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The fund invests in a selection of NZ dollar denominated bonds issued by 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.
| One month | Three months | One year | Three years (p.a) | Five years (p.a) | |
|---|---|---|---|---|---|
| Fund performance1 | 0.77% | 1.32% | 7.34% | 5.37% | 1.61% |
| Appropriate Market Index (AMI)2 | 0.76% | 1.35% | 7.76% | 5.67% | 2.12% |
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 |
|---|---|
| Housing NZ 1.534% 10/09/2035 | 3.79% |
| NZ Local Govt Funding Agency 150437 2.00 GB | 3.26% |
| Insurance Australia Group Ltd 150628 5.32 Cb | 3.02% |
| NZLGFA 3% 15/05/2035 | 2.89% |
| Rabo 5.31% 05/04/2029 | 2.81% |
| Westpac New Zealand Ltd 160932 6.19 Cb | 2.70% |
| Christchurch City Hldgs 210532 4.82 Gb | 2.57% |
| Housing NZ 3.42% 18/10/2028 | 2.53% |
| Dunedin City Treasury 101033 4.966 Lb | 2.44% |
| Auckland Council 170639 5.745 Cb | 2.36% |
Commentary
As of 30 June 2025
Market Overview
Fund Commentary
The fund had a positive return of 0.83% for the month of June and 1.51% for the quarter which was ahead of its benchmark the Bloomberg Credit Index which returned 0.76% for June and 1.35% over the quarter.
The higher fund yield was helpful over the quarter and the longer duration position also added value over the quarter with interest rates finishing lower in yield. Month-to-month returns bounced around due to elevated uncertainty and resultant moves up and down in interest rates. NZ credit margins quickly recovered (post widening in April) and should remain well supported with limited issuance. We continue to maintain a longer duration with a steep yield curve and expect carry and roll will support returns over the medium term.