Global Macro

Diversification & long-term capital appreciation

Macro investing enables investors to own a wide range of non-correlated asset classes, which have the potential to rise in value over time. Over longer periods of time, investors are likely to experience a wide variety of challenges. In recent times, these have included COVID, inflation, geopolitical tension, regional conflicts, climate change and political change. Many changes negatively impact share market returns, but result in capital gains for other asset types such as bonds and gold.

The Global Macro Portfolio owns a range of asset types, with the goal of ensuring that, irrespective of the state of the world, there are assets in the Portfolio which should be able to generate attractive capital gains over time. These asset types may include Gold, Silver, Government Bonds, Currencies (including Crypto), Credit Indices as well as local and international shares.

Access assets & instruments used by professionals

Assets like Gold, Silver, Government Bonds and Credit Index exposure can be difficult to purchase and expensive to hold directly. They are usually only available in a professionally-managed portfolio. The Global Macro Portfolio enables long-term private investors to own many of the same asset types that large, long-term professionally-managed investment companies own.

The Portfolio may also hold emerging asset types, such as Bitcoin and Ethereum which may come with heightened levels of volatility, but over time have the potential to appreciate significantly more in value than established asset types like shares and bonds. 

Highly liquid & convenient

Many of the asset types held are not easily accessible for private individuals, and may be difficult to purchase or sell (to fund deposits or redemptions) if held by an individual. By accessing these asset types through a professionally-managed PIE portfolio, investors can deposit or withdraw in a highly liquid manner small or large amounts whenever they wish. These amounts will be taken from (or applied to) all the asset types in the Portfolio. This ensures continuous asset exposure with high levels of liquidity and convenience.

Since inception (31 October 2008) to 30 September 2026. Returns are stated after full Portfolio fees and expenses including performance fees (where applicable), but before any advisory fees or investor tax. No management fee rebates have been applied to these numbers, see PDS for management fee rebate criteria. Past performance is not necessarily an indication of future returns. Maximum decline represents the largest decline in value in the previous 12 months. Volatility 5 Years is the annualised standard deviation calculated from weekly returns of the Portfolio over the 5 years ending 30 September 2026. 

The graph displays the change in value of a notional investment of $100 after full fees and tax (assuming a tax rate of 28%) but before any advisory fees (if applicable). No management fee rebates have been applied in the graphs of individual Portfolio performance. In the graph above, quarter ends are full standard calendar year quarters except the first quarter from inception (31 October 2008) which is not a full quarter.

†  Share market volatility adjusted weight as per NZ Funds’ risk management model. 
^  Universa is designed to reduce the degree to which the Portfolio drops in a sudden market decline of 
20% or more in the S&P 500. The figure represents the estimated percentage of NAV with this downside mitigation.
^^    JPY/USD assumed beta -0.5×.

The market index for the Portfolio is the MSCI All Countries World Daily TR Net Local Currency Index. In addition to the market index, the performance of certain asset classes held by the Portfolio can be illustrated by the following indices: the Bloomberg Commodity Total Return Index and the S&P U.S. Treasury Bond Current 10-Year Return Index. These index returns are also stated with no deduction for expenses or performance fees and after investor tax at 28%. You cannot invest in these indices and these indices do not take Environmental, Social and Governance (ESG) factors into account.

NZ Funds takes ESG criteria into account in its investment decisions. This impacts on our investment choices. Our ESG criteria are set out in NZ Funds Active Series SIPO. 

NZ Funds is an active manager so the securities listed above may not be held in the future. Past performance is not an indicator of future returns. A full list of securities held by the Strategy is available through NZ Funds Digital Wallet. Rounding may affect totals.

Further information is contained in the Portfolio Profiles and in the NZ Funds Advised Portfolio Service Product Disclosure Statement (PDS).