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OneAnswer KiwiSaver Scheme New Zealand Fixed Interest Fund

Fund report as at 31 December 2020

How has the fund performed?

Performance as at 31 December 2020

3 months 1 year 3 years (pa) 5 years (pa) Since launch
-1.91% 6.79% 5.17% 4.83% 5.34%


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 31 December 2020)

  • It was a challenging quarter for domestic bondholders as an improving economy and ongoing monetary stimulus saw government bond yields rise sharply – an environment that tends to see bonds underperform. 
  • The quarter was highlighted by a string of better-than-expected economic data. GDP figures for the third quarter showed the economy had a strong recovery out of the recession, with growth rising 14% quarter-on-quarter. Meanwhile, the unemployment rate rose to 5.3%, which was marginally better than most forecasts, and retail sales data showed a mighty 28% rise from the previous quarter, comfortably beating expectations.  
  • In central bank news, the Reserve Bank of New Zealand held the Official Cash Rate at 0.25% at its November meeting, but did announce its Funding for Lending Programme, where it will provide banks with cheap funding in an attempt to spur economic growth through cheap lending to businesses and individuals. 
  • Despite the better-than-expected economic data, the central bank is unlikely to change its heavily accommodative stance as the economic outlook remains uncertain. 
  • Finally, the weakness in government bond prices saw corporate bonds outperform government bonds. 

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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.