Watch Mike’s video here, or read on for the full story.
The AI-led bull market paused briefly in November before resuming its powerful run. A combination of sector-wide profit-taking and a more hawkish US Federal Reserve sparked a healthy correction in some of the year’s biggest winners. Companies such as Rocket Lab and Palantir fell sharply, reminding us that volatility is a natural companion to early-stage technological revolutions - not a signal that the trend is over.
But the pullback wasn’t universal. Google hit a new all-time high on progress with its Gemini 3 AI model, while gold proved a steady diversifier and outperformed Bitcoin. Global markets were mixed: Australia and Japan lagged, while the S&P 500 recovered strongly to finish the month nearly flat.
Celebrating a milestone year for Pie Funds and our clients
November also marked our biggest annual investor roadshow yet. Across six events and five cities, more than 1,000 of you joined us - an extraordinary turnout and a highlight of my year. It reinforced what we’ve been feeling for months: 2025 has been a landmark year, both for global markets and for our clients’ portfolios.
This year, two of our funds reached a 10x return for our earliest investors - an exceptional feat and, to my knowledge, unmatched by other New Zealand fund managers. And together, we passed a personal milestone I set almost five years ago: over $1 billion in wealth created for our clients. Sharing that moment face-to-face made this year’s roadshow especially meaningful.
If you missed the roadshow, you can watch the videos here.
Navigating volatility - and using it to your advantage
After a strong run into October, our funds experienced a modest pullback before rebounding into month-end. The underlying theme remains clear: AI investment is accelerating, not slowing. Companies and countries alike are racing toward artificial general intelligence (AGI), a hypothetical type of AI that can perform any intellectual task that a human can. It’s estimated this breakthrough would be valued at an extraordinary US$1.46 quadrillion (source: The Economist, Inside Tech, November 2025).
History shows that volatility is part of every major technological cycle. During the tech boom of the 1990s, markets corrected more than 10% on a dozen separate occasions. Those who stayed invested - and added during downturns - were the ones who benefited most.
On the roadshow, I shared the three choices investors face with a fund targeting 10% p.a. over a decade:
- Sell during declines and dilute long-term returns.
- Stay invested and earn the fund’s long-term return.
- Add capital during pullbacks to potentially enhance long-term outcomes.
Personally, I used the recent correction to add to my own positions. These periods remain, in my view, opportunities - not threats - for building long-term wealth.
The power of diversification
November also reinforced the value of diversification. Our Property & Infrastructure Fund rose during the month, helping offset volatility elsewhere. If your Pie portfolio is heavily weighted toward just one or two Australasian funds, consider broadening your exposure. Our global funds - including the Global Growth 2 Fund, up strongly this year - provide access to world-class companies positioned at the forefront of AI and digital transformation.
As always, I invest alongside you. My personal portfolio is diversified across all our investment funds and in our Pie KiwiSaver Growth Fund.
Looking ahead to 2026
We’ll share our full 2026 outlook next month, but our view today is clear: we remain optimistic. Structural trends in AI, productivity and innovation are still in their early stages, and the recent correction offers an attractive entry point for long-term investors. With strong fund momentum, record client engagement, and solid foundations heading into the new year, 2026 is shaping up to be another exciting chapter.
From all of us at Pie, I wish you and your family a safe, joyful and restful holiday season.
Information is current as at 3 December 2025. 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.