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 | 1.13% | 0.51% | 6.67% | 0.38% | 2.34% |
| Appropriate Market Index (AMI)2 | 0.72% | 0.29% | 6.07% | 0.66% | 2.56% |
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.
| One month | Three months | One year | Three years (p.a) | Five years (p.a) | |
|---|---|---|---|---|---|
| Fund performance1 | 1.11% | 0.47% | 6.68% | 0.38% | 2.35% |
| Appropriate Market Index (AMI)2 | 0.72% | 0.29% | 6.07% | 0.66% | 2.56% |
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 |
|---|---|
| NZ Government 150534 4.25 Gb | 2.00% |
| NZ Government 2.75% 15/04/2037 | 1.98% |
| Housing NZ 1.534% 10/09/2035 | 1.37% |
| NZ Local Govt Funding Agency 150437 2.00 GB | 1.09% |
| Rabobank Nederla 160326 Frn | 0.99% |
| Westpac New Zealand 060726 Frn | 0.95% |
| Goodman Property Trust | 0.95% |
| China Construction Bank Nz Ltd 090226 Frn | 0.93% |
| Mufg Bank Ltd Auckland Branch 241126 Frn | 0.87% |
| NZLGFA 3% 15/05/2035 | 0.86% |
Commentary
As of 30 June 2024
Market Highlights
The Conservative Fund posted a moderate gain in the second quarter of 2024, with relative returns slightly ahead of benchmark.
The Global Share Fund was slightly ahead of benchmark for the quarter. Names that have benefited from the huge amount of interest in AI infrastructure continued to do well, and the portfolios positioning in Nvidia, Taiwan Semiconductor and Broadcom benefited from these names performing strongly. Companies in the more traditional sectors of finance, Consumer and Energy were the main detractors, led by PT Bank Mandiri, Samsonite and Schlumberger. The local equity and property funds were weak over the quarter on an absolute basis, but pleasingly outperformed their relevant market indices. Both the NZ and global bond portfolios added value over both the month and the quarter, with 1-year numbers also comfortably ahead of benchmark. The New Zealand bond funds increased their overweight to duration as interest rates moved higher in April, and this positioning was rewarded in May and June when they fell back to near where they began. The main positive drivers of relative return for the global bond fund were country and corporate bond selection, while the overweight to US duration detracted.