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This fund invests in a selection of NZ dollar denominated cash investments and short-term bonds that aim to protect value while at the same time providing a higher return than bank deposits.
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.
Amova Asset Management New Zealand Limited, established in 1994, manages funds for a wide range of clients including charities, corporations, local governments, and individual investors.
As a New Zealand-based investment manager, it benefits from the global expertise of its parent company, Amova Asset Management, one of Asia’s largest asset managers. Led by Stuart Williams since 2023, Amova NZ actively manages New Zealand equity and fixed income assets, partnering with Goldman Sachs, NAM Europe, and ARK for global investments. Believing in active management, they seek to uncover market opportunities.
| One month | Three months | One year | Three years (p.a) | Five years (p.a) | |
|---|---|---|---|---|---|
| Fund performance1 | 0.26% | 0.78% | 3.86% | 5.19% | 3.68% |
| Appropriate Market Index (AMI)2 | 0.21% | 0.68% | 3.48% | 4.82% | 3.43% |
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 |
|---|---|
| Rabobank NederlandNZ 190628 FRN | 4.69% |
| Kiwibank Ltd 130628 FRN | 3.75% |
| Bank Of New Zealand Cash at Call | 3.20% |
| Kiwibank Ltd 150328 FRN | 2.96% |
| ASB Bank Limited 181027 FRN | 2.71% |
| Westpac NZ 1.439% 02/24/26 | 2.52% |
| MUFG Bank Ltd Auckland Branch 241126 FRN | 2.44% |
| ASB Bank Ltd 040526 1.646 Cb | 2.36% |
| Toyota Finance New Zealand Ltd 110926 Frn | 2.22% |
| KiwiBank 2.635% 05/10/2026 | 2.17% |
Commentary
As of 31 December 2025
Market Overview
− Economic momentum strengthens into year-end – Q3 GDP rose 1.1% q/q, beating forecasts, with broad-based gains in exports and investment; consumer confidence hit 101.5 and card spending in core retail industries climbed 2.5% yearon- year.
− Markets price early hikes as mortgage dynamics shift – Neutral RBNZ stance and improving data drove expectations for OCR hikes by mid-2026, prompting higher retail rates and a surge in mortgage fixing activity.
− RBNZ pushes back on aggressive pricing – Governor Breman reaffirmed OCR likely to “remain at 2.25% for some time”; swap rates remain elevated despite partial retracement, and we expect policy to hold steady through 2026.
Fund Highlights
− The fund holds a longer than benchmark duration position reflecting our view that the RBNZ is likely to maintain stimulatory monetary policy settings for an extended time.
− The fund has a yield advantage of 75bps over its benchmark.
− Credit quality remains high and is expected to perform well as the economy recovers over the coming year.