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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.
Matt is a Fixed Income Manager at Nikko AM. In this video, he explains what an average day in his job looks like, what he's trying to achieve with this portfolio, and what he sees as a good investment. Matt also talks us through the investment process and outlines the main reasons why you should consider the Cash Fund for your next investment.
| One month | Three months | One year | Three years (p.a) | Five years (p.a) | |
|---|---|---|---|---|---|
| Fund performance1 | 0.40% | 1.23% | 5.86% | 4.79% | 3.23% |
| Appropriate Market Index (AMI)2 | 0.37% | 1.15% | 5.45% | 4.54% | 2.90% |
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.
| One month | Three months | One year | Three years (p.a) | Five years (p.a) | |
|---|---|---|---|---|---|
| Fund performance1 | 0.38% | 1.19% | 5.80% | 4.69% | 3.11% |
| Appropriate Market Index (AMI)2 | 0.37% | 1.15% | 5.45% | 4.54% | 2.90% |
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 |
|---|---|
| NZ Local Govt Funding Agency 150425 2.75 GB | 11.15% |
| Housing NZ Ltd 3.36% 12/06/2025 | 7.30% |
| Westpac 45 Day Depo | 3.90% |
| Rabobank Nederla 160326 Frn | 3.78% |
| Westpac New Zealand 060726 Frn | 3.63% |
| Asb Bank Limited 181027 Frn | 3.44% |
| Mufg Bank Ltd Auckland Branch 241126 Frn | 3.31% |
| New Zealand Tax Trading Co 030325 Rcd | 3.26% |
| Industrial And Commercial Bank Of China Nzd 260525 Frn | 3.01% |
| Transpower New Zealand Limited 260825 Pnote | 2.79% |
Commentary
As of 31 January 2025
Market Overview
Fund Commentary
The fund performed well in January returning 0.42% outperforming its benchmark the 90-day Bank Bill Index which returned 0.37%.
The two key data releases of the month were the QSBO and fourth quarter CPI, both of which supported the narrative that inflation is under control, economic activity weak and that the Reserve Bank should be comfortable to continue to ease. Our central view is these data are consistent with the Reserve Bank cutting the OCR by 50bps in February, after which a more cautious data dependent approach will be taken. Consistent with this move to a more data dependent approach our duration position ended the month relatively unchanged as we wait for further direction from the Reserve Bank in its February statement. In a similar vein over the month interest rates fell across terms out to 1 year, with these falls by and large reflecting the accrual of a likely 50bps easing in February followed by a more moderate continuation of easings over the year which may take the cash rate towards 3%. 90-day bills fell 24.5bps to 3.925%, 6-month bills fell 13.5bps to 3.735% and 1-year swap fell 7bps to 3.496%. These moves provided positive attributions to the fund’s long duration position and yield advantage.