OneAnswer KiwiSaver Scheme Cash Fund

Fund report as at 30 September 2018

 

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How has the fund performed?

What does the fund invest in?

What sort of fund is this?

How has the fund performed?

Performance as at 30 September 2018

3 months

1 year

3 years (pa)

5 years (pa)

Since launch

0.54%

2.12%

2.22%

2.67%

3.28%

Performance is after the annual fund charge, and before tax and membership fees (if applicable). For more information, see legal information and disclaimers.

What happened this quarter (3 months to 30 September 2018)

  • Performance continued to benefit from the more attractive interest rates that are currently available on bank term deposits, which make up about 40% of the fund.
  • Performance is also supported by the 20% allocation to Floating Rate Notes, which offer attractive yields without compromising on liquidity.
  • The Reserve Bank of New Zealand (RBNZ) left domestic interest rates on hold throughout the quarter. In fact, it has pushed out the timing of its next rate rise to late in 2020, while reiterating that its next move could be either up or down. However, it made it clear that it needs to see a pick-up in growth over the coming months for a future interest rate cut to be avoided.

Need more information?

  • Read our Market Review for more information on investment markets
  • Key read: why it’s wise not to try to time the market or chase returns

What does the fund invest in?

In the table below, the ‘target investment mix’ shows the mix of assets the fund generally intends to invest in.

Investment mix as at 30 September 2018

Asset class

Target
investment mix

Actual
investment mix

Cash and cash equivalents

100.0%

100.0%

 

What sort of fund is this?

Fund description

Invests mainly in cash and cash equivalents. Investments may include cash and cash equivalents issued by the New Zealand Government, New Zealand-registered banks, corporations and local authorities.

Target investment mix

The mix of assets that the fund generally intends to invest in.

See the fund's actual investment mix in the table above.

Fund objective

Aims to achieve a positive yearly return (after the fund charge and before tax) that over the long term is in line with the relevant market index.