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The fund invests in a broad selection of NZ dollar denominated bonds issued by Governments, Government entities, banks and companies, providing investors with a regular income. The fund may experience modest ups and downs in value.
Risk Indicator (volatility)
Target Asset Allocation
This number indicates the relative 'risk' level of this fund based on the types of assets it is invested in, ranging from level 1 (least risky) to 7 (most risky).
| Risk category | Description of volatility |
| 1 | Very low |
| 2 | Low |
| 3 | Medium |
| 4 | Medium to High |
| 5 | High |
| 6 | Very high |
| 7 | Extremely high |
The risk indicators are calculated using returns of the funds, the returns of the fund’s market index or a combination of both, for the previous five years. Index returns or a mix are used if the fund has existed for less than five years. All Managers are required to use the same methodology so you can compare the risk of different funds if you are researching more than one manager.
Ian is a Fixed Income Manager here at Amova. In this video, Ian talks about the Amova NZ Bond Fund and describes what this fund aims to achieve in terms of returns. Ian also explains what sets this fund apart from the rest and why you should consider the NZ Bond Fund for your next investment.
| One month | Three months | One year | Three years (p.a) | Five years (p.a) | |
|---|---|---|---|---|---|
| Fund performance1 | 0.04 | -0.02 | 1.85 | 5.54 | 1.72 |
| Appropriate Market Index (AMI)2 | 0.09 | 0.13 | 2.42 | 5.53 | 1.56 |
AMI (appropriate market index) is a theoretical portfolio with similar underlying assets as the fund. This allows investors to see a comparison of how the value of those assets have changed in the market relative to the fund.
| Security Name | Percentage |
|---|---|
| NZ Government 2.75% 15/04/2037 | 8.48% |
| NZ Government 150541 1.75 GB | 7.60% |
| NZ Government Bond 2% 15/05/2032 | 6.77% |
| New Zealand Government 150536 4.25 Gb | 5.98% |
| NZ Government 150534 4.25 Gb | 5.27% |
| Westpac New Zealand Ltd 240929 4.34 Cb | 3.53% |
| Kiwibank Ltd 111229 4.746 Cb | 3.49% |
| NZ Government 150535 4.50 Gb | 3.18% |
| Bank Of New Zealand 191129 4.889 Cb | 2.69% |
| ASB Bank 4.1% 02/09/30 | 2.47% |
Commentary
As of 31 August 2026
Bond returns were a modest positive for August, with the fund returning 0.11% - slightly ahead of its benchmark, the Bloomberg Composite, which returned 0.09%.
The modest move higher in interest rates was the dominant effect on returns over the month. The longer-duration position was unhelpful as interest rates moved modestly higher. Credit holdings continue to add value through higher yield, with margins stable. We continue to participate in new bond deals and although credit margins are narrower there doesn’t appear a catalyst for a meaningful expansion in margins. The high-quality credit holdings and longer-duration positioning, combined with a steep yield curve, continue to support a higher fund yield, and we expect carry and roll to support returns over the medium term.