| One month | Three months | One year | Three years (p.a) | Five years (p.a) | |
|---|---|---|---|---|---|
| Fund performance1 | 0.06% | -0.11% | 4.98% | 6.51% | 1.94% |
| Appropriate Market Index (AMI)2 | 0.24% | 0.20% | 5.27% | 6.75% | 2.51% |
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 |
|---|---|
| Bank Of New Zealand Cash at Call | 4.16% |
| Housing NZ 1.534% 10/09/2035 | 3.22% |
| NZ Local Govt Funding Agency 150437 2.00 GB | 2.81% |
| Insurance Australia Group Ltd 150628 5.32 Cb | 2.53% |
| NZ Local Govt Funding Ag 3% 15/05/2035 | 2.44% |
| Rabo 5.31% 05/04/2029 | 2.34% |
| Westpac New Zealand Ltd 160932 6.19 Cb | 2.24% |
| Dunedin City Treasury 101033 4.966 Lb | 2.18% |
| Christchurch City Hldgs 210532 4.82 Gb | 2.12% |
| Housing NZ 3.42% 18/10/2028 | 2.11% |
Commentary
As of 31 December 2025
Market Overview
− NZ interest rates moved higher over December and the quarter which weighed on bond returns.
− The NZ yield curve remains steeply positive shaped with higher yields through investing longer in maturity.
− Credit margins appear to have stabilised after a strong performance, and supply/demand dynamics remain supportive.
Fund Highlights
− The move higher in interest rates over the month and quarter was the key driver of fund returns with longer duration unhelpful.
− NZ government bonds performed better than swaps with smaller increases in yields contracting their spread relative to similar maturities of swap.
− We expect the funds will perform well over the medium term supported by carry and roll with a steep positive yield curve.