Diversified Funds
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This fund aims for more modest investment returns which grow steadily over time, keeping ups and downs to a minimum. The fund does this by investing mostly in bonds and cash, but also has a moderate exposure to shares.
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.
Hear from George Carter, 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 | 1.75% | 2.49% | 7.58% | 0.76% | 2.88% |
Appropriate Market Index (AMI)2 | 1.57% | 2.06% | 7.10% | 1.09% | 3.10% |
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 | 1.75% | 2.50% | 7.63% | 0.78% | 2.89% |
Appropriate Market Index (AMI)2 | 1.57% | 2.06% | 7.10% | 1.09% | 3.10% |
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 |
---|---|
NZ Government 2.75% 15/04/2037 | 2.01% |
NZ Government 150534 4.25 Gb | 1.87% |
Housing NZ 1.534% 10/09/2035 | 1.34% |
Rabobank Nederla 160326 Frn | 1.12% |
NZ Local Govt Funding Agency 150437 2.00 GB | 1.08% |
Westpac New Zealand 060726 Frn | 1.08% |
NZ Government Bond 3% 20/04/2029 | 0.99% |
Mufg Bank Ltd Auckland Branch 241126 Frn | 0.98% |
Goodman Property Trust | 0.92% |
NZ Govt Inflation Index Bond 20/09/25 | 0.92% |
Commentary
As of 31 March 2024
Market Highlights
The fund performance was strong in terms of absolute return and relative returns for the first quarter of 2024, with equities being the main driver of absolute returns. The Global Shares fund was the standout performer in absolute and benchmark relative terms over March (+5.8% unhedged), and over the quarter (+20.2% unhedged). Overweight positions in Nvidia, Meta and Netflix all added value, as did insurance names Palomar Holdings, Progressive Corp, and Ryan Speciality. Not owning Apple and Tesla also added to relative returns. Stock selection within industrials (Worley Ltd), and Consumer Discretionary (Sony and Amadeus IT) was a detractor. The Concentrated Equity fund delivered a strong return for the quarter, up 7.8%, well ahead of the NZ equity market. The largest positive contributors were positions in NextDC, Contact Energy and Ingenia Communities. NextDC was up 29.6% (in AUD) after announcing a good result but more importantly outlining a strong demand outlook driven by cloud and Artificial Intelligence data storage requirements. Both the NZ and global bond portfolios added value over both the month and the quarter.