Low yields.

[Snoopy]

Why is the Smartshares bond fund NZB paying such low dividend yields, about 1.6%? I would have thought their price should have gone down and yield up to approximate current rates.

Some more reflections on your original question Nor.

How do you find out what is going on inside NZB? Ideally you would look at the fund prospectus or the commentary in what look like quarterly fund updates to determine this. But I have done so and this information is not disclosed. Also 'not disclosed' is what happens to the fund income received net of fees that is not paid out in dividends. Is it reinvested? Or does it go into the ANZ cash account? We don't know, and there is no way given to find out. We do know the strategy of the NZB fund from the original 2015 prospectus though:
"To outperform the S&P/NZX A-Grade Corporate Bond Index over a rolling three-year period."

But what is the managers' operational strategy to try and achieve this? We aren't told. Why has the fund seemingly under-performed its benchmarks in 2017, 2018, 2019, 2020 and 2023? We aren't told. Finally if you ring the fund manager up to clarify some of these points, you get told to submit your query by e-mail. This I did. But I never got a reply.

This leaves any investment in Smartshares NZB to be very much a 'guessing game'. So I make no apology for making some of my own guesses to try and understand what is going on inside the NZB fund.

SNOOPY