Fund watch
How has the fund performed?
| Performance as at 31 March 2025 | 3
months (%) |
1 year (%) |
3 years (% p.a.) |
5 years (% p.a.) |
10 years (% p.a.) |
| MFL Mutual Fund | -5.06% | -1.44% | -3.07% | 6.53% | 4.94% |
Performance is after the annual fund charge and before tax.
The New Zealand listed property sector struggled over the quarter, dragged down by the broader equity market weakness. The listed property index fell 4.3%, with eight of the 10 companies that make up the index ending in negative territory. The 4.3% decline was ahead of the NZX 50’s 6.4% fall. Across the Tasman, the Australian property sector also struggled, falling 6.8%. Its performance was well behind Australia’s ASX 200, which declined 2.8%.
During the quarter, the Reserve Bank of New Zealand (RBNZ) cut the Official Cash Rate (OCR) by 50 basis points, responding to a prolonged period of sluggish growth and falling inflation, while in Australia the Reserve Bank of Australia (RBA) cut interest rates for the first time since the pandemic emergency rate cuts. It became one of the last developed economies to pivot on its interest rate policy.
In economic data, the New Zealand unemployment rate jumped to 5.1%, up from 4.8%, while GDP expanded by 0.7% in the final quarter of 2024. Elsewhere, inflation held steady in the final quarter of 2024, with prices rising 2.2% over the 12-month period. And in Australia, the employment report for February was mixed with the economy losing more than 50,000 jobs. However, the unemployment rate remained steady at 4.1%. Against the backdrop of a challenging period for property stocks, the MFL Property Fund fell 5.06% over the quarter.
Contributing to fund performance was largely driven by its overweight position to Marsden Maritime Holdings Limited, which saw its shares rise more than 50% over the quarter. The big jump came after the news that a consortium of investors, including Port of Tauranga Limited, Northland Regional Council and Ngāpuhi Investment Fund, would acquire all of Marsden Maritime Holdings shares, other than those already held by the Northland Regional Council. Under the deal, shareholders would receive NZ$5.60 per share, representing a near-75% premium to Marsden Maritime Holdings share price of NZ$3.24 at market close, prior to the announcement.
Other positive contributors included overweight positions to aged-care operator Regis Healthcare Limited, and Aspen Group Limited, which saw their share prices finish the quarter up 13.7% and 12.9% respectively. Regis Healthcare has continued its strong run, benefiting from a supply shortage in the aged-care sector and positive demographic trend, notably an aging population.
Offsetting some gains were overweight positions to retirement sector companies, Ryman Healthcare Limited, Oceania Healthcare Limited and Summerset Group. Ryman shares were off 37% after it raised $1 billion capital at a deeply discounted price ($3.05 vs $4.31 at close the day prior) to address its elevated debt and a deterioration of its trading performance. The negative trading update weighted severely on the sector, despite decreasing interest rates, with Oceania’s share price reaching a one year low (-16% over the quarter), and Summerset dropping by -13%.
This article has been prepared by ANZ New Zealand Investments Limited (‘ANZ Investments’) for information purposes only and it should not be treated as financial advice.
MFL Mutual Fund Limited is the issuer and manager of the MFL Mutual Fund. ANZ Investments is the investment and administration manager. ANZ Investments is not an authorised deposit taking institution (ADI) under Australian law and investments in the scheme aren’t deposits in or liabilities of ANZ Bank New Zealand Limited, Australia and New Zealand Banking Group Limited, or their subsidiaries (together ‘ANZ Group’). ANZ Group doesn’t stand behind or guarantee ANZ Investments. Investments in the scheme are subject to investment risk, including possible delays in repayment, and loss of income and principal invested. ANZ Group won’t be liable to you for the capital value or performance of your investment.
Past performance does not indicate future performance, and performance can be negative as well as positive. This material is for information purposes only. We recommend seeking financial advice about your situation and goals before getting a financial product.