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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 Alan Clarke, Portfolio Manager. In this video, he explains what an average day in his job looks like and how the Nikko AM Conservative Fund works.
| One month | Three months | One year | Three years (p.a) | Five years (p.a) | |
|---|---|---|---|---|---|
| Fund performance1 | 0.90% | 3.33% | 6.17% | 5.14% | 2.83% |
| Appropriate Market Index (AMI)2 | 0.88% | 3.10% | 6.20% | 5.23% | 3.11% |
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 | 0.87% | 3.22% | 5.91% | 5.05% | 2.78% |
| Appropriate Market Index (AMI)2 | 0.88% | 3.10% | 6.20% | 5.23% | 3.11% |
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 | 4.66% |
| Japan Treasury Disc Bill 290925 0.00 Gb | 3.41% |
| NZ Government 150541 1.75 GB | 1.78% |
| NZ Government 2.75% 15/04/2037 | 1.68% |
| NZ Government 150534 4.25 Gb | 1.66% |
| NZD BNP Paribas A/C | 1.60% |
| French Discount T-Bill 030925 0.00 Gb | 1.46% |
| Japan Government Of 120825 0.00 Gb | 0.95% |
| New Zealand Government 150535 4.50 Gb | 0.92% |
| Federal National Mortgage Association 150843 0.00 Tba | 0.88% |
Commentary
As of 31 July 2025
Returns for the Conservative Fund were strong in July, with all of the underlying strategies posting positive returns with the exception of global bonds which fell slightly.
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 outperformed by being underweight Japanese rates and overweight commercial-MBS. 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.