SuperLife Overseas Bonds

At 0.59 per cent, this fund charges roughly half the typical fee for a defensive fixed-interest option, and its $10.4 million in assets are spread across a global bond portfolio that is almost entirely international debt.

The allocation is a deliberate bet on sovereign and mortgage-backed securities from major developed markets. The top holdings include a 6.5 per cent Freddie Mac mortgage pool maturing in 2054, French and British government bonds, and US Treasuries with maturities stretching to 2044. China Development Bank bonds also feature, classified here as cash equivalents. The portfolio is built for diversification across currencies and interest-rate environments, with 99.9 per cent in international bonds and a sliver in cash. The fund returned 4.0 per cent over the past year, though its five-year annualised return sits at just 0.5 per cent, reflecting the brutal bond market of recent years. The structure is straightforward: low-risk, geographically spread fixed income, with no New Zealand bonds, no equities, and no property.

With a risk level of 2, this is a conservative fund designed for stability rather than growth, and its fee structure keeps costs contained relative to peers in the category.

General information only, not financial advice. Past performance is not a reliable indicator of future results.