Single Sector Fund

Nikko AM Global Bond Fund

Join KiwiSaver Invest Now

About the fund

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)

1
2
3
4 Medium to High
5
6
7

Target Asset Allocation

Income 100.00%

Commentary

As of 31 May 2025

Market Overview

  • May was a strong month for most financial assets, with credit spreads tightening, although they remained wider than the tight levels observed in February.
  • US Treasuries faced challenges due to renewed concerns about the fiscal trajectory with the 30-year yield hitting an intra-day high of 5.15% amid a broader global selloff for long-end bonds.
  • Emerging Markets spreads tightened due to positive returns driven by lower oil prices, a weaker US Dollar, and expectations of interest rate easing.

Fund Commentary 

The portfolio outperformed the benchmark in May 2025. This was driven by our Duration, Government Swaps and Cross Sector strategies.

Our Duration strategy outperformed, driven by our underweight position in 5-year Japanese rates. In Japan, the BoJ held rates steady in May, though signalled that further rate hikes may be required in response to rising inflation. Additionally, our tactical month end auction strategy contributed to returns.

Our Government Swaps strategy also contributed, driven by our European steepener positions.

Finally, our outperformance of our Cross Sector strategy was driven by our overweight bias to securitized assets such as CMBS and CLOs, as spread sectors outperformed off the back of positive trade headlines and a more optimistic growth picture relative to April.

 

Performance

Nikko AM Investment Scheme
Open Close

Performance

at 31 May 2025
One month Three months One year Three years (p.a) Five years (p.a)
Fund performance1 -0.34% -0.17% 5.56% 2.01% -0.15%
Appropriate Market Index (AMI)2 -0.42% 0.00% 5.48% 2.16% -0.16%
  1. Returns are before tax and after the deduction of fees and expenses and including tax credits (if any).
  2. AMI: Bloomberg Barclays Global Aggregate Index hedged into NZD.

5 year cumulative performance $10,000 invested

Top 10 Holdings

Security Name Percentage
United States Treasury 030725 0.00 Gb 11.10%
France Republic Of Government 120625 0.00 Gb 4.81%
Japan Government Of 120825 0.00 Gb 3.28%
United States Treasury 210825 0.00 Gb 2.94%
Japan Government Of 280725 0.00 Gb 2.70%
French Discount T-Bill 090725 0.00 Gb 2.59%
Japan 5 Year Issue 201229 1.10 Gb 1.83%
Federal National Mortgage Association 150643 0.0 Tba 1.66%
Government National Mortgage Association 150653 Tba 1.18%
Fnma 30Yr Conventional 150635 6.00 Tba 1.03%
Get the GoalsGetter Guide to Managed Funds

Get the GoalsGetter Guide to Managed Funds

If you've got a sum of money burning a hole in your pocket, it's time to put that money to work to meet your financial goals. But where to start? In this guide, we cover the fundamentals of investing in managed funds.