MAS investment update: staying focused through a volatile quarter

The latest Morningstar data is a timely reminder of just how volatile markets have been over the past quarter - and why discipline matters.

Across most major asset classes, returns over the recent March quarter were soft. Global equities have seen declines over the period, listed property remains under pressure, and even traditionally defensive assets such as bonds have delivered muted or negative returns. This reflects a challenging backdrop for investors, as higher oil prices have added to inflation pressures and increased expectations that interest rates could move higher. The result has been broad-based volatility across both growth and income assets.

How MAS funds performed

Similar to most managed funds, the funds in the MAS schemes were impacted by the market conditions over the past quarter, with our growth assets (shares) experiencing the same short-term volatility seen globally. This is consistent with the role growth assets play in delivering stronger outcomes over the longer term.

There has also been clear consistency in how the funds have behaved across the range:

• More conservative funds have remained relatively stable compared to the more growth orientated funds.
• Diversification has continued to play its role across portfolios.

MAS’ well-constructed, diversified suite of funds, provides options to suit a range of investment needs, with each fund aligned to a different level of risk.

Moving on from the March quarter, performance over April 2026 reflects the resilience of the MAS fund range following a strong April rebound.

Strong relative performance over time

Despite short-term volatility, funds in the MAS KiwiSaver Scheme continue to demonstrate strong long-term relative performance, as highlighted by peer rankings in the March 2026 Morningstar KiwiSaver 360 report:

• MAS KiwiSaver Scheme Moderate Fund: ranked 2nd over 10 years
• MAS KiwiSaver Scheme Aggressive Fund: ranked 3rd over 10 years

The Cash Fund in the MAS KiwiSaver Scheme has also delivered strong short-term outcomes, ranking 1st over both 3 months and 1 year, reflecting its role as a defensive allocation providing stability and capital preservation during periods of market uncertainty. Longer term rankings for the Cash Fund in the MAS KiwiSaver Scheme are also strong, ranking 2nd over the 10-year period.

These rankings reinforce the consistency and competitiveness of MAS’s investment approach across different risk profiles and time horizons.

Navigating the current environment

The past quarter has highlighted several key dynamics for investors: higher-for-longer interest rates weighing on valuations – particularly in property and growth assets – ongoing volatility across global equity markets, and periods where both equities and bonds moved in the same direction, limiting the usual benefits of diversification.

While market volatility can be uncomfortable, it is typically temporary. For example, the S&P 500 index in the US fell to an intra-year low on 30 March before reaching new all-time highs just a fortnight later – a reminder of how quickly markets can recover and the importance of staying invested.

Staying deliberate about what matters

Rather than reacting to short-term market movements, MAS remains focused on the fundamentals that drive long-term outcomes: long-term performance supported by optimised exposure to growth assets, diversification to help manage risk across different environments, and consistency to ensure portfolios remain positioned through both strong and challenging periods. Short-term market movements will always create noise, but the role of a long-term investor is to stay anchored to what matters over time.

The bottom line

The latest Morningstar report reflects a challenging quarter for markets – but that is part of the investment cycle.

What stands out is that, despite this volatility, MAS funds continue to rank strongly over the long term across key categories.

For MAS, the focus remains unchanged: delivering strong, consistent outcomes for members over the long term, rather than responding to short-term market swings.

To support this, MAS Members can access personalised advice from our nationwide Adviser network at no additional cost and with no minimum investment. Whether it’s setting goals, understanding projections or making sense of market shifts, our Advisers are there to help Members make confident, informed decisions about their financial future.

While past performance can provide useful context, returns are not guaranteed.

Medical Funds Management Limited is the issuer of the MAS KiwiSaver Scheme. A Product Disclosure Statement for the Scheme is available at mas.co.nz/kiwisaver.

MAS is a licensed financial advice provider. Our financial advice disclosure statement is available by visiting mas.co.nz or by calling 0800 800 627.