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?
Foundation Series US 500 Fund
The Fund aims for high long-run returns by investing in an Exchange-Traded Fund (‘ETF’) that invests in shares of the largest companies listed on stock markets in the United States. 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 Morningstar US Target Market Exposure TR NZD Index.
Aggressive
100% / 0%
0.03
0.03%
0.50% / 0.50%*
−6.59%
−5.30%
10.14%
14.44%
–
–
–
Passive
Yes
Milford Aggressive Fund
The Fund’s objective is to maximise capital growth after the base fund fee but before tax and before any indirect performance fee, over the minimum recommended investment timeframe of ten years. It primarily invests in international equities, with a moderate allocation to Australasian equities.
Aggressive
95% / 5%
1.15
1.15%
0.09%**
−4.74%
−2.31%
0.47%
3.54%
7.30%
–
–
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%
−2.48%
−1.70%
1.71%
6.24%
–
–
–
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%
−2.36%
−1.62%
−0.55%
2.98%
2.73%
7.33%
5.87%
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%
−0.38%
1.22%
2.88%
5.57%
3.12%
6.10%
–
Active
Yes
Foundation Series Global ESG Fund
The Fund aims for high long-run returns by investing in Exchange-Traded Funds (‘ETFs’) that invests in shares of large, mid-sized and small companies listed on international stock markets. The Fund incorporates certain responsible investment considerations and is exposed to investment strategies that seek to exclude companies involved in particular business practices. 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 a composite index consisting of 67% FTSE USA All Cap Choice TR NZD Index and 33% FTSE Global All Cap ex USA Choice TR NZD Index.
Balanced
100% / 0%
0.10
0.10%
0.50% / 0.50%*
-3.53%
–
–
–
–
–
–
Passive
No
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.
Balanced
61% / 39%
1.06
1.28%
0.11%**
−1.23%
0.43%
2.72%
6.40%
5.82%
9.32%
7.62%
Active
Yes
Octagon New Zealand Equities
The fund aims to achieve positive long-term returns by investing mostly in New Zealand shares, and can invest in Australian listed shares, where the company has meaningful operations in New Zealand. These investments typically have high levels of movement up and down in value.
Balanced
95% / 5%
1.17
1.17%
0% / 0%
−2.36%
−6.46%
−1.49%
−0.46%
0.50%
6.26%
8.82%
Active
No
Mercer Core Hedged Global Shares Fund
The fund invests in shares listed on share markets predominately in developed economies, and is fully hedged to the New Zealand dollar. The portfolio uses multiple managers and is diversified by region, manager and investment approaches.
Balanced
100% / 0%
1.74
1.74%
0.17% / 0.17%
−3.64%
−1.45%
−5.82%
2.05%
5.97%
14.44%
7.70%
Active
No
Fisher Funds Global Fund
The Global Fund aims to achieve capital growth over the long term by investing in international shares only.
Conservative
100% / 0%
1.65
1.65%
0% / 0%
−5.00%
−2.69%
2.52%
3.58%
7.27%
12.84%
8.16%
Active
No
Mercer Emerging Markets Shares Fund
The fund invests in shares listed on share markets in emerging economies. The portfolio is managed using a single manager.
Conservative
100% / 0%
2.07
2.07%
0.25% / 0.25%
−1.25%
2.84%
5.55%
12.69%
5.65%
7.61%
5.26%
Active
No
Mercer Income Generator Fund
The fund aims to provide a gross fixed monthly income in excess of bank deposit rates, along with a positive return on capital over the long term. To achieve this, the fund invests in a diversified mix of growth and defensive assets, with a focus on reliable income generation.
Conservative
40% / 60%
0.95
1.00%
0.12% / 0.09%
−1.14%
−1.75%
−0.46%
2.50%
2.26%
5.73%
5.05%
Active
No
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.
Conservative
18% / 82%
0.85
0.95%
0.10%**
−0.25%
1.12%
2.23%
7.16%
5.07%
4.75%
–
Active
Yes
Mint Diversified Income Fund
This Fund offers diversification by investing across a number of asset classes both in New Zealand and internationally. These include cash, fixed interest, listed property, and equites. The objective of the Fund is to deliver a total return (through a combination of income and capital growth) in excess of the Consumers Price Index (CPI) by 3% per annum, before fees, over the medium to long-term. The relevant market index for the Fund is a composite index derived from the underlying asset classes of the Fund.
Conservative
30% / 70%
0.98
0.95%
0% / 0%
−1.79%
−0.76%
0.85%
5.57%
3.40%
3.96%
3.88%
Active
Yes
QuayStreet NZ Equity Fund
Primarily invests in shares from the New Zealand market. The objective is to provide a level of return above the Fund’s benchmark over the long term.
Conservative
100% / 0%
1.28
1.27%
0% / 0%
−2.91%
−6.57%
−2.30%
0.37%
0.92%
5.15%
8.79%
Active
No
Harbour Australasian Equity Fund
An actively managed growth fund, providing exposure to Australasian listed equities (usually 25 to 45 at a time). This Fund is designed to provide long-term capital growth through investing in New Zealand and Australian stocks with strong growth potential. It aims to outperform the local equity market.
Conservative
98% / 2%
1.10
1.11%
0% / 0%
−3.84%
−7.75%
−3.04%
3.39%
0.73%
6.86%
9.09%
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%
−3.25%
−2.62%
2.06%
6.59%
–
–
–
Active
No
Fisher Funds Income Fund
The Income Fund aims to preserve your capital while generating positive, better than bank returns. We do this by actively managing a hand-picked portfolio of cash and fixed interest securities from around the world.
Growth
0% / 100%
1.01
1.01%
0% / 0%
0.39%
1.20%
2.48%
7.90%
5.15%
3.14%
3.28%
Active
No
Foundation Series Growth Fund
The Fund aims for high 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%
−3.51%
−2.92%
2.28%
6.75%
6.75%
–
–
Active
Yes
Foundation Series US Dividend Equity Fund
The Fund aims for high long-run returns by investing in an Exchange-Traded Fund (‘ETF’) that invests in high dividend yielding shares issued by companies in the United States that have a record of consistently paying dividends. 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 Dow Jones U.S. Dividend 100 Index (NZD) TR.
Growth
100% / 0%
0.06
0.06%
0.50% / 0.50%*
0.30%
–
–
–
–
–
–
Passive
No
Mercer Responsible 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).
Growth
100% / 0%
1.53
1.53%
0.15% / 0.10%
−4.98%
−4.21%
0.64%
5.92%
8.61%
14.39%
8.06%
Active
No
Milford Active Growth Fund
The Fund’s objective is to provide annual returns of 10% after the base fund fee but before tax and before the performance fee, over the minimum recommended investment timeframe of seven years. It is a diversified fund that primarily invests in equities, with a moderate allocation to fixed interest securities.
Growth
78% / 22%
1.20
1.87%
0.10%**
−2.55%
0.29%
2.77%
6.60%
7.58%
12.47%
9.68%
Active
Yes
Mint Diversified Growth Fund
This Fund offers a diversified portfolio and aims to provide capital growth over the long-term. The Fund invests primarily in New Zealand and international equities, but will also hold cash and fixed interest securities. The objective of the Fund is to deliver returns in excess of the Consumers Price Index (CPI) by 4.5% per annum, before fees, over the medium to long-term. The relevant market index for the Fund is a composite index derived from the underlying asset classes of the Fund.
Growth
80% / 20%
1.21
1.18%
0% / 0%
−5.34%
−2.81%
−1.30%
2.68%
3.21%
9.59%
–
Active
Yes
Pathfinder Ethical Trans-Tasman Fund
The Fund invests directly in Australasian equities that satisfy Pathfinder’s ethical investment criteria. The fund is an actively managed, high conviction portfolio of Australian and New Zealand stocks. Investments are chosen based on a combination of top-down macroeconomic views and bottom-up stock specific selection factors. The Portfolio will hold 10-40 positions at a given time with the ability to go to cash to protect against down-side risk. The fund is benchmark unaware and returns may deviate significantly from the market index.
Growth
100% / 0%
1.02
1.02%
0% / 0%
−4.50%
−9.32%
−6.63%
2.91%
1.82%
9.11%
–
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.
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