Wealth Builder
Wealth Builder Growth Strategy
The objective of the Growth Strategy is to grow your investment over the long term through active management.
The Growth Strategy is anticipated to mainly own and trade New Zealand, Australian and international shares and/or hedge funds and other authorised asset classes over the minimum suggested investment timeframe.
Life Cycle allocates 85% of a member's funds to this Strategy until the member reaches age 55, from when their allocation will gradually decrease to 39% by age 65.
More Information
Long-term capital appreciation
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).
Global shares do not always rise and fall at the same time as New Zealand shares. Owning both global shares and New Zealand and Australian shares can even out some of the volatility in a portfolio, as can owning global macro assets like long-term government bonds, gold (and other commodities) and emerging asset classes, like crypto.
Professionally selected companies
NZ Funds’ Growth Strategy offers investors a professionally selected portfolio of local and international companies. NZ Funds works with world class investors Fisher Investments (based in California) and MFS (based in Boston) to research and buy a portfolio of world class companies for investors.
The Strategy also holds index futures to closely match the market returns of the global share market index. This ensures investors benefit from owning both actively chosen companies and the broader share market. By using index tracking futures, the Strategy may be more than 100% invested (for example, 120% invested). This amplifies the opportunity for the Strategy to generate returns over time but may also increases the Strategy’s risk.
Currency hedging & downside mitigation
Investing in Australian and international shares can mean investors are exposed to currency fluctuations. NZ Funds can remove this uncertainty by actively hedging investments back into New Zealand dollars when the manager deems it appropriate to do so.
The Strategy also offers investors the potential for downside mitigation during share market crashes through an actively managed portfolio of options managed by Universa (USA). The options are designed to reduce the degree to which the portfolio drops in a significant market decline, which is defined as a drop of more than 20% in a single month.
Returns
Since inception (27 February 2020) to 30 September 2026
| Annualised | Cumulative | |
|---|---|---|
| Year to date | 0.36% | 0.36% |
| 1 Month | -0.37% | -0.37% |
| 3 Months | 3.65% | 3.65% |
| 6 Months | 10.76% | 10.76% |
| 1 Year | 0.16% | 0.16% |
| 2 Years | 8.63% | 18.01% |
| 3 Years | 16.00% | 56.09% |
| 5 years | 1.23% | 6.31% |
| Since Inception | 7.77% | 63.82% |
| Maximum Decline 12 Months | -13.61% | -13.61% |
| Volatility 5 Years | 19.13% | 19.13% |
Notes
Since inception (27 February 2020) to 30 September 2026. Returns are stated after full Strategy 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 Strategy over the 5 years ending 30 September 2026.
Performance
Since inception (27 February 2020) to 30 September 2026
Notes
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 Strategy performance. In the graph above, quarter ends are full standard calendar year quarters except the first quarter from inception (27 February 2020) which is not a full quarter.
Holdings at 30 September 2026
| Asset Allocation | Country | Sector | Exposure |
|---|---|---|---|
| NZ and Australian Shares - Top 5 | 27.1% | ||
| - Mercury NZ Ltd New Zealand Utilities 1.8% | |||
| - Rio Tinto Ltd Australia Basic Resources 1.7% | |||
| - Port of Tauranga Ltd New Zealand Industrial 1.6% | |||
| - Heartland Group Holdings Ltd New Zealand Banks 1.5% | |||
| - Mainfreight Ltd New Zealand Industrial 1.5% | |||
| Global Shares - Top 5 | 43.9% | ||
| - NVIDIA Corp USA Technology 3.0% | |||
| - Apple Inc USA Technology 2.7% | |||
| - DiDi Global Inc China Consumer 2.1% | |||
| - Microsoft Corp USA Technology 2.0% | |||
| - Amazon.com Inc USA Retail 1.4% | |||
| Index Futures | 50.6% | ||
| - S&P500 USA Index Futures 16.3% | |||
| - USA AI Total Return basket USA Index Futures 11.1% | |||
| - China AI Total Return basket China Index Futures 7.5% | |||
| - ASX 200 Australia Index Futures 5.3% | |||
| - EURO STOXX 50 Europe Index Futures 5.0% | |||
| - TOPIX Japan Index Futures 1.8% | |||
| - USA AI Manufacturing Total Return basket USA Index Futures 1.3% | |||
| - MSCI Emerging Market China Index Futures 0.9% | |||
| - FTSE 100 UK Index Futures 0.8% | |||
| - HSCEI Hong Kong Index Futures 0.6% | |||
| Share Exposure | 121.7% | ||
| Commodities USA Commodities 17.1% | |||
| Cryptocurrency USA Cryptocurrency 12.8% | |||
| Other Exposure | 29.9% | ||
| Gross Exposure | 155.0% | ||
| Less Downside Mitigation | 31.7% | ||
| Universa^ 16.1% | |||
| Government Bond Futures†USA Government Bonds 3.5% | |||
| JPY/USD^^ 12.1% | |||
| Estimated Net Exposure | 119.9% |
† Share market volatility adjusted weight as per NZ Funds’ risk management model.
^ Universa is designed to reduce the degree to which the Strategy 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×.
Notes
The market index for the Strategy annual return is based on a composite index calculated using the market indices and weightings set out in the Statement of Investment Policy and Objectives (SIPO): MSCI All Countries World Daily TR Net Local Currency (70%), S&P/NZX 50 Portfolio Index Gross (20%), S&P/ASX 200 Total Return Index (10%). 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 Wealth Builder 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.
Overview
Further information
New Zealand Funds Management Limited is the issuer of the NZ Funds Wealth Builder Income Strategy. Further information is contained in the Strategy Profiles and in the NZ Funds Wealth Builder Product Disclosure Statement.