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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% | 1.38% | 6.04% | 4.55% | 3.12% |
| Appropriate Market Index (AMI)2 | 0.40% | 1.29% | 5.66% | 4.33% | 2.79% |
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 | 0.39% | 1.37% | 6.00% | 4.46% | 3.01% |
| Appropriate Market Index (AMI)2 | 0.40% | 1.29% | 5.66% | 4.33% | 2.79% |
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 | 7.45% |
| Rabobank Nederla 160326 Frn | 4.04% |
| Westpac New Zealand 060726 Frn | 3.88% |
| Asb Bank Limited 181027 Frn | 3.67% |
| Mufg Bank Ltd Auckland Branch 241126 Frn | 3.54% |
| New Zealand Tax Trading Co 151124 Rcd | 3.53% |
| New Zealand Tax Trading Co 041124 Rcd | 3.49% |
| Industrial And Commercial Bank Of China Nzd 260525 Frn | 3.22% |
| Housing NZ Ltd 3.36% 12/06/2025 | 3.16% |
| Westpac 45 Day Depo | 2.93% |
Commentary
As of 30 November 2024
Market Overview
Fund Commentary
The fund performed well in November returning 0.44% outperforming its benchmark the 90-day Bank Bill Index which returned 0.40%. As widely expected, the RBNZ cut the OCR by 50bps and delivered a statement which in aggregate had few surprises to disrupt market pricing. With no major unexpected movements in short term rates the fund’s positive performance was primarily attributable to its yield advantage. With the RBNZ’s next meeting not for three months and tier one data releases unlikely to cause an about face in the Reserve Bank’s easings bias we expect yield advantage and curve roll will be primary sources of return over the coming months.