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OneAnswer KiwiSaver Scheme New Zealand Fixed Interest Fund

Fund report as at 31 March 2020

How has the fund performed?

Performance as at 31 March 2020


Funds
3 months 1 year 3 years (pa) 5 years (pa) Since launch
3.86% 8.41% 5.90% 5.19% 5.56%

 

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 March 2020)

  • Bond prices in New Zealand followed international markets higher after the Reserve Bank of New Zealand cut the Official Cash Rate by 75 basis points, amid growing concern for the local economy on the back of the COVID-19 (coronavirus) outbreak. In its statement, the central bank said, “the slowdown in the global economy would act as a serious headwind for the New Zealand economy”. 
  • Furthermore, the RBNZ announced in March it would begin quantitative easing, buying up to $30 billion in government bonds. 
  • Bonds tend to rise in an environment of falling interest rates and against this backdrop, the New Zealand 10-year government bond yield ended the quarter down 57 basis points at 1.08%. 
  • The coronavirus outbreak saw local economic data come in worse than expected. Of note, the ANZ Business Confidence Index plummeted 45 points to -64 in March, a near-record low. The report showed significant concerns among the retail and employment sectors. 
  • Given the uncertainty of the economic landscape, central banks are expected to remain accommodative, a scenario supportive for bond investors. 
  • The fund has a significant weighting to sovereign, or government bonds, which outperformed corporate bonds during the quarter. 
  • Bonds play an integral part of any diversified investment, helping provide a solid foundation for a broader portfolio.

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 is the issuer and manager of the OneAnswer KiwiSaver Scheme. Important information is available under terms & conditions. Download the guide and product disclosure statement.