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This fund aims for a steady investment return over the medium to longer term without too many ups and downs. The fund does this by investing across a range asset classes with exposure to shares for growth complemented by exposure to bonds and alternatives to reduce volatility.
Growth Fund Strategic Asset Allocation
Risk Indicator (volatility)
Target Asset Allocation
This number indicates the relative 'risk' level of this fund based on the types of assets it is invested in, ranging from level 1 (least risky) to 7 (most risky).
| Risk category | Description of volatility |
| 1 | Very low |
| 2 | Low |
| 3 | Medium |
| 4 | Medium to High |
| 5 | High |
| 6 | Very high |
| 7 | Extremely high |
The risk indicators are calculated using returns of the funds, the returns of the fund’s market index or a combination of both, for the previous five years. Index returns or a mix are used if the fund has existed for less than five years. All Managers are required to use the same methodology so you can compare the risk of different funds if you are researching more than one manager.
Hear from Alan Clarke, Portfolio Manager. In this video, he explains what an average day in his job looks like and how Diversified Funds work. Alan also talks us through the investment process and details the main reasons why you should consider a Diversified Fund for your next investment.
| One month | Three months | One year | Three years (p.a) | Five years (p.a) | |
|---|---|---|---|---|---|
| Fund performance1 | 0.98% | 4.63% | 12.10% | 0.30% | 4.04% |
| Appropriate Market Index (AMI)2 | 0.52% | 4.65% | 12.53% | 2.84% | 5.67% |
AMI (appropriate market index) is a theoretical portfolio with similar underlying assets as the fund. This allows investors to see a comparison of how the value of those assets have changed in the market relative to the fund.
| One month | Three months | One year | Three years (p.a) | Five years (p.a) | |
|---|---|---|---|---|---|
| Fund performance1 | 0.96% | 4.57% | 11.99% | 0.26% | 4.05% |
| Appropriate Market Index (AMI)2 | 0.52% | 4.65% | 12.53% | 2.84% | 5.67% |
AMI (appropriate market index) is a theoretical portfolio with similar underlying assets as the fund. This allows investors to see a comparison of how the value of those assets have changed in the market relative to the fund.
| Security Name | Percentage |
|---|---|
| Microsoft Corp | 2.02% |
| Fisher & Paykel Healthcare | 1.97% |
| Nvidia Corp | 1.94% |
| Infratil Limited | 1.91% |
| JPM Multi Manager Alternatives X Acc NZD Hedged | 1.89% |
| Amazon Com Inc | 1.45% |
| Contact Energy Limited | 1.41% |
| NZ Government 2.75% 15/04/2037 | 1.39% |
| Meta Platforms Inc | 1.33% |
| NZ Government 150534 4.25 Gb | 1.22% |
Commentary
As of 31 August 2024
August fund performance was positive in absolute terms, and slightly ahead of benchmark in relative terms, with most share and bond markets posting positive returns locally and globally. The one exception was for unhedged global equity markets which fell on the back of a stronger NZ dollar. The Global Shares strategy strongly outperformed the benchmark, while the local equity funds underperformed slightly. The local listed property sector had a very strong month, with the Property Fund and index both up just over 7%. For Global Shares the top contributors to relative performance were US insurer Progressive Corp, Japanese optical products manufacturer HOYA Corp, and global consumer healthcare company Haleon. All three reported solid earnings numbers and/or improved guidance for their respective markets. The ARK Disruptive Innovation Fund was down -4.6% for the month. Key detractors for the month included Coinbase, Tesla, and Twist Bioscience. Tesla's latest Full-Self Driving (FSD) model was released ahead of the company's robotaxi event in October. Twist Bioscience reported earnings with revenue ahead of guidance and improved gross margins, but the stock still underperformed. Both the global bond and local bond fund performed in line with their respective markets over what was a very positive month for fixed income investors.