Amova Corporate Bond Fund vs Simplicity NZ Bond Fund

The most material structural difference between these two funds is cost. The Amova Corporate Bond Fund discloses an annual fund charge of 0.70%, while the Simplicity NZ Bond Fund discloses 0.10% — a seven-fold difference that compounds meaningfully over time in a category where gross returns are inherently modest.

Despite the lower fee, Simplicity carries a higher risk indicator (4 versus Amova's 3), which reflects differences in portfolio construction rather than a simple trade-off. Simplicity's five largest holdings are dominated by New Zealand government bonds and a supranational issuer (IBRD), with individual weights ranging from 4.59% to 6.89%. Amova's top holdings are more dispersed (2.46%–3.08%) and skew toward semi-government and corporate issuers — Housing NZ, LGFA, and bank subordinated or covered bonds — consistent with its "Corporate Bond" mandate and explaining the higher credit-risk profile that likely anchors the lower risk rating.

On five-year returns, Amova discloses 1.63% per annum versus Simplicity's 0.53%, though these figures are after fees and before tax, and reflect different interest-rate and credit environments across the measurement window. Fund size is comparable: Amova at approximately NZ$558 million, Simplicity at approximately NZ$674 million. Both funds hold negligible growth assets (0.13% and 0.07% respectively), confirming their income-oriented character.

Readers should verify all figures against each fund's current Product Disclosure Statement and latest Quarterly Fund Update on FMA Disclose before relying on this summary.