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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.
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 | 1.95% | 3.69% | 14.62% | 4.64% | 4.34% |
| Appropriate Market Index (AMI)2 | 1.15% | 3.85% | 13.76% | 5.65% | 5.68% |
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 | 1.91% | 3.61% | 14.40% | 4.56% | 4.31% |
| Appropriate Market Index (AMI)2 | 1.15% | 3.85% | 13.76% | 5.65% | 5.68% |
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 | 12.80% |
| Infratil Limited | 1.60% |
| Amazon Com Inc | 1.52% |
| Contact Energy Limited | 1.49% |
| Microsoft Corp | 1.38% |
| Fisher & Paykel Healthcare | 1.36% |
| Goodman Property Trust | 1.12% |
| Summerset Group Holdings Ltd | 1.12% |
| Kiwi Property Group Limited | 1.11% |
| Spark New Zealand Ltd | 1.10% |
Commentary
As of 31 January 2025
Market Overview
Fund Commentary
Overall returns for Balanced Fund investors were strong in January, and 3-month and 1-year returns are also very strong in both absolute and relative terms. With the exception of NZ equities (-0.9%) and NZ bonds (flat), all asset classes posted solid absolute returns in January, with global equities again the strongest performing asset class. The Global Multi-Manager Equity Fund had another strong month in terms of relative performance with 3 of the 4 managers out-performing. WCM (‘growth’ style) was the standout and Royal London AM (core) also had a very strong month. While overweights to outperforming technology-related names such as AppLovin Corp, Amazon.com, TSMC and Meta Platforms counted among the top 10 individual contributors, there was also good representation from the industrials, consumer discretionary, healthcare and financials sectors. The Concentrated Equity Fund outperformed the NZ equity market, driven by positions in Ingenia Communities, Arcadium Lithium and Aristocrat Leisure. Ingenia upgraded its earning guidance, while Arcadium continues to move higher as it meets further requirements for the takeover by Rio Tinto. The global bond Fund outperformed thanks to the country positioning being overweight Swedish rates versus Japanese rates, as well as positioning for a steeper yield curve in European Government bonds.