Q&A
Cash and Cash Equivalents in New Zealand
Four questions investors most often ask about cash funds in the ManagedFundsNZ coverage. Numbers are computed at build time from the FMA Disclose register and checked at publish.
What is a cash fund?
Funds holding bank deposits and short-term money-market instruments. Lowest-risk fund category; income-focused.
What annual fee should you expect to pay?
Annual fund charges in this category sit between 0.12% and 0.65% per annum, with a median of 0.26% across the 5 cash funds where the FMA Disclose register publishes a charge. Annual fund charge covers the management fee and underlying fund expenses. Performance fees and transaction spreads sit on top of this number.
What's the FMA risk-indicator range?
Funds in this category carry FMA risk indicators between 1 and 2 on the 1-to-7 standard scale (where 1 is the lowest historical volatility band and 7 the highest), measured across the 5 funds in the category that publish a risk-indicator value. The FMA's risk indicator is a backwards-looking measure of return volatility — it does not predict future loss.
Who are the active providers?
5 fund managers run at least one cash fund in our coverage.