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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 | 0.43% | 1.32% | 5.98% | 4.68% | 3.17% |
| Appropriate Market Index (AMI)2 | 0.37% | 1.21% | 5.55% | 4.43% | 2.85% |
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 | 0.42% | 1.30% | 5.92% | 4.58% | 3.06% |
| Appropriate Market Index (AMI)2 | 0.37% | 1.21% | 5.55% | 4.43% | 2.85% |
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 | 11.50% |
| Housing NZ Ltd 3.36% 12/06/2025 | 6.32% |
| Westpac 45 Day Depo | 4.02% |
| Rabobank Nederla 160326 Frn | 3.90% |
| Westpac New Zealand 060726 Frn | 3.75% |
| Asb Bank Limited 181027 Frn | 3.59% |
| Mufg Bank Ltd Auckland Branch 241126 Frn | 3.42% |
| New Zealand Tax Trading Co 030325 Rcd | 3.37% |
| Industrial And Commercial Bank Of China Nzd 260525 Frn | 3.11% |
| Transpower New Zealand Limited 260825 Pnote | 2.88% |
Commentary
As of 31 December 2024
Fund Commentary
The fund performed well in December quarter returning 1.38% outperforming its benchmark the 90-day Bank Bill Index which returned 1.21%.
In sympathy with the weak GDP outturn along with annual CPI at 2.2% now being close to the RB policy target midpoint, short term interest rates fell across the curve. 90-day bills fell 70.5bps to 4.165%, 6-month bills fell 74bps to 3.87% and 1-year swap fell 51bps to 3.57% as such the fund’s long duration position continues bear fruit. This aside, as we move through 2025 it will be of increasing importance to focus on the end point of the easing cycle along with the shape of the short-term interest rate curve. We expect to see the return of an upward sloping interest rate curve by the second half of the year. In the interim period duration decisions will need to be carefully weighed against market pricing for the endpoint of the easing cycle as its possible markets could price a lower end point than ultimately delivered.