Other Funds
Outstanding Value Star Rating | Defensive KiwiSaver Profile
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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.
Nikko AM, established in 1994, manages funds for a wide range of clients including charities, corporations, local governments, and individual investors.
As a New Zealand-based investment manager, it benefits from the global expertise of its parent company, Nikko Asset Management, one of Asia’s largest asset managers. Led by Stuart Williams since 2023, Nikko AM actively manages New Zealand equity and fixed income assets, partnering with Goldman Sachs, NAM Europe, and ARK for global investments. Believing in active management, they seek to uncover market opportunities.
About the Fund Manager
Outstanding Value Star Rating - Defensive KiwiSaver Profile
GoalsGetter KiwiSavser Scheme | Nikko AM NZ Cash Fund
| One month | Three months | One year | Three years (p.a) | Five years (p.a) | |
|---|---|---|---|---|---|
| Fund performance1 | 0.32% | 1.00% | 5.15% | 5.14% | 3.40% |
| Appropriate Market Index (AMI)2 | 0.30% | 0.94% | 4.81% | 4.84% | 3.09% |
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 | 0.31% | 0.97% | 5.06% | 5.04% | 3.28% |
| Appropriate Market Index (AMI)2 | 0.30% | 0.94% | 4.81% | 4.84% | 3.09% |
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 |
|---|---|
| Inland Revenue Deposit 230625 Rcd | 4.27% |
| Rabobank Nederla 160326 Frn | 3.47% |
| Asb Bank Limited 181027 Frn | 3.23% |
| Mufg Bank Ltd Auckland Branch 241126 Frn | 2.93% |
| New Zealand Tax Trading Co 230625 Rcd | 2.88% |
| Transpower New Zealand Limited 260825 Pnote | 2.81% |
| Bank Of New Zealand 231126 Frn | 2.27% |
| Rabobank New Zealand Ltd 010526 Rcd | 2.26% |
| China Construction Bank Nz Ltd 090226 Frn | 2.15% |
| Rabobank New Zealand Ltd 200326 Rcd | 2.08% |
Commentary
As of 31 May 2025
Market Overview
Fund Commentary
The fund performed well in May returning 0.35% outperforming its benchmark the 90-day Bank Bill Index which returned 0.30%.
The RBNZ’s May MPS came in much in line with our expectations. For some time, we have been contemplating the end of the easing cycle and have positioned for this inevitable event by maintaining exposure to floaters and adding positions with maturities 6-months to 1-year where yields on offer were higher than 3-month bills. This is not to say there were no surprises for us in the MPS, rather we were less surprised than others in the market that may have been more aggressively positioned for a continuation of an easing bias and the potential of an OCR in the 2.5% to 2.75% range. Due to these somewhat divergent views across the market, short term interest rates steepened post the MPS with very short rates coming down and longer rates increasing. 3-Month bills came down 11bps to 3.32% as one would expect given a 25bps OCR cut, however rates for longer terms increased as markets reassessed both the timing of future cuts and the potential end point of the easing cycle. Consequently 6-month bills increased 3.5bps to 3.285%- and 1-year swap increased 17bps to 3.21%. Whilst the end of the easing cycle is now insight, we do not expect an imminent return to hiking. As such we are increasingly comfortable running a long duration position and are particularly disposed to adding positions with 6-months to 1-year terms where yields are higher than 90-day bills.