What can go wrong with NZ australasian equities funds

FMA standardised risk indicator across the 57 funds in our coverage

Every NZ managed fund on the FMA Disclose register publishes a standardised risk indicator on a 1 (lowest) to 7 (highest) scale, computed from recent return volatility. The table below shows how the australasian equities funds in our coverage distribute across the scale.

5-year return range across the class

Realised 5-year annualised returns across the 48 funds in this category for which Sorted Smart Investor reports a 5-year history. Past returns do not predict future returns; this range shows what funds in this asset class have actually delivered over the most recent 5-year window.

Lowest realised 5y

0.0%

Median realised 5y

1.5%

Highest realised 5y

14.3%

What specifically can go wrong with australasian equities funds

Asset-class-specific risks not captured by the single FMA risk-indicator number. These apply across the category — each individual fund\'s PDS discloses fund-specific risks on top.

1. 1

   Index concentration in the NZX top 20. Fisher & Paykel Healthcare, a2 Milk, Auckland Airport, Mainfreight and Spark together typically dominate any NZ50 tracker — meaning the index, and any fund that holds it, can move sharply on news about a handful of names.

2. 2

   Sector concentration in utilities, healthcare and consumer staples. The NZX has limited representation in technology, financials and energy compared to global indices. A NZ-equity fund that loses access to a major sector through a delisting (e.g. Vector's 2024 corporate restructure) sees structural composition change.

3. 3

   Currency exposure on the Australian portion. Most Trans-Tasman funds hold their ASX exposure unhedged. AUD/NZD volatility adds to total return volatility — the NZD strengthening against the AUD by 5% erases roughly 1.5–2% of fund return on a typical 30–40% AU weighting.

4. 4

   Liquidity in smaller names during stress. NZ small- and mid-cap shares can have very thin trading volumes. In market dislocations, fund managers may face wider bid-ask spreads when adjusting positions.

5. 5

   Imputation-credit treatment under PIE. The PIE wrapper passes imputation credits through, but valuing them at the right tax rate depends on each holder's PIR. The headline gross dividend yield does not always equal the after-tax cash you receive.

Questions people ask about australasian equities funds

Questions that recur in search results for this asset class, answered with reference to FMA Disclose register definitions and asset-class structural dynamics. Not personal financial advice.

57 australasian equities funds, ordered by FMA risk indicator

Highest-risk funds in the class first; ties broken by annual fund charge ascending. Each fund\'s page surfaces its full PDS, holdings and risk-indicator history.

Related

Source: FMA Disclose register (risk indicator + 5-year return). Methodology: /methodology.