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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 | 0.99% | 3.90% | 16.66% | 1.13% | 4.16% |
| Appropriate Market Index (AMI)2 | 0.58% | 4.19% | 16.01% | 3.43% | 5.56% |
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 | 1.90% |
| 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 30 September 2024
The Balanced Fund registered a strong gain of 4.2% in the third quarter of 2024, in line with the return of the benchmark. The Global Share Fund was comfortably ahead of the benchmark for the quarter. The key contributors were from a broad range of sectors with Haleon (consumer staples), TransUnion (industrials) and Hoya Corp (healthcare) all performing well. This was driven by either their recent earnings report or improved forward guidance. The main detractors were also a mixed bunch, with Synopsys (IT), Elevance Health (healthcare) and SLB (energy) all detracting from relative performance. The local equity funds posted solid returns over the quarter on an absolute basis, but underperformed their relevant market indices. The Property Fund was the standout performer for the quarter in absolute (9.7%), partially on expectations of interest rates to come from the RBNZ. The Property Fund also did well in relative terms with strong performance from Waypoint REIT and Stride Property. Both the NZ and Global Bond funds added value over the quarter, with 1-year numbers also strongly ahead of benchmark. The New Zealand bond funds had been well positioned for a fall in interest rates, but also added value being underweight government bonds which underperformed swaps for the quarter. The Global Bond Fund added value through duration and curve positioning, as well as from the overweight to asset and mortgage-backed securities. Security selection in emerging market debt was a detractor over the quarter.