OneAnswer KiwiSaver Scheme International Fixed Interest Fund
Quarterly fund report
How has the fund performed?
Performance as at 31 December 2025
Rate | |
|---|---|
3 months | 0.48% |
1 year | 3.97% |
3 years (p.a.) | 4.06% |
5 years (p.a.) | -1.32% |
10 years (p.a.) | 1.43% |
Since launch (p.a.) | 3.73% |
Performance is after the annual fund charge and before tax. KiwiSaver rates, fees and agreements.
What happened this quarter (three months to 31 December 2025)
Global bond markets delivered mixed results this quarter, shaped by central bank decisions and inflation trends. In the US, the Federal Reserve cut interest rates twice, lowering the federal funds rate by a total of 50 basis points as inflation continued to ease and the job market continued to soften. The yield on the US 10-year government bond ended the quarter roughly where it started, at 4.17%.
European bond markets were more varied. German government bond yields rose 15 basis points to 2.86% as the European Central Bank kept rates on hold, signalling caution despite inflation nearing target. UK bond yields however fell 22 basis points to 4.48%, after the Bank of England delivered a December rate cut, citing progress on inflation and a more balanced growth outlook. The UK government’s budget, which emphasised fiscal discipline, also helped underpin sentiment.
In contrast, Australian bonds underperformed, with 10-year yields climbing 44 basis points to 4.75%. A higher-than-expected inflation reading prompted the Reserve Bank of Australia (RBA) to keep interest rates on hold and push back expectations for rate cuts, which weighed on bond prices.
Despite the mixed performance this quarter, most global bond markets delivered positive returns over 2025, as easing inflation and rate cuts boosted investor confidence.
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 and strategy 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.