While one year results can vary, they can also highlight how positioning and investment decisions are playing out in current market conditions.
That makes this result meaningful for members - and also relatively rare. The two funds are designed differently, with different levels of growth and defensive assets, so they don’t often lead their categories at the same time.
What’s driven this result
A large part of the answer sits in our global investments.
Over the past year, returns in global markets have been concentrated in a relatively small group of companies - particularly those linked to the build-out of artificial intelligence infrastructure. This includes semiconductor companies, large technology platforms, and the broader supply chain supporting data centres, networking and power.
We’ve had meaningful exposure to these areas across our KiwiSaver funds, and that has been a key contributor to performance.
Just as important has been what we haven’t owned.
We’ve had limited exposure to parts of the software sector where business models are coming under pressure. In particular, some subscription-based software companies are starting to feel the impact of AI - through changing usage patterns and increasing pressure on pricing.
Several of these companies have fallen sharply over the past year. Avoiding that part of the market has been almost as important as being invested in the areas that have performed well.
This result reflects the way we’ve positioned portfolios - with exposure to areas driving returns globally, and discipline in avoiding parts of the market where risks are building.
What this means for members
For existing KiwiSaver members, this is a good example of how active management can make a difference - not just in finding opportunities, but in avoiding areas where risks are building.
KiwiSaver is a long-term investment, and outcomes are driven by decisions made consistently over time - not just over a single year.
Markets won’t always be this concentrated, and leadership will change. Strong short-term results often attract attention, but they don’t always persist. What matters more is how a fund is positioned across different market environments.
Our focus remains the same: building portfolios that can perform through a range of conditions.
A timely reminder
KiwiSaver isn’t something most people review often - but it should be.
Differences in performance and positioning can add up meaningfully over time, particularly through changing market cycles.
If you’re not currently with the Pie KiwiSaver Scheme, it’s worth understanding how your fund is invested, and whether it’s set up for where markets are heading - not just where they’ve been.
You’re just 2 minutes away from starting your journey with the Pie KiwiSaver Scheme.
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1. Morningstar KiwiSaver 360 report, March 2026 quarter.
Information is current as at 1 May 2026. Pie Funds Management Limited ("Pie Funds") is the manager and issuer of the funds in the Pie Funds Management Scheme and Pie KiwiSaver Scheme (the “Schemes”), the product disclosure statements of which can be found at www.piefunds.co.nz. Any advice is given by Pie Funds and is general only. Our advice relates only to the specific financial products mentioned and does not account for personal circumstances or financial goals. Please see a financial adviser for tailored advice. You may have to pay product or other fees, like brokerage, if you act on any advice. As manager of the Schemes' investment funds, we receive fees determined by your balance and we benefit financially if you invest in our products. We manage this conflict of interest via an internal compliance framework designed to help us meet our duties to you. For information about how we can help you, our duties and complaint process and how disputes can be resolved, or to see our disclosure statement, please visit www.piefunds.co.nz. Please let us know if you would like a hard copy of this disclosure information. Past performance is not a guarantee of future returns. Returns can be negative as well as positive and returns over different periods may vary. The information is given in good faith and has been derived from sources believed to be reliable and accurate. However, neither Pie Funds nor any of its employees or directors gives any warranty of reliability or accuracy and shall not be liable for errors or omissions herein, or any loss or damage sustained by any person relying on such information, whatever the cause of loss or damage. No person, including the directors of Pie Funds, guarantees the repayment of units in the Schemes or any returns of units in the Schemes.