Single Sector Fund
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This fund aims for more modest investment returns which grow steadily over time, keeping ups and downs to a minimum. The fund does this by investing mostly in bonds and cash, but also has a moderate exposure to shares.
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.
| One month | Three months | One year | Three years (p.a) | Five years (p.a) | |
|---|---|---|---|---|---|
| Fund performance1 | -0.43% | -4.16% | -1.95% | 3.38% | |
| Appropriate Market Index (AMI)2 | -0.43% | -3.60% | -1.29% | 3.64% |
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.
| One month | Three months | One year | Three years (p.a) | Five years (p.a) | |
|---|---|---|---|---|---|
| Fund performance1 | -0.43% | -4.13% | -1.94% | 3.38% | |
| Appropriate Market Index (AMI)2 | -0.43% | -3.60% | -1.29% | 3.64% |
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 |
|---|---|
| JPM Multi Manager Alternatives X Acc NZD Hedged | 4.89% |
| NZ Govt Inflation Index Bond 20/09/25 | 2.59% |
| Japan Government 110422 0.0 Gb | 2.03% |
| Westpac NZ 1.439% 02/24/26 | 1.36% |
| Kommunalbanken AS 1.25% 02/07/2030 | 1.36% |
| Westpac New Zealand Ltd 160227 3.696 Cb | 1.20% |
| Housing NZ 3.42% 18/10/2028 | 1.15% |
| Kiwibank Ltd 2.155% 20/09/2024 | 1.05% |
| Fisher & Paykel Healthcare | 1.01% |
| ASB Bank Ltd 040526 1.646 Cb | 1.00% |
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Commentary
As of 31 March 2022
Market Highlights
The strong returns from equities, and a positive contribution from the multi-strategy hedge fund were insufficient to counter the losses from the bond sectors, leading to the fund falling in value by nearly half a percent over the month and quarter. Day-to-day volatility remains elevated across all sectors, serves as a reminder that good diversification is an important aspect of portfolio construction. As we finalise this year’s strategic asset allocation review we note that the higher interest rate environment will ultimately lead to higher expected returns over time, albeit that the journey will continue to provide significant jolts both upwards and downwards especially in equity markets. We remain firmly of the view that equities will outperform bonds over the longer term and that bonds will outperform cash, but the role of equities will remain limited in the fund due to its objective of being deliberately biased towards the generally less volatile and more predictable outcomes from bonds and cash.