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The fund invests in a selection of NZ dollar denominated bonds issued by banks and companies, providing investors with a regular income. The fund may experience modest ups and downs in value.
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.
Fergus is the head of Bonds and Currency 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 see's as a good investment. Fergus also talks us through the investment process and outlines the main reasons why you should consider the Corporate Bond Fund for your next investment.
| One month | Three months | One year | Three years (p.a) | Five years (p.a) | |
|---|---|---|---|---|---|
| Fund performance1 | 0.41% | 0.75% | 7.10% | 4.44% | 2.37% |
| Appropriate Market Index (AMI)2 | 0.51% | 0.92% | 7.57% | 4.84% | 2.53% |
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 | 0.40% | 0.75% | 7.12% | 4.40% | 2.32% |
| Appropriate Market Index (AMI)2 | 0.51% | 0.92% | 7.57% | 4.84% | 2.53% |
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 |
|---|---|
| Housing NZ 1.534% 10/09/2035 | 3.91% |
| NZ Local Govt Funding Agency 150437 2.00 GB | 3.45% |
| Insurance Australia Group Ltd 150628 5.32 Cb | 3.17% |
| NZLGFA 3% 15/05/2035 | 3.06% |
| Westpac New Zealand Ltd 160932 6.19 Cb | 2.85% |
| Housing NZ 3.42% 18/10/2028 | 2.67% |
| Dunedin City Treasury 101033 4.966 Lb | 2.59% |
| Auckland Council 170639 5.745 Cb | 2.54% |
| Chorus Ltd 4.35% 06/12/2028 | 2.29% |
| Air New Zealand Ltd Sydney Branch 250529 6.50 Cb | 2.26% |
Commentary
As of 31 March 2025
Market Overview
Fund Commentary
The fund returned 0.47% for the month of March and 0.94% for the quarter. Performance for the quarter was close to benchmark the Bloomberg Credit Index which returned 0.92%.
The higher income accrual was the main positive attributor of return over the quarter, with the longer duration positioning unhelpful as rates moved modestly higher. Credit holdings continued to perform well with limited new issuance. We continue to maintain a longer duration with a steep yield curve and expect carry and roll will support returns over the medium term.