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The fund invests in a selection of bonds and other fixed income instruments issued by companies and governments from around the world, covering a wide range of regions and sectors. This fund provides exposure to fixed income products outside of NZ and currency exposure is hedged to remove the impact of changes in value of the NZ dollar.
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 | 0.88% | 0.66% | 5.93% | 0.40% | 0.08% |
| Appropriate Market Index (AMI)2 | 1.18% | 0.66% | 5.61% | 0.43% | -0.12% |
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 |
|---|---|
| French Discount T-Bill 190325 0.00 Gb | 5.37% |
| Japan Treasury Disc Bill 190525 0.00 Gb | 3.98% |
| Federal National Mortgage Association 150344 0.00 Tba | 3.90% |
| French Discount T-Bill 160425 0.00 Gb | 3.78% |
| Treasury Bill 080525 0.00 Gb | 3.27% |
| French Discount T-Bill 210525 0.00 Gb | 2.45% |
| France Republic Of Government 090425 0.00 Gb | 2.28% |
| United States Treasury 150525 0.00 Gb | 1.92% |
| Federal National Mortgage Association 150346 0.00 Tba | 1.92% |
| Future Margins-USD | 1.72% |
Commentary
As of 28 February 2025
Market Overview
Fund Commentary
The portfolio performed in line with the benchmark in February 2025.
Country strategy, was a detractor from performance while the Cross Sector strategy contributed positively to returns.
The underperformance of the Country strategy was driven primarily by an overweight allocation to Norwegian rates. Higher-than-expected January inflation in Norway, combined with strength in home prices and retail sales, led investors to rethink the Norges Bank's policy path for 2025.
The Cross Sector strategy contributed excess returns driven by the credit hedge, whereby sector exposures are balanced with an overweight allocation to US treasuries. Treasuries rallied over February, as weak economic data led investors to anticipate further interest rate cuts by the Fed, as growth concerns will likely be prioritized over inflation risks.