OneAnswer KiwiSaver Scheme New Zealand 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

2.14%

7.27%

3.82%

5.48%

5.45%

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)

  • Another good quarter for bonds was driven by low interest rates around the world as central banks took an increasingly dovish stance in a global environment of slowing growth, and rising geopolitical and trade tensions. In New Zealand, the Reserve Bank (RBNZ) set the Official Cash Rate at a record low of 1.5% in May, as growth slowed and inflation remained subdued. In June, the RBNZ held rates at 1.5% and showed no sign of shifting from its current dovish course.
  • Bonds tend to perform well in an environment of steady or declining interest rates, and against this backdrop the yield on the New Zealand 10-year government bond fell sharply, ending the quarter 0.27% lower at 1.58%. This meant positive gains from New Zealand bonds in total return terms.

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 New Zealand fixed interest assets. Investments may include:

• fixed interest assets in New Zealand dollars, or issued by New Zealand located or incorporated entities and hedged back to New Zealand dollars, and
• cash and cash equivalents.

This chart show 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.