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As we navigate the complexities of the financial landscape, it’s important to stay informed about how investment markets are performing. The second quarter of 2025 (April 1 – June 30) presented both challenges and opportunities for investors. In this article, we take a closer look at how investment markets performed over the quarter, and we highlight some of the key economic factors from across the world that influenced these outcomes.
Share market: The S&P/ASX 200 Index, which represents Australia’s top 200 companies, was up +9.5% over the quarter. Positive returns were largely due to strong performance in the finance sector, driven by some of Australia’s major banks, while retailers and technology companies also saw strong returns.
Interest rates: Australia’s inflation rate remained within the Reserve Bank of Australia’s (RBA) target range at 2.4% in Q1, unchanged from Q4 2024. Core inflation, which excludes volatile items like food and energy, slowed from 3.2% in Q4 2024 to 2.9% in Q1 2025. The RBA reduced the cash rate from 4.10% to 3.85% during the quarter but kept the rate on hold in July, despite markets expecting another cut. Markets are currently expecting two to three further rate cuts by the end of 2025.
Housing market: The Australian housing market, as measured by CoreLogic's Home Value Index (HVI), recorded an increase of +1.4% in Q2 2025, following a +0.9% increase in Q1 2025. The increase was attributed to falling interest rates, which have acted as a catalyst for renewed momentum.
Australian dollar: The Australian dollar (AUD) continued to recover against the US Dollar over the quarter, rising +5.2% from 62.5 to 65.7 cents. The increase comes off the back of a sharp drop in the AUD towards the end of 2024, that was mainly caused by shifts in US and Australian interest rate expectations and a negative outlook for the Chinese economy, which has impacted Australia's export sector.
Share market: The S&P/NZX 50 Index saw a +2.7% rise in Q2 2025, with the positive return due to strong performance in key health care and communications companies.
Housing market: Following minor monthly falls of -0.1% in both April and May, the CoreLogic Home Value Index showed a +0.2% gain in June 2025, meaning that prices over the quarter remained unchanged. The median property value nationally is now NZ$815,389.
Interest rates: The official cash rate was reduced from 3.75% to 3.25% during Q2 2025, with the market expecting a further reduction to around 3.00% by the end of 2025. New Zealand’s economy, which was in recession in Q2 and Q3 of 2024, exited recession in Q4 2024 as the economy began to grow again, helped by the recent reduction in interest rates, and the growth continued in Q1 of 2025. Inflation has moderated to 2.5% in Q1, slightly higher than the 2.2% recorded in both Q3 and Q4 of 2024.
Share market: The S&P 500 Index rose by +10.9% in Q2 2025, as volatile share markets recovered from the uncertainty around tariffs. As fear around tariffs faded, tech companies that had seen negative returns in Q1 experienced a sharp rebound in Q2 2025.
Interest rates: The Federal Reserve has kept interest rates on hold at 4.5% in all its meetings so far in 2025. This is in line with the Fed’s goals of achieving maximum employment and price stability. The Personal Consumption Expenditures (PCE) inflation rate stood at +2.3% at the end of May, while core inflation had eased to +2.8%.
The Chinese share market saw muted positive performance in Q2 2025, underperforming global shares in general. Sentiment has been helped in Q2 as China and the US agreed to cut their respective tariff rates. However weak domestic economic data in China has continued to hamper Chinese share market performance. The government continues to provide financial support to the economy, and economic growth was 5.2% in Q2 2025, down slightly from the 5.4% recorded in both Q4 2024 and Q1 2025.
Q2 2025 started off with a sharp selloff in financial markets, in response to the unveiling of severe tariffs by the US administration on global trading partners. However, investor’s fears receded later in the quarter as tariffs were paused for 90 days, and a trade deal was reached between the US and China. Later in the quarter there were elevated levels of uncertainty as conflict broke out in the Middle East, but the market reaction was muted, and tensions quickly subsided.
We continue to monitor the major drivers of markets and their impact on Resolution Life Australasian portfolios. While investing always involves managing uncertainty, the current environment is mired in elevated uncertainty. The best form of defence for portfolios is to continue to be well diversified, with exposure to a range of asset classes that can help during volatile times.
Sources:
1. S&P/ASX 200 Index Performance - ASX
2. NZX 50 Index Performance – NZX
3. S&P500 Index Performance - US
4. Reserve Bank of Australia Monetary Policy - RBA
5. Reserve Bank of New Zealand Official Cash Rate - RBNZ
6. Australian House Prices – CoreLogic Home Value Index
7. NZ house Prices – CoreLogic Home Value Index
8. Australian Bureau of Statistics - ABS
9. FactSet
10. Bureau of Economic Analysis – BEA
11. Trading Economics
Links to sources
• Modest value growth in NZ property re-emerges in June | CoreLogic New Zealand
• Falling interest rates drive an acceleration of growth in housing values through Q2 | CoreLogic Australia
• Consumer Price Index, Australia, March Quarter 2025 | Australian Bureau of Statistics
• Personal Consumption Expenditures Price Index | U.S. Bureau of Economic Analysis (BEA)
• United States Core Inflation Rate
As part of a recent review, we will be changing the investment name, strategy, objective, strategic asset allocations (SAA), ranges and Standard Risk Measure (SRM) band for some investment options to simplify our investment menu.
We are making these changes to help achieve the stated investment objective of the options, seek to improve overall investment performance, deliver ongoing value and provide benefits of scale for our customers. The fees and costs remain unchanged.
You can view details of the changes here.
The Investment Report will be updated progressively with the changes. For a list of all available investment options, click here and select an investment type and product name from the drop-down box, then click on the Investment Report.
Following a strategic review, we’re aligning and uplifting all capital guaranteed investment options offered by the National Mutual Retirement Fund and Resolution Life. These changes will help ensure the customer’s investment remains sustainable, returns are improved, and their balance grows.
In July 2025, for Personal Super Bond and Personal Investment Bond customers, we are closing the Guaranteed – Old investment option and moving the balance to the existing Guaranteed option which has the same risk and return profile. Then from 1 August 2025, we’re making changes to the Guaranteed option.
Our changes aim to generate higher crediting rates over time, while maintaining low volatility in the customer’s returns and ensuring that crediting rates will never be negative.
The immediate benefit to the customer’s account from these changes will be:
- an increase in the crediting rate from 1 August 2025 for most products (no change for Retirement Security Plan)*, and
- we’ll also deliver a one-off special bonus that will increase the capital guaranteed option balance by between 2-5% (varies by product).
* Please note, crediting rates may increase or decrease at any time without notice but will never be negative.
There will be changes to:
The investment option strategy – we’re consolidating investments across the Fund and Resolution Life so that we can increase allocations to ‘growth’ assets such as Equities and Property and to Private Credit assets within the Fixed Interest asset class. These asset classes have the potential to generate higher future investment returns. There are no changes to the capital guarantee provided.
You can view the details of the investment option strategy changes here.
Fees and deductions from the customer’s investment option – we’re changing the fees and deductions applied to the underlying investment returns of the investment option. These changes reduce the fixed percentage/management fees and increase the variable participating profit deductions. These changes better align customer’s interests and support our strategy to ensure we have a sustainable investment pool.
The Investment reports and Fees & costs documents will be updated with the changes from 1 August 2025. To view the current reports and documents, select the relevant product from the Superannuation and Investment categories at resolutionlife.com.au/performance.
Impacted Capital Guaranteed investment option customers will be notified of the changes.
Products | Investment option/s |
Accelerator Personal Superannuation Plan | Capital Guaranteed Fully Guaranteed |
Accelerator Savings Plan | Capital Guaranteed Fully Guaranteed |
Corporate Super Bond Series 1 | Guaranteed Plus |
Corporate Super Bond Series 2 | Guaranteed Plus |
Flexible Security Plan | Guaranteed |
Flexipol Investment | Guaranteed |
Flexipol Superannuation | Guaranteed |
Goldline Personal Superannuation Plan | Capital Guaranteed |
Goldline Savings and Protection Plan | Capital Guaranteed |
Guaranteed Investment Bond | Guaranteed |
Managed Investment Plan | Guaranteed |
Personal Investment Bond | Guaranteed Guaranteed - Old |
Personal Superannuation Bond | Guaranteed Guaranteed - Old |
Retirement Security Plan | Guaranteed |
Secure Investment Bond | Guaranteed |
Superguard | Guaranteed |
Superguard Guaranteed | Guaranteed |
Superguard II | Guaranteed |
Superguard Plus | Guaranteed |
Resolution Life is pleased to announce a new provision, designed to support your clients in managing their policies and provide both you and them with an opportunity to review their decisions.
We’re introducing a seven (7) business day period from the date Resolution Life receives a client initiated decrease or cancellation request, when the alteration can be reversed. While we will always act on client direction, we continue to strongly encourage clients to discuss their specific needs with their financial adviser, before making any policy changes.
How the 7-day reversal period will operate:
If you have any questions regarding this new process, please contact us on:
We know that great advice is built on trust, clarity and relevance. That’s why we’ve launched the new Client Resource Hub - a dedicated space designed to help advisers like you, engage clients effectively.
Whether you're guiding clients through premium structures, addressing missed payments, or preparing for renewals, the Client Resource Hub offers a growing suite of white-labelled tools and educational content that you can use directly in your conversations. These resources are crafted to support your advice process, reinforce the value of insurance, and help clients make informed decisions.
The initial release includes:
Each item is hosted separately for easy access and download, and we’ve kept the layout clean and intuitive - no clutter, just content that works.
This is just the beginning. We’re actively seeking feedback from advisers to shape its evolution so we can ensure the hub continues to meet the real-world needs of your advice practice and supporting your clients. You can email us your feedback.
We’re excited to introduce our new Cover adjustment tool – a powerful upgrade from the previous Premium calculation tool. Previously limited to reductions in sum insured, this enhanced functionality gives you greater control and flexibility when managing your clients’ cover through the My Resolution Life portal.
Launching 18 August 2025, the Cover adjustment tool allows you to:
• Increase or decrease your customers sum insured – all in one place
• Instantly receive updated quotes and cover options to discuss with your client
• Modify waiting and benefit periods with ease
• As the adviser, you can initiate the quote for the customer and submit the quote directly to us.
• Decrease your customers sum insured.
• If a customer has existing health or smoker loadings applied on their policy, a Health Assessment pop-up will appear. To review these additional loadings, you can either chat with us via the My Resolution Life website or call us.
• Streamlined process – when reducing cover, we only require the updated quote to be submitted – there is no underwriting required.
• For all insurance increases – underwriting will be required and must be accompanied by a completed application form. Updates from Resolution Life will be provided within 3-5 business days.
The tool will be available to advisers from Monday, 18 August 2025.
What advisers should know when clients make a change via the tool
• The tool will be available for customers to access from Monday, 25 August 2025.
• The customer is opted in by default to notify their adviser when they request a quote
• If your client has requested and accepted a change to their cover directly with Resolution Life, they are entitled to a 7-business day cooling off period from the date of lodgement.
Please be aware that any changes in insurance cover may affect your commission.
• Elevate Insurance
• Resolution Life Insurance
• Risk Protection Package
• Owner/Driver Income Protection
• Progressive Life Plan
To help you get make the most of the Cover Adjustment Tool, we’ve created a step-by-step user guide. For further assistance please contact us.
We’ve recently launched a personalised digital campaign aimed at insurance customers aged 50 to 59. Designed to reaffirm the value of life insurance at this important life stage, the campaign delivers rich, relevant content that highlights cover flexibility, ongoing coverage benefits, and the enduring importance of protection. Our goal is to equip customers with clear, actionable insights into how their policies continue to support their evolving needs and options to adapt coverage to life’s changes. Learn more in our Life insurance for over 50s section.
In recent months Resolution Life has contacted certain customers, who hold AC&L Insurance and/or Risk Protection Package products, to notify them of upcoming refund payments and/or future premium reductions.
Later this week, we’ll be contacting the final group of customers within the abovementioned products who are eligible for a refund and/or premium reduction; after which time this refund activity will come to a close.
If you believe you have clients who may be affected by the changes, further information and support is available here. Additionally, your Adviser Support Manager or Strategic Partnership Manager are also available to help you in supporting your clients: advisersupport@resolutionlife.com.au.
With over two decades of experience in financial services, Andrew Martin brings a wealth of knowledge and a deep passion for helping advisers deliver meaningful retirement outcomes. From running his own Financial Advice business to working as a BDM with AMP North and as Partnership manager at AMP.
Andrew thrives on building strong, collaborative relationships with financial advisers and is especially passionate about retirement planning and strategic advice solutions that truly enhance clients’ lives, bringing his expertise to support our Retirement Product solutions across the Southern states.
Outside of work, Andrew is a proud father who enjoys cheering on his kids at basketball games, spending time on the water fishing, and supporting the Kangaroos in the AFL.
To connect with Andrew, please reach out at 0493 396 777 or via email at Andrew.martin@resolutionlife.com.au.
Where the information on this website is factual information only, it does not contain any financial product advice or make any recommendations about a financial product or service being right for you. Any advice is provided by Resolution Life Australasia Limited ABN 84 079 300 379, AFSL No. 233671 (Resolution Life), is general advice and does not take into account your objectives, financial situation or needs. Before acting on this advice, you should consider the appropriateness of the advice having regard to your objectives, financial situation and needs, as well as the product disclosure statement and policy document for the product. Any guarantee offered in the product is only provided by Resolution Life. Any Target Market Determinations for our products can be found at resolutionlife.com.au/target-market-determinations.
Resolution Life does not make any representation or warranty as to the accuracy, reliability or completeness of material on this website nor accepts any liability or responsibility for any acts or decisions based on such information.
Resolution Life can be contacted at resolutionlife.com.au/contact-us or by calling 133 731.