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OneAnswer KiwiSaver Scheme New Zealand Fixed Interest Fund

Fund report as at 30 September 2020

How has the fund performed?

Performance as at 30 September 2020


Funds
3 months 1 year 3 years (pa) 5 years (pa) Since launch
2.69% 5.73% 6.36% 5.12% 5.61%

 

Performance is after the annual fund charge, and before tax and membership fees (if applicable). For more information, see legal information and disclaimers.

What happened this quarter (3 months to 30 September 2020)

  • It was a relatively good quarter for New Zealand bond investors as interest rates continued to decline amid ongoing accommodative policy and rhetoric from the Reserve Bank of New Zealand. 
  • In August, the central bank increased its bond-buying programme to $100 billion and noted that a negative OCR is a policy tool it could implement – commentary that saw interest rates decline sharply. The 10-year government bond yield finished the quarter down 43 basis points. 
  • Against this backdrop of what was a relatively quiet period for bond markets, the New Zealand 10-year government bond yield ended the quarter at 0.93%, down 15 basis points. 
  • In economic data, New Zealand recorded its first recession in more than a decade when Statistics New Zealand said growth fell 12.2% for the three months to June, this came after a 1.6% decline in the first quarter of the year. In other economic data, retail sales figures fell for the second straight quarter – the first time since the 2009 financial crisis. On a more positive note, business confidence ticked higher over the quarter. 
  • Given the economic uncertainty and fallout from the coronavirus, we expect the central bank to hold its heavily accommodative stance, which will likely see interest rates remain at or below current levels, at least in the short to medium term.   
  • Finally, the ongoing demand for government bonds saw them outperform corporate bonds over the quarter.  

Need more information?

Read our Market Review for more information on investment markets.

What does the fund invest in?

The fund invests mainly in New Zealand fixed interest assets. Investments may include:

  • fixed interest assets in New Zealand dollars, or issued by New Zealand located or incorporated entities and hedged back to New Zealand dollars, and
  • cash and cash equivalents.

This chart show the mix of assets that the fund generally intends to invest in.


See the fund's actual investment mix on page 3 of the Fund update.

See the fund's full portfolio holdings.

ANZ New Zealand Investments Limited ('ANZ Investments') is the issuer and manager of the OneAnswer KiwiSaver Scheme. Important information is available under terms & conditions. Download the guide and product disclosure statement.