Investor type – Balanced 2Mike Heath2024-07-04T11:37:57+12:00
The Balanced Investor
A ‘Balanced’ investor has a medium appetite for risk but is equally risk adverse. They can tolerate seeing the value of their portfolio rise and fall somewhat. They can achieve a moderate level of returns over the long term. They may rely on a small amount of regular income from investments to live on.
Exposure to growth and income assets will drive the performance of your investment portfolio i.e. the returns you generate, and the volatility (rise and fall of the value of your investments) you will experience.
A ‘Balanced’ investor typically has a portfolio with 40%-65% exposure to growth assets, like shares and property, with the remainder of the portfolio allocated to income assets, like cash and bonds.
It’s important to note that, while growth assets offer the greatest potential for returns, they generally come with a higher amount of risk i.e. you could potentially experience steep losses or gains.
The information above is sourced from Sorted as at July 2024. Past performance is not an indication of future performance. If you require individual advice, please speak to a licensed financial advisor.
Estimated range of returns:
-2.8% – 15.2%*
*According to Sorted, ‘Balanced’ investors can reasonably expect 5.9% returns (before fees and tax) per annum, while the full range of possible returns could be from -2.8% to 15.2%.
Diversified funds we have that may suit a Balanced investor
A diversified fund is a managed fund that is broadly invested across different assets, markets and regions. Diversified funds are designed with a pre-set mix of growth and income assets, that are aligned with different investor types and their appetite for risk.
Your investor type or the right mix of assets for you will depend on your investment objectives, timeframe and tolerance for risk.
In the table below, we have a number of diversified funds built specifically to match the growth and income asset exposure of a ‘Balanced’ investor type profile.
Fund
PDS
Description
Risk Category
Target Growth/Income Assets
Fee*
QFU Fee
Buy/Sell Spread
1 Month
3 Months
6 Months
1 Year
3 Years
5 Years
10 Years
Management Style
Available in the InvestNow KiwiSaver Scheme?
Generate Focused Growth Managed Fund
The objective of the Focused Growth Managed Fund is to provide a higher growth investment return over the long-term through investment in a portfolio of actively managed cash, fixed interest, property and infrastructure assets, Australasian equities and international equities.
Aggressive
95% / 5%
1.41
1.41%
0% / 0%
3.94%
6.27%
12.77%
28.24%
8.45%
8.82%
–
Active
Yes
Milford Balanced Fund
The Fund’s objective is to provide capital growth after management and administration charges but before tax and before the performance fee over the minimum recommended investment timeframe of five years. It is a diversified fund that primarily invests in equities, with a significant allocation to fixed interest securities.
Aggressive
61% / 39%
1.06
1.28%
0.11%**
2.34%
3.59%
6.62%
15.03%
5.50%
7.22%
8.31%
Active
Yes
AMP Balanced Managed Fund
Aims to provide a well-diversified portfolio that has a balance of risk through holding growth assets and an allocation to lower-risk income assets.
Balanced
59.5% / 40.5%
0.80
0.80%
0% / 0%
2.44%
4.29%
8.72%
17.54%
–
–
–
Active
No
ANZ Investments OneAnswer Balanced Growth Fund
The Balanced Growth Fund invests mainly in growth assets (equities, listed property and listed infrastructure), with some exposure to income assets (cash and cash equivalents and fixed interest). The fund also has a small exposure to alternative assets.
Balanced
65% / 35%
0.99
1.03%
0% / 0%
2.76%
3.56%
7.94%
14.46%
3.05%
5.30%
6.73%
Active
No
Castle Point 5 Oceans Fund
The 5 Oceans Fund is a diversified fund that provides exposure to a range of growth and defensive assets both globally and locally. The fund can invest both in direct securities and selected managed funds.
The objective of the fund is to generate a positive return above cash with a focus on protecting investors capital.
Balanced
55% / 45%
1.31
1.09%
0.30% / 0.30%
1.17%
2.12%
4.97%
8.65%
3.10%
4.93%
–
Active
Yes
Foundation Series Balanced Fund
The Fund aims to generate long-run returns by investing in a diversified portfolio with a balance of income and growth assets. The Fund’s objective is to perform broadly in line with the return of its investment benchmark before fees and tax over the long-term.
The Fund’s investment benchmark is the weighted average return (before tax, fees and other expenses) of the asset class benchmark indices, which includes both New Zealand as well as international fixed interest and equity asset classes. The long-term returns from the Foundation Series Balanced Fund are likely to be lower and more stable than those of the Foundation Series Growth Fund.
Balanced
60% / 40%
0.37
0.37%
0.08% / 0.11%
3.16%
4.52%
9.11%
18.33%
4.94%
–
–
Active
Yes
Milford Conservative Fund
The Fund’s objective is to provide a moderate return and protect capital after management and administration charges but before tax over the minimum recommended investment timeframe of three years. It is a diversified fund that primarily invests in fixed interest securities, with a moderate allocation to equities.
Balanced
18% / 82%
0.85
0.95%
0.10%**
1.37%
2.00%
5.74%
11.02%
3.95%
3.64%
–
Active
Yes
Pathfinder Ethical Growth Fund
A highly diversified global portfolio that invests in companies meeting Pathfinder’s Ethical Investment guidelines. These guidelines focus on selecting companies benefitting our planet and people, and also excluding companies and industries that are harmful. The team at Pathfinder believes this approach will deliver both financial returns and better environmental and social outcomes. The Pathfinder Ethical Growth Fund has a portfolio with a higher exposure to growth assets and a lower exposure to income assets. Investments are spread across multiple asset types, geographies, companies and sectors to provide diversification. The investment strategy includes management of foreign currency exposure to New Zealand dollars.
Balanced
71.8% / 28.2%
1.33
1.30%
0% / 0%
3.86%
5.38%
8.43%
21.01%
4.93%
–
–
Active
Yes
Mercer Ethical Leaders Balanced Fund
The fund is a diversified portfolio with a slightly higher allocation to a mix of growth assets (e.g., shares and listed property) relative to a mix of income assets (e.g., cash and fixed income). The fund has been certified by the Responsible Investment Association of Australasia.
Balanced
60% / 40%
1.32
1.32%
0.12% / 0.12%
1.61%
3.52%
6.86%
15.40%
3.15%
4.89%
5.66%
Active
Yes
Fisher Funds Conservative Fund
The Fisher Funds Conservative Fund is a diversified portfolio that aims to provide moderate protection for your investment, while also providing a modest level of return over the short to medium term. It invests in mainly income assets (target 72.5%) with a small amount in growth assets (target 27.5%).
Conservative
27.5% / 72.5%
1.36
1.36%
0% / 0%
1.67%
2.22%
5.88%
10.44%
2.01%
2.59%
–
Active
Yes
Mercer Ethical Leaders Global Shares Fund
The fund invests in shares listed on international share markets managed within a sustainable approach. The fund is managed to specific ‘sustainable investment’ criteria which prohibits investments in certain companies or activities, and encourages investment in companies with strong environmental, social and governance characteristics. This fund has additional exclusions applied as described in our Sustainable Investment Policy and has been certified by the Responsible Investment Association of Australasia (RIAA).
Conservative
100% / 0%
1.53
1.53%
0.15% / 0.10%
4.13%
7.63%
12.67%
29.31%
9.30%
10.88%
9.10%
Active
No
Mercer Macquarie Global Income Opportunities Fund
The fund is a diversified portfolio of highly rated global fixed interest securities. At the total portfolio level the fund will have a shorter maturity than most traditional fixed interest funds, with an emphasis on minimising capital loss.
Conservative
0% / 100%
1.17
1.17%
0.13% / 0.13%
0.58%
0.90%
3.58%
6.83%
2.09%
1.68%
2.15%
Active
No
Milford Global Corporate Bond Fund
The Fund’s objective is to protect capital and generate a positive, NZD hedged return after management and administration charges but before tax that exceeds the relevant benchmark over the minimum recommended investment timeframe of three years.
Conservative
0% / 100%
0.85
0.85%
0.11%**
1.51%
0.87%
5.38%
8.98%
1.91%
2.14%
–
Active
No
Nikko AM Concentrated Equity Fund
The Nikko AM Concentrated Equity Fund aims to outperform the RBNZ Official Cash Rate plus 5.0% per annum over a rolling three year period before fees, expenses and taxes. This fund aims to provide investors with concentrated exposure to New Zealand and Australian equity markets from an actively managed investment portfolio. This fund has a high level of volatility.
Conservative
100% / 0%
1.15
1.15%
0.29% / 0.29%
1.42%
5.90%
8.70%
18.40%
2.38%
5.33%
9.68%
Active
No
Russell Investments Global Fixed Interest Fund
Russell Investments Global Fixed Interest Fund is a PIE Fund providing exposure to a global fixed interest portfolio managed actively on a multi-manager basis. The Fund’s underlying investment exposure comprises of a diversified range of fixed interest investments, including international government securities, government-related securities, corporate securities, asset-backed securities and hybrid securities in both developed and emerging markets around the globe.
Conservative
0% / 100%
0.59
0.59%
0.15% / 0.15%
1.23%
0.06%
4.14%
6.17%
−1.79%
0.01%
2.20%
Active
Yes
Harbour Income Fund
A diversified fund designed for investors who want to generate a steady and sustainable income across all market cycles, without sacrificing capital growth. It aims to exceed the Official Cash Rate plus 3.5% per annum (over rolling 3-year periods).
Conservative
32% / 68%
0.67
0.65%
0% / 0%
1.28%
3.52%
7.82%
13.20%
5.03%
5.43%
–
Active
No
AMP Growth Managed Fund
Aims to provide a well-diversified portfolio that aims to provide growth, primarily through holding growth assets diversified with a lower allocation to lower-risk income assets.
Growth
80.5% / 19.5%
0.80
0.80%
0% / 0%
3.10%
5.56%
10.19%
21.23%
–
–
–
Active
No
Fisher Funds Growth Fund
The Fisher Funds Growth Fund is a diversified portfolio that aims to grow your investment with more focus on capital growth over the long term. It invests in mainly growth assets.
Growth
81% / 19%
1.47
1.47%
0% / 0%
3.91%
5.56%
9.81%
20.39%
4.90%
6.98%
–
Active
Yes
Foundation Series Growth Fund
The Fund aims to generate long-run returns by investing in a diversified portfolio weighted towards growth assets but with some income asset exposure. The Fund’s objective is to perform broadly in line with the return of its investment benchmark before fees and tax over the long-term.
The Fund’s investment benchmark is the weighted average return (before tax, fees and other expenses) of the asset class benchmark indices, which includes both New Zealand as well as international fixed interest and equity asset classes. The long-term returns from the Foundation Series Growth Fund are likely to be higher and less stable than those of the Foundation Series Balanced Fund.
Growth
80% / 20%
0.37
0.37%
0.10% / 0.11%
3.86%
5.75%
10.68%
21.95%
6.59%
–
–
Active
Yes
Harbour Active Growth Fund
A diversified fund designed to target a return of the Official Cash Rate plus 5% over rolling five year periods. It is designed as a standalone diversified fund, and can also be mixed with other funds to add diversity to an investor’s overall portfolio. The Fund utilises high conviction investments managed by Harbour, complemented with global managers such as T. Rowe Price, Baillie Gifford and Western Asset Management. It has a target allocation of 70% to growth assets that is actively managed to respond to market conditions.
Growth
70% / 30%
1.05
0.99%
0% / 0%
2.67%
4.39%
8.25%
15.86%
0.45%
4.85%
–
Active
Yes
Mercer Ethical Leaders NZ Shares Fund
The fund is a diversified portfolio of predominantly New Zealand shares across a range of industries and sectors. The portfolio may also invest in Australian shares. The fund is managed to specific ‘sustainable investment’ criteria which prohibits investments in certain companies or activities, and encourages investment in companies with strong environmental, social and governance factors and also actively engages on key thematic engagements each year. This fund has additional exclusions applied as described in our Sustainable Investment Policy and has been certified by the Responsible Investment Association of Australasia (RIAA).
Growth
100% / 0%
0.91
0.91%
0.25% / 0.25%
3.67%
6.62%
12.93%
22.61%
1.29%
5.74%
10.67%
Active
No
Milford Australian Absolute Growth Fund
The Fund’s targets an absolute return with an annualised return objective of 5% above the New Zealand Official Cash Rate while seeking to protect capital after the base fund fee but before tax and before the performance fee, over rolling three year periods. The Fund has a minimum recommended investment timeframe of seven years.
It is a diversified fund that primarily invests in Australasian equities, complemented by selective exposure to international equities, fixed interest securities and cash.
Growth
82.5% / 17.5%
1.25
1.05%
0.11%**
1.71%
1.58%
0.55%
8.57%
4.52%
7.43%
–
Active
No
Mint New Zealand SRI Equity Fund
Mint’s New Zealand SRI Equity Fund is a single asset class Fund, which typically invests in New Zealand listed equities. Investors should expect returns and risk commensurate with the New Zealand share market. The Fund has been designed to meet specific responsible investment criteria, with the aim of building a portfolio where the holdings in aggregate, generate a better ESG score in our systems than the benchmark S&P/NZX50 Gross Index. The Fund has an investment objective of outperforming the S&P/NZX50 Gross Index by 2% per annum, before fees, over the medium to long-term.
Growth
95% / 5%
0.95
0.95%
0% / 0%
3.14%
6.40%
11.70%
16.23%
1.82%
4.52%
–
Active
No
Pathfinder Global Property Fund
Property stocks can behave differently to the wider stock market and can provide an inflation protection. Global property provides diversification – across countries, sectors, company sizes, sources of revenue and management styles. This Fund is designed to provide a liquid and currency-managed global listed property exposure, including an allocation to New Zealand.
Stocks are screened on environmental, social and governance (ESG) criteria.
Growth
100% / 0%
1.02
1.02%
0.05% / 0.05%
2.13%
4.19%
13.80%
21.93%
0.48%
−0.37%
–
Active
No
Risk Category
* Fees are the manager’s estimates of the total annual fund charge as outlined in the Product Disclosure Statement (PDS). Note that this figure includes GST and any performance-based fees where applicable. Transaction-based charges may also apply when you buy or sell a fund, which could include buy/sell spreads, entry/exit fees, or swing pricing adjustments. Please see the PDS for full details on the charges that can apply. Past performance is not a reliable indicator of future performance. Read each fund’s PDS for more information.
Use our Investment Balance Calculator to see your estimated end investment value
*The default annual return rate is 5.9%, which is the estimated annual return for a ‘Balanced’ investor type, according to Sorted.
Results
Starting amount: $0
Contribution total: $0.00
Return total: $0.00
Final Amount in 0 years: $0
*‘Starting Amount ($)‘ is the current combined total dollar value of your savings and investments. *‘Estimated Annual Return Rate (%)’ is the average annual return you expect to receive. *The ‘Estimated Annual Return Rate (%)’ that you input into the calculator represent gross figures, and do not take into account the effects of any fees, taxes or inflation. You are also not guaranteed to achieve this Estimated Annual Return Rate each year nor in any one year. *The ‘Final Amount’ is not guaranteed. It is an estimated projection to help you with decisions about your fund choice, the risk associated and how much you should contribute. This Final Amount does not take into account the effects of any fees, taxes or inflation and assumes consistent contributions and a consistent annual rate of return.
The benefits of diversified funds…
Easy access to a diversified pool of investments that are aligned to a wide range of investor needs. This allows a more transparent and guided investment experience, that is suitable for retail investors.
Investments are spread across asset classes (e.g. shares, property, bonds, and cash) based on the target growth/income asset exposure ratio, according to the fund’s name. For example, a diversified fund with ‘Balanced’ in the name will have 40% – 65% exposure to growth assets and the remainder allocated to income assets.
They offer other types of diversification, like sector diversification (e.g. technology, healthcare, infrastructure), regional diversification (e.g. local and international assets), currency diversification etc.
Join InvestNow to invest, and make your money work hard for you
Managed Fund, KiwiSaver & Term Deposit options through one online account.
