Single Sector Fund
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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 | Very 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 | 0.64% | -1.72% | -6.01% | 1.92% | 3.26% |
| Appropriate Market Index (AMI)2 | 0.48% | -1.70% | -5.67% | 1.21% | 2.66% |
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 Govt Inflation Index Bond 20/09/25 | 10.41% |
| Kommunalbanken AS 1.25% 02/07/2030 | 5.90% |
| NZ Government Bond 2% 15/05/2032 | 3.72% |
| Westpac NZ 1.439% 02/24/26 | 3.48% |
| Kiwibank Ltd 2.155% 20/09/2024 | 2.86% |
| Housing NZ 3.42% 18/10/2028 | 2.73% |
| ASB Bank Ltd 040526 1.646 Cb | 2.60% |
| Housing NZ 2.183% 24/04/2030 | 2.58% |
| NZ Local Govt Funding Agency 3.50% 14/04/2033 | 2.30% |
| Bank Of New Zealand Cash at Call | 2.22% |
Find out about all the Nikko AM funds you can invest in using GoalsGetter.
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Commentary
As of 31 December 2021
Market Highlights
The fund’s modest long duration position was a positive over the past month as longer maturity bonds performed better than shorter maturities. However, over the quarter the longer than benchmark position was a drag on performance as rates lifted strongly over October. We let this long position reduce into year-end to reduce risk as often the first quarter of the New Year is quite volatile in terms of interest rates moves. Fund performance was in line with the Bloomberg NZ Bond Composite benchmark. Yield curve positioning, credit and inflation linked bonds all adding to performance relative to benchmark.