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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.
| One month | Three months | One year | Three years (p.a) | Five years (p.a) | |
|---|---|---|---|---|---|
| Fund performance1 | 0.84% | 1.94% | 8.52% | 3.09% | 2.66% |
| Appropriate Market Index (AMI)2 | 0.57% | 1.99% | 8.18% | 3.07% | 2.88% |
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 | 4.52% |
| United States Treasury 250225 0.00 Gb | 1.83% |
| NZ Local Govt Funding Agency 150425 2.75 GB | 1.68% |
| French Discount T-Bill 190325 0.00 Gb | 1.68% |
| NZ Government 150534 4.25 Gb | 1.55% |
| NZ Government 2.75% 15/04/2037 | 1.50% |
| Japan Treasury Disc Bill 250225 0.00 Gb | 1.25% |
| NZ Government 150541 1.75 GB | 1.22% |
| French Discount T-Bill 160425 0.00 Gb | 1.18% |
| Rbc Collateral A/C | 1.09% |
Commentary
As of 31 January 2025
Market Overview
Fund Commentary
Overall returns for Conservative 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.