Markets continued to navigate a mix of encouraging news and ongoing challenges during May. While global share markets remained resilient and investor confidence improved, interest rates, economic growth, and geopolitical tensions continued to influence market sentiment. Here’s a snapshot of what went well and what we’re continuing to watch.

What went well in May?

• Global share markets remained resilient – Investors responded positively to easing geopolitical tensions and generally solid company earnings.
  • Technology continued to lead the way – Strong demand for artificial intelligence-related products and services supported market growth.
  • NZ export sectors remained supportive – Dairy and agricultural exports continued to provide stability for the New Zealand economy.
  • Corporate earnings were stronger than expected – Many businesses delivered results that reassured investors about their outlook.
• Investor confidence improved – Markets became less reactive to daily headlines and more focused on long-term opportunities.

What captured our attention?

• Interest rates remain a key focus – Central banks continue to balance inflation concerns against slowing economic growth.
  • New Zealand’s economic recovery remains uneven – Higher living costs and borrowing costs continue to weigh on households and businesses.
  • Geopolitical uncertainty persists – Ongoing global tensions remain a potential source of market volatility.
  • Energy prices remain unpredictable – Any further disruption to supply could place renewed pressure on inflation.
  • The NZ share market continued to lag larger overseas markets – Domestic growth challenges remain a headwind for local companies.

Market Commentary & Healthcare Focus.

May was a month of global resilience and local caution. International share markets generally rose, supported by solid corporate earnings, easing geopolitical tensions, and continued strength in technology and artificial intelligence-related companies.

In New Zealand, performance was more subdued. Export sectors such as dairy and agriculture remained steady, but domestic activity continued to feel the impact of higher living costs and interest rates. As a result, the NZX lagged stronger offshore markets.

Interest rates remained a key influence. While inflation has eased, central banks are still cautious about when to begin cutting rates, keeping markets in a “higher for longer” environment.

For investors, this reinforces the importance of diversification and a long-term mindset, as different parts of the portfolio will continue to perform differently over time.

Healthcare continues to stand out as a more defensive sector, supported by consistent demand across economic cycles.

Investing in Healthcare.

Healthcare is a sector people rely on in every environment. Demand remains steady for medicines, hospital care, medical technology, aged care, and healthcare services, making it a long-term investment theme.

At Anglican Financial Care, our Australasian equity portfolios include healthcare companies across New Zealand and Australia, spanning medical technology, diagnostics, pharmaceuticals, services, and retirement living.

Fisher & Paykel Healthcare is a strong example of New Zealand innovation with global reach. Its respiratory care products are widely used in hospitals and homes to improve breathing and sleep outcomes, with demand supported by the global focus on more efficient healthcare delivery.

CSL is another key holding and a global leader in plasma therapies and vaccines. Its continued investment in research highlights the role healthcare companies play in both improving lives and delivering long-term value.

The portfolio also includes Sonic Healthcare, Cochlear, Ramsay Health Care, EBOS, Ryman Healthcare, and Summerset, providing exposure across diagnostics, hearing solutions, hospitals and aged care.

Long-term demand is supported by ageing populations and rising healthcare needs. The recent New Zealand Budget also reinforced ongoing pressure on the healthcare system and the need for continued investment in capacity and services.

While all investing carries risk, healthcare remains an important part of a diversified portfolio due to its essential nature and long-term demand drivers.

For investors wanting to learn more, a full list of Anglican Financial Care’s investment holdings is available on our website.

The above information is for information purposes only and is not financial advice. Past returns are not a guarantee of future returns. We recommend you seek advice from a licensed financial advice provider when making decisions about your investments.

The New Zealand Anglican Church Pension Board trading as Anglican Financial Care are the manager and issuer of Christian KiwiSaver Scheme, The Retire Fund and The New Zealand Anglican Church Pension Fund. Product Disclosure Statements and Fund Updates are available on the Documents page of the AFC website Forms and Documents.