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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 | -0.20% | 1.08% | 8.18% | 1.81% | 2.77% |
| Appropriate Market Index (AMI)2 | 0.07% | 1.30% | 7.81% | 2.14% | 3.00% |
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 | -0.22% | 1.04% | 8.05% | 1.79% | 2.75% |
| Appropriate Market Index (AMI)2 | 0.07% | 1.30% | 7.81% | 2.14% | 3.00% |
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 | 4.40% |
| United States Treasury 250225 0.00 Gb | 1.89% |
| NZ Local Govt Funding Agency 150425 2.75 GB | 1.73% |
| France Republic Of Government 080125 0.00Gb | 1.73% |
| NZ Government 150534 4.25 Gb | 1.58% |
| NZ Government 2.75% 15/04/2037 | 1.52% |
| Japan Treasury Disc Bill 250225 0.00 Gb | 1.27% |
| NZ Government 150541 1.75 GB | 1.24% |
| Rbc Collateral A/C | 1.21% |
| Federal National Mortgage Associtation 150144 0.00 Tba | 1.05% |
Commentary
As of 31 December 2024
The fund posted a solid gain of 1.4% in the fourth quarter of 2024, slightly ahead of the return of the benchmark.
The unhedged Global Equity Fund was far-and-away the best performing Fund for the quarter due mostly to the sharp fall in the NZD, particularly versus the US Dollar. The Global Multi-Manager Equity Fund was comfortably ahead of the benchmark for the quarter with the two growth-focused managers out-performing. WCM (‘growth’ style) was the standout underlying manager, outperforming the benchmark by 8.9% over the fourth quarter and by 16% for 2024. Mobile technology company AppLovin was up nearly 150% for the quarter, and there were also strong returns from Amazon (Consumer Discretionary), GE Verona (energy equipment manufacturing and services) and LPL Financial (US broker-dealer). Nikko AM Europe (‘growth’ style) also performed well, ahead of benchmark by 2.1% and 10.1% for the quarter and year respectively. The two ‘core’ managers Royal London AM and JPM AM were slightly behind benchmark. The local equity funds posted strong returns over the quarter on an absolute basis. Arcadium Lithium (+94% for the quarter) was the largest contributor following a takeover bid from Rio Tinto at U$5.85 per share. The Property Fund and the Global Bond Fund both fell slightly and were both slightly behind benchmark for the quarter.