Single Sector Fund
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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 | 0.39% | -1.67% | -4.51% | 2.29% | 3.58% |
| Appropriate Market Index (AMI)2 | 0.36% | -1.28% | -3.44% | 2.19% | 3.40% |
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 | 0.37% | -1.68% | -4.60% | 2.45% | |
| Appropriate Market Index (AMI)2 | 0.36% | -1.28% | -3.44% | 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 |
|---|---|
| Westpac NZ 1.439% 02/24/26 | 4.05% |
| Housing NZ 3.42% 18/10/2028 | 3.68% |
| Kiwibank Ltd 2.155% 20/09/2024 | 2.95% |
| ASB Bank Ltd 040526 1.646 Cb | 2.93% |
| Westpac NZ 2.22% 29/07/24 | 2.81% |
| ANZ NZ 3.03% 20/03/2024 | 2.27% |
| ASB Bank Ltd 1.83% 08/19/2024 | 2.21% |
| Insurance Australia Group Ltd 150643 5.15 CB | 2.17% |
| New Zealand Inland Revenue 060522 Rcd | 2.15% |
| China Construction Bank New Zealand Ltd 250923 0.954 Cb | 2.06% |
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Commentary
As of 31 December 2021
Market Highlights
The fund’s modest long duration position was a drag on returns over the quarter. This long position reduced into year-end to reduce risk as often the first quarter of the New Year is quite volatile in terms of interest rates moves. Yield curve positioning, including a higher fund yield was helpful. Large increases in interest rates over October resulted in the negative returns for the fund over the quarter returns – although it is worth noting the Bloomberg NZ Bond Credit benchmark has modest interest rate risk with a duration of 3.11 years. This duration is significantly less than many other fixed income indices