NZ Funds Income Strategy
Income Strategy is a defensive KiwiSaver fund managed by NZ Funds. It has 22,926 members and holds $154 million. It opened in 2010.
Fees and returns
- Annual fee
- 1.12% of your balance each year
- Return over 1 year
- +1.3% a year
- Return over 3 years
- +2.4% a year
- Return over 5 years
- +0.9% a year
Figures are after fees and tax, as at Q3 2026, sourced from the FMA Disclose Register.
How it compares
Over the last five years this fund returned +0.9% a year. The median for mainstream defensive funds over the same period was +1.7% a year, across 6 funds. This fund is behind that median, by 0.8 percentage points.
What it invests in
Cash and cash equivalents 50%, new zealand fixed interest 29%, international fixed interest 21%.
Largest holdings
- Westpac Bank Bill 2.49% 13/04/2026 9.66%
- Westpac Bank Bill 2.5% 20/04/2026 9.09%
- Westpac Bank Bill 2.54% 30/06/2026 7.99%
Year by year
| Financial year | Return |
|---|---|
| 2025/26 | +1.3% |
| 2024/25 | +4.5% |
| 2023/24 | +1.4% |
| 2022/23 | −2.8% |
| 2021/22 | +0.3% |
| 2020/21 | +13.7% |
| 2019/20 | −1.5% |
| 2018/19 | +3.2% |
| 2017/18 | +1.7% |
| 2016/17 | +2.8% |
About this fund
The NZ Funds Income Strategy is an actively managed income fund. Despite its defensive label it is not a plain cash fund: it invests mainly in New Zealand, Australian and United States corporate bonds of around three years' maturity, with foreign currency hedged back to New Zealand dollars, aiming for returns above term deposits over the business cycle. It is one of three underlying Strategies in the NZ Funds scheme. It has operated since 2010 and carries an annual fund charge of 1.12%.