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This fund invests in a selection of NZ dollar denominated cash investments and short-term bonds that aim to protect value while at the same time providing a higher return than bank deposits.
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.
Matt is a Fixed Income Manager at Nikko AM. In this video, he explains what an average day in his job looks like, what he's trying to achieve with this portfolio, and what he sees as a good investment. Matt also talks us through the investment process and outlines the main reasons why you should consider the Cash Fund for your next investment.
| One month | Three months | One year | Three years (p.a) | Five years (p.a) | |
|---|---|---|---|---|---|
| Fund performance1 | 0.48% | 1.46% | 6.15% | 4.44% | 3.06% |
| Appropriate Market Index (AMI)2 | 0.43% | 1.36% | 5.73% | 4.21% | 2.72% |
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.
| One month | Three months | One year | Three years (p.a) | Five years (p.a) | |
|---|---|---|---|---|---|
| Fund performance1 | 0.48% | 1.46% | 6.13% | 4.35% | 2.95% |
| Appropriate Market Index (AMI)2 | 0.43% | 1.36% | 5.73% | 4.21% | 2.72% |
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 Local Govt Funding Agency 150425 2.75 GB | 7.45% |
| Rabobank Nederla 160326 Frn | 4.04% |
| Westpac New Zealand 060726 Frn | 3.88% |
| Asb Bank Limited 181027 Frn | 3.67% |
| Mufg Bank Ltd Auckland Branch 241126 Frn | 3.54% |
| New Zealand Tax Trading Co 151124 Rcd | 3.53% |
| New Zealand Tax Trading Co 041124 Rcd | 3.49% |
| Industrial And Commercial Bank Of China Nzd 260525 Frn | 3.22% |
| Housing NZ Ltd 3.36% 12/06/2025 | 3.16% |
| Westpac 45 Day Depo | 2.93% |
Commentary
As of 31 October 2024
Market Overview
Fund Commentary
The fund performed well in October returning 0.50% outperforming its benchmark the 90-day Bank Bill Index which returned 0.43%.
In response to the RB accelerating its easing program by cutting the OCR by 50bps, short term interest rates fell as markets extrapolated the RBs faster easing to future meetings. 90-day bills fell 35pts to 4.52%, 6-month bills fell 35.5pts to 4.255% and 1-year swap fell 18pts to 3.90%. With rates falling across the curve and markets increasing bets that a 75-point cut could occur in November the funds long duration position positively contributed to performance. This aside we continue to take a cautious stance regarding the pace of future OCR cuts. We are holding floating rate notes and positions with maturities less than 2-months to mitigate the risk of the RB disappointing the market. The RBs November meeting will provide them an opportunity to affirm or repudiate markets expectations for ongoing rapid rate cuts.