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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 | 0.65% | 1.05% | 6.48% | 2.10% | 0.14% |
| Appropriate Market Index (AMI)2 | 0.89% | 1.61% | 6.85% | 2.25% | -0.01% |
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 |
|---|---|
| United States Treasury 030725 0.00 Gb | 12.72% |
| France Republic Of Government 120625 0.00 Gb | 4.89% |
| Japan Treasury Disc Bill 190525 0.00 Gb | 3.49% |
| United States Treasury 150525 0.00 Gb | 3.32% |
| Treasury Bill 080525 0.00 Gb | 2.73% |
| French Discount T-Bill 090725 0.00 Gb | 2.64% |
| French Discount T-Bill 210525 0.00 Gb | 2.23% |
| Treasury Bill 100725 0.00 Gb | 1.99% |
| Japan 5 Year Issue 201229 1.10 Gb | 1.89% |
| Federal National Mortgage Association 150543 0.0 Tba | 1.72% |
Commentary
As of 30 April 2025
Market Overview
Fund Commentary
The portfolio underperformed the benchmark in April 2025. This was driven by Government Swap Selection and Cross-Sector strategies, whilst the Duration strategy contributed to performance.
The Government Swap Selection strategy underperformed, driven by the Japan flattener position as front-end rates rallied in response to the tariff news. The long US swap spreads position also underperformed on growing concerns over reduced foreign investor appetite for US assets.
The Cross Sector strategy also detracted from performance, driven by overweight positioning in securitized assets, particularly CMBS and CLOs. Spreads widened in April in a risk-off move, as tariff-related concerns drove significant volatility.
The outperformance of the Duration strategy was driven by the tactical month end auction strategy. The directional underweight Japanese rates position also contributed to performance, as we initiated the position after rates rallied at the start of April with the global trend. JGBs subsequently sold off, as robust data and inflationary pressures argue for more hikes from the BoJ.