The Income Fund gives our clients access to a diverse portfolio of fixed interest investments from around the globe. This fund combines our rigorous investment research with active portfolio management. As well as being an option to invest in this fund as part of a diversified investment strategy across our managed funds, this fund offers an alternative to bank deposits. Your money is invested throughout the world in a range of industries and sectors that are not available in Australasia, providing added diversification. Because this fund is designed to be a more conservative fund there are no investments in shares. You can also access your money at any time and there is a low minimum for investment.
Cash and fixed interest plays an important stabilising role in any investment portfolio. Think of it as something of a financial umbrella to offer your portfolio protection in difficult market conditions. This is because these types of investments are expected to offer more stable, though lower, returns over the long term.
* New Zealand Government Stock Index (Inception to 31/10/2016), S&P/NZX 2 Year Swap Index (1/11/2016 to now)
The Fund holds a range of different investments, including corporate and Government bonds, as well as cash holdings. See below for more detail on these.
The rapid pace at which the COVID-19 outbreak spread across the globe sent financial markets into a tailspin during March. The best performers in the portfolio were our holdings in safe-haven, government bonds such as U.S Treasuries. The portfolios holdings in government-issued securities and cash currently stands at a very conservative 65%.
The worst performer in the portfolio this month was our holding in the Italian retail and commercial bank, BMPS. We first bought the bonds prior to the COVID-19 outbreak noting their strong turnaround in operations and having identified what we believed to be a series of positive catalysts on the horizon. Needless to say, our timing was inopportune, as Italy became the centre of the global coronavirus pandemic in the last month. While a number of these catalysts have now been delayed we believe BMPS is core to the Italian banking industry (4th largest bank) and will ultimately play an important role in the recovery of the economy once the crisis abates.
Is there anything we
can help you with?
Chart »
Apply Now »
Fees »
