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Income Fund

INCOME FUND

A conservative investment option

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3.5%
as at 30/04/2022
after fees and before tax
-5.2%
as at 30/04/2022
after fees and before tax
If you had invested $10,000 at
inception, today it would be worth ...
$14,590
inception date 18/04/2011
$1.0627
as at 24/05/2022
Minimum
investment
$100 per month

About the Fund

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.

Why choose the Income Fund

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.

 

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Growth of $10,000 invested in the fund since inception

* New Zealand Government Stock Index (Inception to 31/10/2016), S&P/NZX 2 Year Swap Index (1/11/2016 to now)


Sector Split

as at 30 April 2022

Sector Split

Geographic Split

as at 30 April 2022

Sector Split

Portfolio holdings

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.

view portfolio holdings »

 

Highlights and lowlights — April 2022

Your portfolios: Highlights and lowlights

April was a challenging month for fixed interest investors. In fact, as mentioned in recent commentaries, prices have been under pressure across global fixed interest markets since the start of last year. But more recently this trend has quickened, causing the Bloomberg Global Aggregate Index, a bell-weather for global investment grade bonds, to fall 5.5% in April.

Lower bond prices reflect a worsening in the global inflation environment, stemming mostly from the broadening impact that Russia’s invasion of Ukraine and China’s hard-line approach to its recent COVID outbreak is having on supply chains around the world. As a result, central banks have begun taking strong action to rein in inflation by rapidly raising interest rates. As a reminder, when interest rates rise, bond prices fall. Which is why fixed interest asset returns have been so negative of late. Unfortunately, the Income Fund was not immune to this with the price of many of its assets also falling this month.

Rising interest rates are however a double-edged sword. While they lower the price of the Fund’s assets today, they simultaneously lift the income, or yield, these assets will produce in the future. This has led to a meaningful improvement in the outlook for returns with the Fund’s yield lifting from 1.6% this time last year to over 4% at the end of April.

There were also some bright spots in terms of company reporting. Golden Goose, the Italian-based branded footwear business with sales in over 70 countries, reported very strong financial results for 2021, and management guided for solid sales growth in the first quarter (+35% year on year). The Golden Goose brand continues to resonate with consumers and the roll out of a direct-to-consumer distribution channel has improved margins during the past year. We remain confident in the company’s niche market position and related ability to generate positive free cash flow going forward.

Whitbread plc also reported a strong set of annual financial results which reflected pent up demand for leisure and business travel across the UK. The hotel group continues to take market share from independent operators which reflects the company’s strong ‘Premier Inn’ brand, scale advantage, consistent service standards, and direct distribution model to end customers. The company’s balance sheet is in a good spot and the executive team reiterated its commitment to an investment grade credit profile to support growth aspirations in the UK and Germany.

Fund resources

Fisher Funds Income Fund Updates

Your portfolio team

David McLeish

David McLeish »

Head of Fixed Income

Quin Casey

Quin Casey »

Portfolio Manager

Matt Logan

Matt Logan »

Senior Investment Analyst

Lyle  McNee

Lyle McNee »

Senior Investment Analyst

Luke O’Donovan

Luke O’Donovan »

Macro Analyst


OUR MANAGED FUNDS

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