OneAnswer KiwiSaver Scheme International Fixed Interest Fund
Quarterly fund report
How has the fund performed?
Performance as at 30 September 2025
Rate | |
|---|---|
3 months | 0.84% |
1 year | 1.33% |
3 years (p.a.) | 4.31% |
5 years (p.a.) | -1.26% |
10 years (p.a.) | 1.39% |
Since launch (p.a.) | 3.75% |
Performance is after the annual fund charge and before tax. KiwiSaver rates, fees and agreements.
What happened this quarter (three months to 30 September 2025)
Global bond markets delivered mixed results over the quarter, shaped by diverging economic conditions and central bank policy decisions.
US bonds ended the quarter higher, supported by signs of slowing economic momentum and a shift in monetary policy. After initial weakness driven by fiscal concerns surrounding the ‘One Big Beautiful Bill Act’ – which raised the debt ceiling and introduced expansive tax and spending measures – bonds rallied in September as labour market data softened, and the US Federal Reserve (the Fed) implemented its first rate cut of the year.
The Fed lowered the federal funds rate by 25 basis points to a range of 4.00–4.25%, citing elevated uncertainty and emerging slack in the labour market. The yield on the US 10-year Treasury fell by around 25 basis points over the quarter, ending at approximately 4.20%. When bond yields fall, their prices rise.
In contrast, European bond markets faced headwinds. UK bonds declined as inflation remained stubbornly high, with inflation there holding at 3.8% in August, driven by persistent food and services price pressures. As a result, the Bank of England (BoE) kept rates unchanged at 4.00%, warning that inflation risks remain elevated.
French bonds also came under pressure amid political instability, with the collapse of Prime Minister Bayrou’s government and widening fiscal deficits prompting a sell-off. This reflected investor concerns over governance and fiscal credibility. Meanwhile, the European Central Bank held rates steady at 2.00%, pausing its easing cycle as inflation hovered near target and growth remained subdued.
The fund invests in three distinct fixed interest strategies, managed by two leading external fund managers: Northern Trust Asset Management and PIMCO. This multi-manager approach enhances diversification and provides access to a broad spectrum of fixed income securities across global markets. Each strategy delivered positive returns over the period, contributing to the fund’s overall performance.
For more information on investment markets
What does the fund invest in?
The fund invests mainly in international fixed interest assets. Investments may include:
- Fixed interest assets issued by governments or international companies
- Cash and cash equivalents.
This chart shows the mix of assets that the fund generally intends to invest in – 100% fixed interest.
See the fund's actual investment mix on page 3 of the fund update.
Important information
ANZ New Zealand Investments Limited (‘ANZ Investments’) is the issuer and manager of the ANZ KiwiSaver Scheme, the OneAnswer KiwiSaver Scheme and the ANZ Default KiwiSaver Scheme (no longer a default scheme and closed to new members). For the scheme guides and product disclosure statements see KiwiSaver documents and forms or ask at any ANZ branch.
This material is for information purposes only. Please talk to us if you need financial advice about your situation and goals or about our products and services. See our Financial advice provider disclosure statement (PDF 39.9KB).
Past performance does not indicate future performance. The actual performance any given investor realises will depend on many things, is not guaranteed and may be negative as well as positive.