ANZ KiwiSaver Scheme Cash Fund

Performance is after the annual fund charge and before tax. Rates, fees and agreements.

• Although many central banks began cutting interest rates during the quarter, cash rates remain elevated compared to recent times, meaning the fund continued to deliver solid and steady returns over the quarter. The Cash Fund is a low-risk fund and aims to preserve capital for investors while offering low volatility in returns.
• During the quarter, economic data highlighted ongoing challenges the New Zealand economy is facing. Among the concerns were a 1.2% decline in Q2 retail sales (the ninth quarterly decline over the past 10 quarters) and unemployment rising to 4.6% (the highest level in more than three years).
• Meanwhile, the economy contracted by 0.2% in the three months to June 2024, raising the probability that the economy is in a recession.
• The weakening economy saw the Reserve Bank of New Zealand (RBNZ) cut the Official Cash Rate (OCR) by 25 basis points in August, its first cut since the pandemic emergency cut in 2020. The RBNZ followed this up in early October with a 50-basis-point cut, taking the OCR to 4.75%. In its press release, the central bank said it was more confident that inflation was back within its target band of 1% to 3%. 

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.