Fund-vs-fund · Diversified
Clarity Diversified Growth Fund vs Foundation Series High Growth Fund
Both are Diversified funds available to NZ retail investors. Numbers below are sourced from the FMA Disclose register via Sorted Smart Investor and reflect the latest published quarterly fund updates.
Why these two differ
The most material structural difference between these two funds is the annual fund charge: the Foundation Series High Growth Fund discloses a fee of 0.37% per annum, while the Clarity Diversified Growth Fund charges 1.16% — a gap of 0.79 percentage points that, compounded over time, can meaningfully affect net returns regardless of gross performance. Both funds sit in the Diversified category and share an identical growth assets allocation of 98.31%, so the high equity tilt is not a distinguishing factor. Where they diverge is on risk indicator: Foundation Series is rated 5 (higher volatility) versus Clarity's rating of 4, despite near-identical growth weightings — investors should read each fund's PDS to understand how that difference is derived. On returns, Clarity discloses a five-year return of 7.92% per annum; Foundation Series provides no five-year figure in this snapshot, likely because the fund lacks sufficient history. Fund size is comparable — roughly NZD 10.0 million versus NZD 8.8 million respectively. The construction philosophies differ sharply: Foundation Series holds three index-linked or ESG-screened ETFs covering US, international, and NZ equities, concentrating 98%+ across just those vehicles; Clarity takes an actively managed multi-holding approach, with its largest disclosed positions being two share classes of the Capital Group New Perspective Fund alongside individual equities such as Meridian Energy and BHP. Neither fund's data here discloses underlying currency hedging policy or tax treatment in detail. Always verify current fees, returns, and holdings against each fund's product disclosure statement and latest quarterly fund update on FMA Disclose before relying on any of this information.
Comparison generated 2026-07-05 from each fund's FMA Disclose QFU facts as at that date. If the underlying facts change, this narrative is withheld until it is regenerated — the tables on this page always reflect the current data.
What's different at a glance
- Foundation Series High Growth Fund charges 0.79% lower in annual fund charges (0.37% vs 1.16%).
- Both are New Zealand PIE funds — investor tax is capped at the Prescribed Investor Rate (PIR), maximum 28%.
Where each fund sits in its cohort
Percentile rank vs all 67 diversified funds we've matched on Sorted Smart Investor. Mechanical only — no opinion, no forward-looking view.
Annual fund charge
Lower is better
Clarity
1.16%
Upper half of cohort
Foundation Series
0.37%
Lowest 16% of cohort
5-year return p.a.
Past performance — not a predictor
Clarity
7.92%
Top 1% over 5 years
Foundation Series
—
—
Fund size
Larger = more stable, lower close-risk
Clarity
NZ$9m
Smallest 16% in cohort
Foundation Series
NZ$10m
Smallest 19% in cohort
| Metric | Clarity | Foundation Series | Lower / higher is |
|---|---|---|---|
| Annual fund charge | 1.16% | 0.37% | Lower is better |
| Risk indicator (1–7) | 4 | 5 | Higher = more volatility |
| 5-year return p.a. | 7.92% | — | Higher is better (past not future) |
| Fund size | NZ$9m | NZ$10m | Larger = more stable, lower close-risk |
| Growth / income split | 98% / 2% | 98% / 2% | More growth = higher long-run return + volatility |
| NZ tax structure | PIE (PIR-capped) | PIE (PIR-capped) | PIE = simpler. FIF = annual return. |
| Currency hedging | — | — | Hedged smooths NZD/foreign FX moves at a small cost. |
| Responsible investment screening | No | No | Specific exclusions live in each fund's SIPO. |
| Available via | Direct | Direct | Platforms accepting retail subscriptions. |
Portfolio overlap
How many top-10 positions both funds hold, and at what weight. Computed from each fund's most recently disclosed top-10 holdings — exact-name matched (Microsoft Corp. = Microsoft Corporation), with a Cash / Cash & Equivalents collapse rule.
Matching holdings
1
of each fund's top 10
Clarity weight in shared
7.7%
of Clarity Diversified Growth Fund top 10 is shared
Foundation Series weight in shared
2.6%
of Foundation Series High Growth Fund top 10 is shared
| Holding | Clarity | Foundation Series |
|---|---|---|
| $ NZD Cash at Bank NZ | 7.65% | 2.65% |
"Min weight" = the smaller of the two weights — a conservative read of how much exposure you'd have to that position if you held both funds.
What each fund says it does
Clarity
Clarity Diversified Growth Fund
The Fund will provide actively managed exposure to New Zealand, Australian and international equities, and aims to generate a better return than the benchmark over the medium to long term. The Fund primarily invests in managed funds (including other Clarity funds) to achieve a well-diversified portfolio of assets.Full Clarity Clarity Diversified Growth Fund profile →
Foundation Series
Foundation Series High Growth Fund
Aims for high long-run returns by investing in a diversified portfolio of predominantly growth assets but with a small amount of income asset exposure. The Fund incorporates certain responsible investment considerations and is exposed to investment strategies that seek to limit exposure to companies involved in specific business practices.Full Foundation Series Foundation Series High Growth Fund profile →
Documents
Crawled directly from each manager's website. How we record provenance →
Clarity
Common questions
What's the difference between the Clarity Diversified Growth Fund and the Foundation Series High Growth Fund?
Which fund has lower fees, Clarity Diversified Growth Fund or Foundation Series High Growth Fund?
Are both funds PIE-taxed in NZ?
Where can I read the official documents for these funds?
