OneAnswer KiwiSaver Scheme Cash Fund

Performance is after the annual fund charge and before tax. Legal information and disclaimers.

• It was a volatile quarter for both share and bond markets, as tariffs announced by US President Donald Trump saw most global share markets fall. Bond prices had a more mixed period, with US bonds rising, while several bond markets in Europe fell. Bond prices rise when bond yields decline. 
• The US Federal Reserve (the Fed) left interest rates unchanged during the quarter as concerns that inflation may persist for longer than the Fed had previously thought, while central banks in Canada, Sweden and the eurozone continued to cut interest rates. And in Australia, the Reserve Bank of Australia cut interest rates for the first time since the pandemic emergency rate cuts
• In New Zealand, the Reserve Bank of New Zealand cut the Official Cash Rate (OCR) by 50 basis points in February, responding to a prolonged period of sluggish growth and falling inflation, while it was a mixed quarter for economic data. The unemployment rate jumped to 5.1%, up from 4.8%, while on a more positive note, GDP expanded by 0.7% in the final quarter of 2024.
• Against the backdrop of a volatile quarter for many assets, cash proved to be a robust investment, delivering positive and stable returns, while maintaining capital preservation.

The fund invests mainly in cash and cash equivalents. These may include investments issued by New Zealand-registered banks, the New Zealand Government, corporations or local authorities, or non-New Zealand governments.

This chart shows the mix of assets that the fund generally intends to invest in – 100% cash and cash equivalents.