Single Sector Fund
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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.
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 | Very 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.
| One month | Three months | One year | Three years (p.a) | Five years (p.a) | |
|---|---|---|---|---|---|
| Fund performance1 | 1.44% | 0.81% | 4.29% | 10.50% | |
| Appropriate Market Index (AMI)2 | 1.98% | 2.18% | 6.97% | 11.86% |
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 | 1.44% | 0.82% | 4.32% | 10.63% | |
| Appropriate Market Index (AMI)2 | 1.98% | 2.18% | 6.97% | 11.86% |
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 | 9.68% |
| Fisher & Paykel Healthcare | 2.78% |
| Microsoft Corp USD0.00005 | 1.92% |
| Infratil Limited | 1.65% |
| Spark New Zealand Ltd | 1.64% |
| Contact Energy Limited | 1.51% |
| Summerset Group Holdings Ltd | 1.39% |
| Outstanding Settlement Receipts - EUR | 1.33% |
| EBOS Group Limited | 1.27% |
| Japan Government 110422 0.0 Gb | 1.14% |
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Commentary
As of 31 December 2021
Market Highlights
The strategy underperformed its benchmark for the quarter, but outperformed its benchmark over the month, with most sectors delivering returns above their respective market indices. Particularly strong were our NZ equity funds with the Core Fund being 0.9% ahead for the month and 3% ahead for the year. Global shares also performed well ahead of the benchmark but struggled to keep pace with the growth of the market over the full year. The Option Fund returned a very strong 4% for the month of December, but our other non-traditional investment sectors fared less well - with the Multi-strategy Fund being slightly negative but more significantly the ARK strategy, which fell nearly 11%, offsetting some of the gains elsewhere in the fund. Overall, December completed an acceptable year for the fund with returns being broadly in line with our long-term expectations. We do not expect the levels of divergence between the NZ and global markets to continue at the levels observed during 2021, but there are a number of factors which will likely lead to ongoing volatility in markets. Most obviously the way that different central banks and economies face and deal with higher inflation will play a role, as will the ongoing pandemic saga. Along with heightened geo-political tensions in eastern Europe and the South China Sea, it’s possible to argue for a wide range of investment outcomes in 2022. The fund will approach this environment focused on its core strategy and will be managed with a medium to long term perspective being diversified both across and within sectors to help dampen volatility whilst achieving its investment objective.