Fund-vs-fund · Diversified
Foundation Series Growth Fund vs NZ Funds Wealth Builder - Growth Strategy
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 their fee level relative to delivered returns. The Foundation Series Growth Fund charges an annual fund charge of 0.38%, against a five-year average annual return of 6.31%. The NZ Funds Wealth Builder – Growth Strategy charges 2.14% annually — more than five times higher — yet its disclosed five-year average annual return stands at 0.96%. Both figures are drawn from each fund's latest Quarterly Fund Update on FMA Disclose.
Risk profile also diverges significantly. Foundation Series Growth sits at risk indicator 4 out of 7, with 78.34% in growth assets, spread across ESG-screened passive ETFs — predominantly Vanguard and iShares vehicles — plus a Harbour NZ equities fund. NZ Funds Wealth Builder carries a risk indicator of 6 out of 7 and allocates 98.31% to growth assets, with its top disclosed holdings being Goldman Sachs futures contracts and OTC derivatives, suggesting an actively managed, derivatives-heavy strategy quite different in character from the ETF-of-funds construction used by Foundation Series.
Fund size is comparable — approximately $62.4 million versus $58.2 million — so neither fund is materially larger than the other. Both are categorised as Diversified funds.
Foundation Series Growth holds no derivatives exposure in its top five holdings; NZ Funds Wealth Builder's two largest positions are derivatives instruments, which is a structural distinction investors should weigh carefully alongside the risk indicator difference.
Always verify all figures against the current Product Disclosure Statement and latest Quarterly Fund Update on FMA Disclose before relying on any of this information.
Cached comparison generated 2026-05-21 from each fund's latest FMA Disclose QFU. Regenerated when the underlying facts change.
What's different at a glance
- Foundation Series Growth Fund charges 1.76% lower in annual fund charges (0.38% vs 2.14%).
- 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
Foundation Series
0.38%
Lowest 17% of cohort
NZ Funds
2.14%
Highest 1% of cohort
5-year return p.a.
Past performance — not a predictor
Foundation Series
6.31%
Top 15% over 5 years
NZ Funds
0.96%
Bottom 8% over 5 years
Fund size
Larger = more stable, lower close-risk
Foundation Series
NZ$62m
Upper half by size
NZ Funds
NZ$58m
Upper half by size
| Metric | Foundation Series | NZ Funds | Lower / higher is |
|---|---|---|---|
| Annual fund charge | 0.38% | 2.14% | Lower is better |
| Risk indicator (1–7) | 4 | 6 | Higher = more volatility |
| 5-year return p.a. | 6.31% | 0.96% | Higher is better (past not future) |
| Fund size | NZ$62m | NZ$58m | Larger = more stable, lower close-risk |
| Growth / income split | 78% / 22% | 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 | InvestNow | 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
2
of each fund's top 10
Foundation Series weight in shared
2.2%
of Foundation Series Growth Fund top 10 is shared
NZ Funds weight in shared
9.4%
of NZ Funds Wealth Builder - Growth Strategy top 10 is shared
| Holding | Foundation Series | NZ Funds |
|---|---|---|
 Mercer Macquarie NZ Cash Fund NZ | 1.62% | 4.69% |
| $ Cash at Bank (BNZ) NZ | 0.60% | 4.69% |
"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
Foundation Series
Foundation Series Growth Fund
Aims for high long-run returns by investing in a diversified portfolio weighted towards growth assets but with some 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 Growth Fund profile →
NZ Funds
NZ Funds Wealth Builder - Growth Strategy
The objective of the NZ Funds Wealth Builder - Growth Strategy is to grow your investment over the long term by investing in growth assets and other authorised assets with active management. The fund is anticipated to mainly own and trade New Zealand, Australian and international shares and/or hedge funds over the minimum suggested timeframe.Full NZ Funds NZ Funds Wealth Builder - Growth Strategy profile →
Documents
Crawled directly from each manager's website. How we record provenance →
Common questions
What's the difference between the Foundation Series Growth Fund and the NZ Funds Wealth Builder - Growth Strategy?
Which fund has lower fees, Foundation Series Growth Fund or NZ Funds Wealth Builder - Growth Strategy?
How do the 5-year returns compare?
Are both funds PIE-taxed in NZ?
Where can I read the official documents for these funds?
