the Strait of Hormuz shipping channel, which sent oil prices down. This drop in oil prices helped to ease inflation worries, although volatility remains globally.
At the same time, share markets saw investors move money out of technology companies into more defensive sectors.
Overseas shares, measured by the MSCI World Index (in local currency), declined 0.1% as markets took a breather and investors pivoted from technology to sectors like healthcare and manufacturing. There are some questions around whether companies can maintain heavy spending on artificial intelligence which may continue to plague market confidence.
New Zealand shares, measured by the S&P/NZX 50 Index with Imputation Credits, gained 2.9% during June. Business confidence jumped to 36.6, its highest level since February, as falling oil prices made impact. The New Zealand dollar fell 5.7% during June, dropping to its lowest level in seven months as concerns about economic growth continued.
Strong demand in key areas like data centres and healthcare propped up listed property this month as investors turned to the real assets growth sector. US ten-year government bonds offered strong yields during June, providing attractive income for investors. Corporate bonds from quality companies were also in high demand. Locally, New Zealand government bonds, measured by the S&P/NZX NZ Government Bond Index, gained 1.3%.
All three Whai Rawa funds were positive for the quarter to 30 June 2026.
For the quarter our Tōtara-Conservative Fund returned 3.28%, our Mataī-Balanced Fund returned 7.37% and the Rātā-Growth Fund returned 9.40%.
These returns are after fees and taxes (at a 28% prescribed investor rate or PIR).
How does this affect my Whai Rawa account?
It’s important that with any investment you are prepared for ups and downs in your balance and that the fund you choose fits with your risk profile and timeframe for investing. Your investment is designed for the long term, and ups and downs through these periods over time is expected.
How do I know if I’m in the right fund for me?
Take our 5-question risk quiz on our website to ensure your fund choice and risk profile match. Head to www.whairawa.com/riskquiz.
