Diversified Funds
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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.
George Carter is the former Managing Director of Nikko AM. In this video, he explains what an average day in his job looks like and how Diversified Funds work. George 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 | 1.66% | -0.13% | 9.15% | 0.11% | 3.60% |
| Appropriate Market Index (AMI)2 | 1.02% | 0.09% | 8.99% | 2.33% | 5.32% |
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 | 1.64% | -0.19% | 9.10% | 0.09% | 3.63% |
| Appropriate Market Index (AMI)2 | 1.02% | 0.09% | 8.99% | 2.33% | 5.32% |
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 |
|---|---|
| JPM Multi Manager Alternatives X Acc NZD Hedged | 4.69% |
| Microsoft Corp | 2.28% |
| Infratil Limited | 2.17% |
| Nvidia Corp | 2.13% |
| Fisher & Paykel Healthcare | 1.96% |
| Amazon Com Inc | 1.66% |
| Contact Energy Limited | 1.64% |
| Spark New Zealand Ltd | 1.49% |
| Meta Platforms Inc | 1.34% |
| NZ Government 150534 4.25 Gb | 1.32% |
Commentary
As of 30 June 2024
Market Highlights
The Balanced Fund registered a small fall in the second quarter of 2024, with relative returns behind that of the benchmark. The ARK fund was the main detractor over the quarter (-10%) but the strategy did post a solid +4.4% return in June with names including Tesla, Palantir and Roblox rallying. The Global Share Fund was slightly ahead of benchmark for the quarter. Names that have benefited from the huge amount of interest in AI infrastructure continued to do well, and the portfolios positioning in Nvidia, Taiwan Semiconductor and Broadcom benefited from these names performing strongly. Companies in the more traditional sectors of finance, Consumer and Energy were the main detractors, led by PT Bank Mandiri, Samsonite and Schlumberger. The local equity and property funds were weak over the quarter on an absolute basis, but pleasingly outperformed their relevant market indices. Both the NZ and global bond portfolios added value over both the month and the quarter, with 1-year numbers also comfortably ahead of benchmark. The New Zealand bond funds increased their overweight to duration as interest rates moved higher in April, and this positioning was rewarded in May and June when they fell back to near where they began. The main positive drivers of relative return for the global bond fund were country and corporate bond selection, while the overweight to US duration detracted.