CINSF Conservative Fund
To produce rates of return over time that are more stable than the Balanced and Growth Options, and are in excess of inflation by a modest amount. This is done by investing a small percentage (30%) of the fund in growth assets (world stock markets) while keeping the probability of a negative return at low levels.
The fund is composed of a “Reference Portfolio” which is a passive cheapest and easiest version of the design benchmark of 30/70 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||15||10 – 20||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||15||10 – 20||
SuperLife Total World Fund (Unhedged) – NZ PIE Fund; invests in Vanguard Total World Stock ETF
|Total Growth Assets||30||25 – 35|
|Defensive Assets / Global Fixed Interest (Hedged into NZD)||70||52 – 60||
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||70||65 – 75|
|PIE = Portfolio Investment Entity, a New Zealand collective investment vehicle that enables investors to be taxed at their marginal rate, which in 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”