Fund-vs-fund · Diversified
Foundation Series Growth Fund vs Simplicity Homes and Income Investment 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 their growth asset allocation, which drives meaningfully different risk profiles. The Foundation Series Growth Fund holds 78.48% in growth assets and carries a risk indicator of 4, while the Simplicity Homes and Income Investment Fund holds just 23.37% in growth assets with a risk indicator of 3 — placing them at opposite ends of what a "Diversified" category label might imply.
Portfolio construction also diverges sharply. The Simplicity fund concentrates its largest single position — 14.11% — in Simplicity Living Ltd Ordinary Shares, a related-party unlisted equity, with the remainder largely in NZ floating-rate bank notes and a CHFA bond. The Foundation Series Growth Fund, by contrast, spreads exposure across globally diversified ESG-screened ETFs (Vanguard ESG US Stock ETF at 38.94%, Vanguard ESG INTL Stock ETF at 19.26%) alongside NZ equities and bond funds, signalling a deliberate ESG tilt throughout.
On cost, Simplicity charges 0.25% per annum against Foundation Series' 0.38%. Fund size is comparable — NZD 67.8 million versus NZD 62.4 million respectively. Foundation Series discloses a five-year return of 6.31% per annum; the Simplicity fund's five-year return figure is not available in this snapshot. Neither fund is a KiwiSaver scheme account.
Readers should verify all figures against each fund's current Product Disclosure Statement and latest Quarterly Fund Update on FMA Disclose before making any investment decision.
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
- Simplicity Homes and Income Investment Fund charges 0.13% lower in annual fund charges (0.25% vs 0.38%).
- 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
Simplicity
0.25%
Lowest 6% of cohort
5-year return p.a.
Past performance — not a predictor
Foundation Series
6.31%
Top 15% over 5 years
Simplicity
—
—
Fund size
Larger = more stable, lower close-risk
Foundation Series
NZ$62m
Upper half by size
Simplicity
NZ$68m
Upper half by size
| Metric | Foundation Series | Simplicity | Lower / higher is |
|---|---|---|---|
| Annual fund charge | 0.38% | 0.25% | Lower is better |
| Risk indicator (1–7) | 4 | 3 | Higher = more volatility |
| 5-year return p.a. | 6.31% | — | Higher is better (past not future) |
| Fund size | NZ$62m | NZ$68m | Larger = more stable, lower close-risk |
| Growth / income split | 78% / 22% | 23% / 77% | 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
2
of each fund's top 10
Foundation Series weight in shared
2.2%
of Foundation Series Growth Fund top 10 is shared
Simplicity weight in shared
7.6%
of Simplicity Homes and Income Investment Fund top 10 is shared
| Holding | Foundation Series | Simplicity |
|---|---|---|
 Mercer Macquarie NZ Cash Fund NZ | 1.62% | 3.80% |
| $ Cash at Bank (BNZ) NZ | 0.60% | 3.80% |
"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 →
Simplicity
Simplicity Homes and Income Investment Fund
The Homes and Income Investment Fund provides investors with an exposure to a mix of growth and income assets, with a focus on residential property.Full Simplicity Simplicity Homes and Income Investment Fund 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 Simplicity Homes and Income Investment Fund?
Which fund has lower fees, Foundation Series Growth Fund or Simplicity Homes and Income Investment Fund?
Are both funds PIE-taxed in NZ?
Where can I read the official documents for these funds?
