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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 Diversified Funds work. Alan 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 | 0.68% | 3.90% | 12.56% | 1.50% | 2.73% |
| Appropriate Market Index (AMI)2 | 0.71% | 3.99% | 11.62% | 1.94% | 2.87% |
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 | 0.66% | 3.84% | 12.47% | 1.50% | 2.71% |
| Appropriate Market Index (AMI)2 | 0.71% | 3.99% | 11.62% | 1.94% | 2.87% |
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 | 2.18% |
| NZ Government 150534 4.25 Gb | 1.86% |
| Japan Government 111124 0.00 Gb | 1.52% |
| Housing NZ 1.534% 10/09/2035 | 1.31% |
| Japan Government 251124 0.00 Gb | 1.25% |
| NZ Government 150541 1.75 GB | 1.21% |
| Rabo 5.31% 05/04/2029 | 1.18% |
| NZ Local Govt Funding Agency 150425 2.75 GB | 1.11% |
| Fisher & Paykel Healthcare | 0.93% |
| Rabobank Nederla 160326 Frn | 0.90% |
Commentary
As of 30 September 2024
The Conservative fund posted a strong gain of 4.0% 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.