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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 | 1.05% | 0.36% | 7.09% | -1.11% | 0.41% |
| Appropriate Market Index (AMI)2 | 1.17% | 0.81% | 7.18% | -0.87% | 0.31% |
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 |
|---|---|
| Japan Government 111124 0.00 Gb | 6.47% |
| Japan Government 251124 0.00 Gb | 5.32% |
| United States Treasury 121224 0.00 Gb | 3.10% |
| Federal National Mortgage Association 151143 0.00 Tba | 3.09% |
| Japan Treasury Disc Bill 101224 0.00 Gb | 2.55% |
| Future Margins-USD | 1.65% |
| Government National Mortgage Association 2 151143 0.00 Tba | 1.48% |
| Japan Government Of 200634 1.10 Gb | 1.42% |
| Japan Government 010125 0.005 Gb | 1.40% |
| State Street | 1.34% |
Commentary
As of 30 November 2024
Market Overview
Fund Commentary
The portfolio outperformed its benchmark over November 2024, driven by our Cross Sector and Country strategies. No strategies detracted from performance over the month.
The outperformance of our Cross Sector strategy was driven by our overweight allocation to securitized fixed income, specifically commercial mortgage-backed securities (CMBS) and collateralized loan obligations (CLOs). Our overweight allocation to mortgage-backed securities also contributed as MBS spreads tightened over the month on strengthening technical factors, specifically strong demand from banks.
Outperformance of our Country strategy was driven by our cross-market underweight allocations to Japanese rates, particularly versus overweight Swedish rates. In November, Japanese rates underperformed following hawkish comments from BoJ Governor Ueda, as well as an upside surprise to Tokyo CPI. In contrast, Swedish rates outperformed as the Riksbank has begun its cutting cycle and continue to have a dovish assessment of their economy.