KiwiSaver Balanced Fund

A balanced exposure to shares & bonds

Over long periods of time shares have been one of the top performing asset types in the world,
appreciating in real terms by around 7% per annum before fees and tax. Long term, they have offered investors the opportunity to, on average, double the value of their investment every 7 to 10 years (before fees, tax and expenses). However, shares come with volatility.

The Fund holds an equal allocation to long-term government bonds. The return from government bonds do not typically rise and fall at the same time as the share market, so owning both shares and government bonds can even out some of the volatility in an investor’s KiwiSaver balance. This makes NZ Funds’ Balanced Fund a useful entry level option for first time KiwiSaver Members.

Future contracts minimse costs to Members

The Fund uses a combination of futures contracts, which passively replicate the returns of global share markets, and directly held New Zealand shares. New Zealand and international bonds are directly held. By using futures contracts, seeking to replicate broad market returns and not making active investment decisions, the costs of managing this Fund are kept to a minimum.

Ability to switch to NZ Funds actively managed Strategies

Once Members have built up their confidence, they may wish to switch to one of NZ Funds KiwiSaverScheme’s actively managed Strategies or use our Life Cycle Option. Life Cycle enables members to access three different Strategies and have their funds automatically allocated between the Strategies according to a Member’s age. Life Cycle is designed to optimise Members’ KiwiSaver balances for retirement and is used by over 90% of NZ Funds KiwiSaver Scheme Members.

Since inception (31 August 2021) to 30 September 2026. Returns are stated after zero management fees and expenses, but before any advisory fees or investor tax. 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 using weekly returns of the Strategy over the 5 years ending 30 September 2026. 

The graph displays the change in value of a notional investment of $100 after zero management fees, expenses and tax (assuming a tax rate of 28%) but before any advisory fees (if applicable). In the graph above, month-end returns are shown from inception date (31 August 2021).

The market index for the Strategy is made up of the MSCI All Countries World Daily TR Net Local Currency (25%), the S&P/ASX 200 Total Return Index (12.5%), the S&P/NZX 10 Portfolio Index Gross (12.5%), the Bloomberg Global Aggregate Index (37.5%) and the S&P/NZX NZ Government Bond Total Return Index (12.5%). 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 KiwiSaver Scheme SIPO. 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 Fund is available through NZ Funds Digital Wallet. Rounding may affect totals.

The NZ Funds KiwiSaver Scheme, which incorporates the Balanced Fund, is issued by New Zealand Funds Management Limited. Further information is contained in the Strategy Profiles and in the NZ Funds KiwiSaver Scheme Product Disclosure Statement.