The NZD Conservative Fund is a New Zealand Dollar denominated fund employing an active asset allocation strategy and a passive investment management strategy invested 70% in income assets (New Zealand fixed interest, international fixed interest, and cash and cash equivalents), with 30% exposure to growth assets (Australasian and international equities).

 

Investment Objectives

The fund seeks to track composite indices (before annual fund charge and tax), comprising: 10% S&P/NZX Bank Bills 90-Day Index; 40% Bloomberg NZ Bond Govt 0+ Yr Index; 20% Bloomberg Global Aggregate Index, 100% hedged to NZD; 20% Morningstar New Zealand (total return) Index, including imputation credits; 5% MSCI World Index NR ex NZ, Tobacco, Controversial and Nuclear Weapons; and 5% MSCI World Index NR ex NZ, Tobacco, Controversial and Nuclear Weapons, 100% hedged to NZD.


Investment Managers

The table below sets out the target asset allocation and underlying investment managers for the Fund.

For more information you can access the Funds Statement of Investment Objectives and Policy (SIPO).

Asset Class

Investment Manager

 Product Name Benchmark Asset Allocation 1

Cash and cash equivalents

Harbour Asset Management Limited

Harbour Enhanced Cash Fund

 10%

New Zealand fixed interest

 Simplicity NZ Limited Simplicity NZ Bond Fund 40%

International fixed interest

 Smartshares Limited Smartshares Global Aggregate Bond ETF 20%

Australasian equities

 Simplicity NZ Limited Simplicity NZ Share Fund 20%

International equities

 Mercer (N.Z.) Limited

Mercer Socially Responsible Overseas Shares Index Portfolio (5%)

Mercer Socially Responsible Hegded Overseas Shares Index Portfolio (5%)

 10%
Total assets

100%

 

1 The Benchmark Asset Allocation, Maximum and Operating ranges are set out in the SIPO.

 

Fund Performance

Please find below the latest performance figures for the NZD Conservative Fund as at 30 November 2024. The returns are after fees and taxes:

 

PIR Tax Rate Month Quarter 12-months 3-Year 5-Year Inception

28%

 1.36% 1.74% 8.45% 0.57% -0.01% 1.34%

0%

1.38%

1.83%

9.67%

0.85%

-0.06%

1.52%

* NZD Conservative Fund was established on 24 December 2018

* Returns for periods longer than one year are annualised

 

The chart below shows the fund return after fund charges and tax (at 28%) for each full calendar year the fund has been in existence. The last bar shows the performance of the current calendar year to date (1 January 2024 to 30 November 2024):