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| One month | Three months | One year | Three years (p.a) | Five years (p.a) | |
|---|---|---|---|---|---|
| Fund performance1 | 0.31% | 0.99% | 5.28% | 4.98% | 3.27% |
| Appropriate Market Index (AMI)2 | 0.30% | 0.96% | 4.99% | 4.78% | 3.03% |
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 |
|---|---|
| Housing NZ Ltd 3.36% 12/06/2025 | 5.63% |
| Westpac New Zealand 060726 Frn | 5.11% |
| Westpac 45 Day Depo | 3.63% |
| Rabobank Nederla 160326 Frn | 3.61% |
| Asb Bank Limited 181027 Frn | 3.16% |
| Mufg Bank Ltd Auckland Branch 241126 Frn | 3.08% |
| New Zealand Tax Trading Co 260525 Rcd | 3.01% |
| Transpower New Zealand Limited 260825 Pnote | 2.93% |
| Industrial And Commercial Bank Of China Nzd 260525 Frn | 2.77% |
| China Construction Bank Nz Ltd 090226 Frn | 2.24% |
Commentary
As of 30 April 2025
Market Overview
Fund Commentary
The fund performed well in April returning 0.34% outperforming its benchmark the 90-day Bank Bill Index which returned 0.30%. Over the month interest rates fell as markets perceived Trump’s surprising aggressive reciprocal tariffs as negative for growth prospects. 3-months bills fell 17bps to 3.43%, 6-months bills fell 24bps to 3.25% and 1-year swap fell 31bps to 3.04%. As the fund has been running long duration these falls positively contributed to performance. We are now, once again, in a market where the rates curve for short term interest rates is fully inverted with call cash having a higher yield than bills of longer terms. This is the outcome of markets assuming the RBNZ will ease by more than previously expected with central expectations coalescing around a 2.75% end point for the current easing cycle. We agree that the travel of the OCR will continue to be downwards in the near term, however its ultimate endpoint is far from certain. Given this uncertainty we are remaining adaptable in our investment strategy whilst maintaining a long duration position.