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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 | -0.12% | 0.53% | 8.18% | 3.36% | 2.83% |
| Appropriate Market Index (AMI)2 | 0.27% | 0.92% | 8.20% | 3.54% | 3.10% |
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 | -0.14% | 0.48% | 8.00% | 3.33% | 2.80% |
| Appropriate Market Index (AMI)2 | 0.27% | 0.92% | 8.20% | 3.54% | 3.10% |
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 | 4.13% |
| French Discount T-Bill 190325 0.00 Gb | 1.65% |
| NZ Government 150534 4.25 Gb | 1.57% |
| NZ Government 2.75% 15/04/2037 | 1.52% |
| NZ Local Govt Funding Agency 150425 2.75 GB | 1.47% |
| Housing NZ Ltd 3.36% 12/06/2025 | 1.32% |
| NZ Government 150541 1.75 GB | 1.24% |
| Japan Treasury Disc Bill 190525 0.00 Gb | 1.22% |
| Federal National Mortgage Association 150344 0.00 Tba | 1.20% |
| French Discount T-Bill 160425 0.00 Gb | 1.16% |
Commentary
As of 28 February 2025
Market Overview
Fund Commentary
Returns for Conservative Fund investors were flat in February, with the weakness in equity markets off-set by solid returns from the defensive asset classes.
All of the ‘growth asset classes’ (equities and listed property) were down in absolute terms for the month, with the exception of unhedged global equities which posted a small gain. In terms of relative performance the funds were behind benchmark, with Core, Concentrated and Global Equities all underperforming. WCM (‘growth’ style) has been the stand-out manager in recent times for the Global Multi-Manager Equity Fund, however they underperformed in February. AppLovin is the largest position in the WCM portfolio and the share price fell 11% on some negative reports from short-sellers. Progressive (held by Royal London and Nikko-Europe), SAAB (WCM) and Yum!Brands (JPM) all posted strong gains for the month. The Concentrated and Core Equity funds underperformed the NZ equity market, driven by positions in Ryman and Spark. Ryman surprised the market with a large $1bln capital raising to reduce debt and gearing levels, while Spark was down after another weak earnings release. Overweight positions to Worley, A2 Milk and Contact Energy all added value with following solid earnings results. The domestic bond funds outperformed thanks to the long duration positioning which benefited from the fall in interest rates, while the Global Bond Fund was flat versus benchmark.