OneAnswer KiwiSaver Scheme International Fixed Interest Fund

Fund report as at 30 June 2019
 

How has the fund performed?

Performance as at 30 June 2019

3 months

1 year

3 years (pa)

5 years (pa)

Since launch

2.39%

6.26%

2.07%

4.27%

5.69%

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 June 2019)

  • Bonds tend to do well in an environment of low and declining interest rates, and there is every indication these conditions will be a defining factor for the global economy over the short to medium term. During the June quarter all major central banks affirmed their dovish stances.
  • Ongoing trade tensions between the US and China continued to influence bond markets during the quarter, particularly when the tariff spat began to spill over into the services sector over disputes about sharing technology. The quarter saw some lead indicators of manufacturing sector volumes begin to decline, which hardened the dovish sentiment among central banks. During the quarter, the US Federal Reserve indicated its next move would be an interest rate cut. 
  • In Europe, uncertainty around the economy continued to grow as Brexit remains a seemingly unsolvable riddle, and the European Central Bank began making noises about cutting rates and recommencing its quantitative easing programme. European bond markets rose to unprecedented levels, which pushed some government bond yields further into negative territory. In June, the total amount of negative-yielding debt surpassed $13 trillion.

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?

The fund invests mainly in international fixed interest assets. Investments may include:

  • fixed interest assets issued by governments or international companies, and
  • cash and cash equivalents.

This chart shows the mix of assets that the fund generally intends to invest in.

See the fund's actual investment mix on page 3 of the Fund update.