Liquidity Fund as at 31 December 2024
The Aurora Liquidity Fund continued to deliver healthy returns in the fourth quarter, supported by strong cash yields. Over the past year, cash has provided solid returns with minimal risk, making it an attractive option for investors with a short investment time horizon.
During the quarter, the Reserve Bank of New Zealand lowered the Official Cash Rate (OCR) to 4.25% to help stimulate economic growth. With the New Zealand economy remaining weak, further OCR cuts are anticipated in the near term.As rates decline, cash yields are expected to soften, which will likely lead to slightly lower returns for the Liquidity Fund moving forward. However, this should not be a concern for investors, as the primary goal of this fund is to protect your savings, offering stability and security rather than aggressive growth.