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.
| One month | Three months | One year | Three years (p.a) | Five years (p.a) | |
|---|---|---|---|---|---|
| Fund performance1 | 1.92% | 7.56% | 9.05% | 7.04% | 4.71% |
| Appropriate Market Index (AMI)2 | 1.96% | 7.21% | 8.90% | 8.29% | 6.23% |
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 Global Select Equity X Acc USD | 12.72% |
| NZD BNP Paribas A/C | 2.33% |
| Microsoft Corp | 1.79% |
| Infratil Limited | 1.78% |
| Japan Treasury Disc Bill 290925 0.00 Gb | 1.78% |
| Amazon Com Inc | 1.47% |
| Fisher & Paykel Healthcare | 1.41% |
| Nvidia Corp | 1.41% |
| Kiwi Property Group Limited | 1.31% |
| Contact Energy Limited | 1.29% |
Commentary
As of 31 July 2025
Returns for the Balanced Fund were strong in July, with all of the underlying strategies posting positive returns with the exception of global bonds which fell slightly.
All of the ‘growth’ asset classes (equities and listed property) posted strong absolute returns over the month, with the Global Equity Fund (Unhedged) and NZ Property Fund the two standouts with returns of 5.7% and 4.1% respectively. Within the Multi-manager Global Equity Fund, both ‘growth’ style managers (WCM and NAM-Europe) and Royal London (‘core’) underperformed, while JPMorgan (‘core’) outperformed. Technology names such as Amazon.com, Microsoft, Synopsis were the main contributors to performance, while the biggest detractors were Danish pharmaceutical company Novo Nordisk and the US insurance broker Brown & Brown. In local property, Kiwi Property (KPG) and Stride Property (SPG) were both up nearly 10% for the month. The KPG performance was driven by ASB Bank extending the lease for their headquarters in the Wynyard Quarter. In local equities Infratil and Ryman returned 9.7% and 11.6% respectively, the former on improved valuation on its investment in CDC Data Centres.
NZ bonds delivered solid returns with rates moving slightly lower, and the funds’ higher income accrual and longer duration positioning added value. The local bond funds are positioned to benefit if rates move lower as the RBNZ continues with its easing cycle. Global bond markets fell slightly and the Global Bond Fund only marginally outperformed by being underweight Japanese rates and overweight commercial-MBS.