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The fund invests in a broad selection of NZ dollar denominated bonds issued by Governments, Government entities, banks and companies, providing investors with a regular income. The fund may experience modest ups and downs in value.
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.
Ian is a Fixed Income Manager here at Amova. In this video, Ian talks about the Amova NZ Bond Fund and describes what this fund aims to achieve in terms of returns. Ian also explains what sets this fund apart from the rest and why you should consider the NZ Bond Fund for your next investment.
| One month | Three months | One year | Three years (p.a) | Five years (p.a) | |
|---|---|---|---|---|---|
| Fund performance1 | -0.21% | -0.49% | 4.82% | 6.06% | 0.80% |
| Appropriate Market Index (AMI)2 | -0.13% | -0.15% | 5.04% | 5.64% | 0.64% |
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 |
|---|---|
| NZ Government 150541 1.75 GB | 7.68% |
| NZ Government 2.75% 15/04/2037 | 7.60% |
| NZ Government Bond 2% 15/05/2032 | 6.06% |
| NZ Government 150534 4.25 Gb | 5.63% |
| Westpac New Zealand Ltd 240929 4.34 Cb | 3.72% |
| Kiwibank Ltd 111229 4.746 Cb | 3.68% |
| New Zealand Government 150536 4.25 Gb | 3.67% |
| NZ Government 150535 4.50 Gb | 3.36% |
| NZ Local Government Funding Agency 4.5% 15/05/2030 | 3.29% |
| Bank Of New Zealand 191129 4.889 Cb | 2.84% |
Commentary
As of 31 December 2025
Market Overview
− NZ interest rates moved higher over December and the quarter which weighed on bond returns.
− The NZ yield curve remains steeply positive shaped with higher yields through investing longer in maturity.
− Credit margins appear to have stabilised after a strong performance, and supply/demand dynamics remain supportive.
Fund Highlights
− The move higher in interest rates over the month and quarter was the key driver of fund returns with longer duration unhelpful.
− NZ government bonds performed better than swaps with smaller increases in yields contracting their spread relative to similar maturities of swap.
− We expect the funds will perform well over the medium term supported by carry and roll with a steep positive yield curve.