Single Sector Fund
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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% | 1.49% | 6.00% | 3.18% | 2.57% |
Appropriate Market Index (AMI)2 | 0.45% | 1.41% | 5.65% | 3.01% | 2.19% |
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 | 0.49% | 1.49% | 5.94% | 3.07% | 2.50% |
Appropriate Market Index (AMI)2 | 0.45% | 1.41% | 5.65% | 3.01% | 2.19% |
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 |
---|---|
Rabobank Nederla 160326 Frn | 5.71% |
Westpac New Zealand 060726 Frn | 5.49% |
Mufg Bank Ltd Auckland Branch 241126 Frn | 4.54% |
Industrial And Commercial Bank Of China Nzd 260525 Frn | 3.99% |
Bank Of New Zealand 231126 Frn | 3.22% |
ASB Bank Ltd 200924 Rcd | 2.79% |
Rabobank Nederla 160625 Frn | 2.70% |
China Construction Bank Nz Ltd 090226 Frn | 2.65% |
Westpac NZ 2.22% 29/07/24 | 2.64% |
Inland Revenue Deposit 210624 Rcd | 2.28% |
Commentary
As of 29 February 2024
Market Highlights
The fund performed well in February returning 0.50% outperforming its benchmark the 90-day Bank Bill Index which returned 0.45%. Short term rates traded across a reasonably large range during February, most notably taking a step upwards when ANZ’s economic team changed their OCR call to a resumption of hikes and a 6% terminal level, on the 9th of February. On the back of this call 90-day bills jumped 6bps, whilst 1-year swap rates jumped a remarkable 19bps and then remained near these elevated levels for most of the month prior to the MPS date. This shift change to pricing hikes was highly inconsistent with our internal view that no further tightening would be required, as such we took the opportunity to add some duration prior to the Reserve Bank’s decision, extending the fund’s position by circa 10 days. This proved to be a positive action, with the Reserve Bank’s no change decision and dovish tilt resulting in 90-day bills dropping 6bps and 1-year swap 18bps from their pre decision level.