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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 | -0.17% | 0.37% | 3.05% | 2.34% | -0.63% |
| Appropriate Market Index (AMI)2 | -0.20% | 0.23% | 3.22% | 2.05% | -0.34% |
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 |
|---|---|
| Japan Treasury Disc Bill 290925 0.00 Gb | 11.19% |
| French Discount T-Bill 030925 0.00 Gb | 4.79% |
| Japan Government Of 120825 0.00 Gb | 3.10% |
| Federal National Mortgage Association 150843 0.00 Tba | 2.88% |
| French Discount T Bill 151025 0.00 Gb | 2.56% |
| Fnma 30Yr Conventional Loan Tba 150835 5 | 2.33% |
| Fnma 150836 5.0 Tba | 2.12% |
| Fnma 30 Yr Conventional 150846 0.0 Tba | 2.04% |
| Japan 5 Year Issue 201229 1.10 Gb | 1.71% |
| Gnma Ii 30Yr Single Family 010839 0.00 Tba | 1.27% |
Commentary
As of 31 July 2025
The fund outperformed the benchmark in July 2025. This was driven by the fund’s Country and Cross Sector strategies.
The Country strategy outperformed over the month, driven by the fund’s cross-market overweight allocation to New Zealand rates versus underweight Japanese rates. New Zealand rates performed well over the month following a dovish RBNZ meeting indicating possible easing in the second half of the year. Additionally, JGBs sold off following concerns over additional fiscal spending, benefitting our position.
The Cross Sector strategy also contributed to returns over the month, driven by the fund’s overweight allocation to Commercial Mortgage-Backed Securities and CLOs. Spreads tightened over the month following successful US trade negotiations in July reducing policy uncertainty and supporting risk assets.