Our Managed Funds

Amova NZ Corporate Bond Fund

 

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About the fund

The fund invests in a selection of NZ dollar denominated bonds issued by banks and companies, providing investors with a regular income. The fund may experience modest ups and downs in value. 

Risk Indicator (volatility)

Lower riskHigher risk
1
2
3 Medium
4
5
6
7
Potentially
lower returnsPotentially
higher returns
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Target Asset Allocation

Income 100.00%

Risk Indicator (volatility) Scale

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.

Find out more about the Amova NZ Corporate Bond Fund from Fergus McDonald

Fergus is the head of Bonds and Currency at Amova. In this video, he explains what an average day in his job looks like, what he's trying to achieve with this portfolio, and what he see's as a good investment. Fergus also talks us through the investment process and outlines the main reasons why you should consider the Amova NZ Corporate Bond Fund for your next investment.

Commentary

As of 31 July 2026

Market Overview

  • It was a tough month for New Zealand bonds as interest rates followed oil prices higher after the resumption of conflict in the middle east.
  • The NZ yield curve remains steeply positive, with higher yields achieved by extending maturities.
  • NZ credit margins have been resilient with demand strong versus supply.

Fund Highlights

  • The monthly fund return was dominated by the move higher in interest rates.
  • NZ government bonds outperformed similar swap maturities. Credit margins were stable and the fund remains high credit quality.
  • Looking forward, the fund is well positioned to deliver strong performance over the medium term, underpinned by carry and roll strategies in a steep, positive yield-curve environment.

Performance

Amova NZ Corporate Bond Fund
Open Close

Performance

at 31 July 2026
One month Three months One year Three years (p.a) Five years (p.a)
Fund performance1 -0.94 1.39 3.28 5.93 2.61
Appropriate Market Index (AMI)2 -0.45 1.25 3.59 6.09 3.03
  1. Returns are before tax and after the deduction of fees and expenses and including tax credits (if any).
  2. AMI: Bloomberg NZBond Credit 0+ year Index.

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.  

5 year cumulative performance $10,000 invested

Top 10 Holdings

Security Name Percentage
Bank Of New Zealand Cash at Call 3.96%
Housing NZ 1.534% 10/09/2035 2.96%
New Zealand Government 150536 4.25 Gb 2.83%
NZ Local Govt Funding Agency 150437 2.00 GB 2.50%
Bank Of New Zealand 010928 0.00 Cb 2.36%
Rabobank Nederlandnz 200231 4.40 Cb 2.30%
Insurance Australia Group Ltd 150628 5.32 Cb 2.26%
Christchurch Intl Airport 060336 5.08 Cb 2.24%
NZ Local Govt Funding Ag 3% 15/05/2035 2.18%
Rabo 5.31% 05/04/2029 2.06%