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The fund invests in a selection of bonds and other fixed income instruments issued by companies and governments from around the world, covering a wide range of regions and sectors. This fund provides exposure to fixed income products outside of NZ and currency exposure is hedged to remove the impact of changes in value of the NZ dollar.
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 | 0.12 | -0.39 | 0.76 | 3.72 | -0.41 |
| Appropriate Market Index (AMI)2 | 0.02 | -0.80 | 0.35 | 3.31 | -0.18 |
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 |
|---|---|
| French Discount T-Bill 300926 0.00 Gb | 6.07% |
| Federal National Mortgage Association 150943 0.00 Tba | 3.43% |
| French Discount T Bill 141026 0.00 Gb | 2.86% |
| Treasury Bill 051126 0.00 Gb | 2.39% |
| Fhs 477 Gy 250931 Abs | 1.98% |
| USD BNP Paribas A/C | 1.84% |
| Japan 5 Year Issue 201229 1.10 Gb | 1.37% |
| China Government Bond 150535 1.65 Gb | 1.33% |
| Government National Mortgage Assoc 150954 0.0 Tba | 1.04% |
| Federal National Mortgage Associtation 150950 0.00 Tba | 1.03% |
Commentary
As of 31 August 2026
The portfolio outperformed the benchmark in August, driven primarily by the Country and Govt Swap strategies. Similarly, the Sector Allocation, Issuer Selection, and Duration Strategies also added positively to relative returns over the month.
Country strategy: The Macro Relative Value (RV) positions were the largest contributor to performance, led by two highconviction cross-market views: Overweight New Zealand and UK on a cross-market basis.
Govt Swap strategy: The Government Swap strategy also contributed to the relative return, driven by the US 10Y and 5Y swap spread as spreads movement were favourable to the portfolio.
Sector Allocation strategy: Within the Sector Allocation strategy, exposure to spread assets generally added positively supported by carry and resilient risk appetite. Top contributors to relative returns were from exposure to securitized credits; with the likes of both high-quality CLOs and CMBS.
Issuer Selection strategy: Within Issuer Selection, the corporate credit selection was positively driven by basis trades alongside the fund’s curve positioning which proved accretive.
Duration strategies: Within directional rates, while the fund’s TAMES strategy which buys US Treasuries intra-month, and outright overweight in portions of the European curves detracted, it was more than offset by select contributors which includes JPY payer and curve flattener.