CINSF Balanced Fund (Default Option)

Investment Objectives

To produce rates of return over time that are sustainably higher than those of the Conservative option, but less volatile than the Growth Option, returns which exceed inflation by a realistic amount.  This is done by investing a significant percentage (60%) of the fund in growth assets (world stock markets) while keeping the probability of a negative return at moderate levels.

The fund is composed of a “Reference Portfolio” which is a passive cheapest and easiest version of the design benchmark of 60/40 Growth/Defensive.  The return of the Reference Portfolio is therefore the after, costs, fees and trading expense outcome of the most direct expression of the design benchmark.  

At this stage, the fund has not invested in a “Value Add” portfolio which will be entered into when opportunities to out-perform the Reference Portfolio have been identified.  

Total Fund Return is the Investment Fund return net of investment manager fees

Benchmark asset allocation and underlying investment funds

Asset Class Benchmark % Rebalancing Range % Underlying Investment Product
Growth Assets / Equities (Unhedged), open exposure to global currency risk 30 25 – 35 SuperLife Total World Fund (Unhedged) – NZ PIE Fund*; invests in Vanguard Total World Stock ETF (Unhedged)
Growth Assets / Equities (Hedged), Removes the currency exposure and experiences underlying economic changes only in NZ$ terms 30 25 – 35

SuperLife Total World Fund (Unhedged) – NZ PIE Fund; invests in Vanguard Total World Stock ETF (Hedged into NZ$) 

Total Growth Assets 60 55 – 65  
Defensive Assets / Global Fixed Interest (Hedged into NZD) 40 35 – 45

SuperLife Global Aggregate Bond Fund (Hedged) – NZ PIE Fund; Invests fully in the (Blackrock) iShares Core Global Aggregate Bond UCITS ETF

Total Defensive / Income Assets 40 35 – 45  
*PIE = Portfolio Investment Entity, a New Zealand collective investment vehicle that enables investors to be taxed at their marginal rate, which I the case of CINSF is set to 0%, as a foreign exempt investor

* the benchmark indices that the ETFs track (as passive index-tracking vehicles) are the “FTSE ALL CAP INDEX” for the two equity ETFS (hedged and unhedged) ,and the “BLOOMBERG GLOBAL AGGREGATE INDEX 100% HEDGED INTO NZ DOLLARS”

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