Watch Mike’s video here, or read on for the full story.
August delivers despite a few wobbles
August gave us a bit of everything. We had two small corrections along the way, but overall markets finished the month strongly. The usual suspects - tariffs, AI spending, inflation, and interest rates - kept investors on their toes, yet conditions stayed surprisingly calm. In fact, the VIX, Wall Street’s fear gauge, hit its lowest level of the year. Every dip was met with buyers happy to jump back in, which tells you confidence is still there.
Strong results for Pie
For our funds, August was a great month. Small caps in the US and Australia really ripped higher, and as a result some of our funds posted gains close to 10% for the month. Those are fantastic numbers by any measure. The rally was driven by optimism that interest rates are heading lower and by a strong rebound in resources stocks.
Gold shines as a safe haven
And let’s not forget gold. I’ve been banging the drum on gold for a while, and August showed why. Gold’s rally has been nothing short of impressive - I’d say it’s been running really hot. The reasons are clear. Central banks and big investors want to diversify away from the US dollar. Governments are running up deficits, which stirs inflation concerns. And geopolitics keeps reminding us why gold is the classic safe haven.
For investors, gold continues to be a useful ballast - something that can hold its ground while the rest of the market moves around.
September: time for a breather
So, what about September? After such a strong run, I think markets are due for a breather. This time of year can be a little tricky anyway, and there are plenty of catalysts out there that could trigger some volatility. To borrow from Green Day - wake me up when September ends.
That said, a pullback isn’t necessarily something to fear. It’s part of the normal cycle.
Don’t overthink corrections
The key thing to remember is that the bigger picture still looks good. Markets have strong tailwinds behind them, from AI investment to easing monetary policy. In my experience, investors often lose more money preparing for corrections than during the corrections themselves.
So while September might be choppier, the long-term story remains intact. Stay invested, stay disciplined, and don’t let the noise knock you off course.
That’s a wrap
August gave us plenty to smile about, with strong fund performance and gold shining brightly. September may feel a bit bumpier, but the road ahead is still paved with opportunity. At Pie, our focus remains the same: protect capital, capture growth, and help our investors stay the course through all market conditions.
Information is current as at 31 August 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”). 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 product disclosure statements for the Schemes, 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.