Investment Knowhow – September quarter 2026 in review.
The September quarter saw financial markets navigate a mix of resilient economic growth, persistent inflation pressures and heightened geopolitical uncertainty. While global share markets remained relatively strong, rising oil prices and changing interest-rate expectations created challenges for fixed-interest investments.
In this commentary, we look at what supported markets during the quarter, the key risks we are monitoring, and we answer the question “What is your money helping to make possible?”
What went well?
Global shares generally gained ground. Markets were supported by company earnings and continued investment in artificial intelligence, particularly in the US.
Economic growth held up. US business investment and consumer spending continued to support economic activity.
New Zealand shares finished the quarter higher. Despite falling in the month of September, the NZX 50 rose around 1.6% over the September quarter.
New Zealand’s outlook is improving in some areas. A gradual economic recovery is expected to support household spending and business activity over time.
What captured our attention?
Inflation risks increased. Higher oil prices linked to conflict in the Middle East raised concerns that inflation could remain elevated for longer.
Interest rates moved higher. The Reserve Bank of New Zealand lifted the OCR (Official Cash Rate) to 2.75%, while global markets also reassessed interest-rate expectations.
Bond markets came under pressure. Rising government bond yields reduced bond prices, creating a challenging quarter for fixed-interest investments.
AI expectations remain high. Elevated technology share prices left little room for disappointment if company earnings failed to meet expectations.
Currency movements mattered. A weaker New Zealand dollar increased the value of overseas investments that were not hedged, but also raised the cost of imports.
Government debt is in focus. Rising borrowing needs in major economies are adding pressure to longer-term bond yields.
The Bigger Picture
Market Commentary – September quarter 2026
The September quarter showed that markets can perform well despite ongoing economic and geopolitical uncertainty. Global shares generally rose, supported by company earnings, economic growth and continued investment in artificial intelligence, particularly in the US.
However, rising oil prices and renewed inflation concerns put pressure on interest rates. The Reserve Bank of New Zealand lifted the OCR to 2.75%, while higher interest rates overseas made bonds less attractive and created a challenging quarter for fixed-interest investments.
Looking ahead, we are watching whether economic growth can continue while inflation comes under control. We are also monitoring the high expectations for technology companies and the impact of increased government borrowing on bond markets.
For long-term investors, the message remains the same: spread investments across different assets, maintain an appropriate level of risk and avoid making short-term decisions in response to market movements.
What is your money helping to make possible?
Investing isn’t always straightforward
Ethical investing can be challenging. Companies are complex, supply chains stretch around the world, and knowing exactly where your money goes is not always easy. At the same time, we want to achieve good long-term returns for our members without taking unnecessary risks.
Putting our values into practice
At Anglican Financial Care (AFC), our Ethical Investment Policy (EIP) guides our decisions. It brings together our Christian values, some clear exclusions and a desire to participate in the good God is doing in the world.
No approach is perfect, but having a clear philosophy and consistent process helps us put our values into practice.
For our Australasian and international shares, independent experts screen and monitor companies against our EIP criteria. If a company breaches our requirements, we sell our holding.
Our New Zealand bonds and cash are selected by our Investment Manager in line with our EIP. Included in our fixed-interest investments are direct mortgages to AFC members. We are grateful to help people in our community into their first or forever homes.
Looking beyond the numbers
We also consider the needs businesses may meet and how responsibly they operate.
Infratil invests in essential infrastructure, including data centres and renewable energy. While data centres aim to support the technology we rely on, their demand for electricity and water raises environmental concerns. Infratil’s data centre business, CDC, has invested in cooling systems designed to reduce water use. This highlights the importance of considering how companies manage their impact, not just what they provide.
Ramsay Health Care provides services in a world facing the challenges of an ageing population. Healthcare providers have an important role in improving access to care, supporting innovation and meeting changing community needs.
Ethical investing is about more than deciding what to avoid. It also means considering the contribution businesses make and how they operate.
At AFC, we seek to align our Christian values with our responsibility to act in the best interests of our members. Our aim is to invest thoughtfully, manage risk carefully and participate in opportunities that can contribute to a better future.
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.