Diversified Funds
On this page:
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 | 1.93% | 7.17% | 9.72% | 0.81% | 4.22% |
Appropriate Market Index (AMI)2 | 1.40% | 5.65% | 10.87% | 3.18% | 6.13% |
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 | 1.93% | 7.17% | 9.71% | 0.81% | 4.30% |
Appropriate Market Index (AMI)2 | 1.40% | 5.65% | 10.87% | 3.18% | 6.13% |
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 | 4.80% |
Microsoft Corp | 2.51% |
Nvidia Corp | 2.02% |
Fisher & Paykel Healthcare | 1.96% |
Infratil Limited | 1.92% |
Spark New Zealand Ltd | 1.79% |
NZ Government 2.75% 15/04/2037 | 1.76% |
Contact Energy Limited | 1.61% |
Facebook Inc Com Usd Cl A | 1.55% |
Netflix Inc | 1.24% |
Commentary
As of 29 February 2024
Market Highlights
February fund performance was strong in terms of both absolute return and relative returns, with global share markets continuing to move higher. Global shares were the main contributor for both absolute and relative returns, as well as the ARK Disruptive Innovation strategy which was up double digits for the month. Outperformance from the global shares portfolio was driven by positive stock selection in a range of sectors including Info Tech (Nvidia), Communications Services (Meta), and Financials (Palomar and Ryan Speciality). There was some weakness from the consumer discretionary names across the portfolio, with Sony Group, Amadeus IT, Compass and Bookings.com all underperforming the broader market. The ARK Fund was up strongly over February. The top contributors include Coinbase and Robinhood. On the back of crypto asset appreciation and volatility, Coinbase reported 50% year-over-year growth in net revenue for the fourth quarter of 2023. Robinhood reported strong fourth quarter earnings ahead of Wall Street estimates. The top detractors include Roku and Teladoc after fourth-quarter earnings reports came out below expectations. Roku was also impacted by news of Walmart acquiring connected TV competitor, Vizio. The NZ equity funds within the portfolio continued their solid start for the year, outperforming the NZX50 Index. Strong performance from NextDC, Ingenia Communities and Fisher & Paykel Healthcare were key drivers. Local and global bond Funds were in line with, or slightly behind, their respective benchmarks.