Fund-vs-fund · Diversified
Generate Focused Growth Managed Fund vs Simplicity Conservative 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 asset allocation. The Simplicity Conservative Investment Fund holds 23.37% in growth assets, positioning it firmly at the defensive end of the diversified spectrum, while the Generate Focused Growth Managed Fund sits at 98.31% growth assets — an almost entirely equity-oriented portfolio. This divergence directly shapes every other comparison point.
Risk indicators reflect this split: Simplicity Conservative is rated 3 out of 7, Generate Focused Growth is rated 5 out of 7, indicating meaningfully higher expected volatility in the Generate fund. The five-year return figures follow the same pattern — 1.78% per annum for Simplicity Conservative versus 6.34% for Generate Focused Growth — though past returns are not a reliable indicator of future performance, and the difference in return should be read alongside the difference in risk taken to achieve it.
Fee structures diverge sharply. Simplicity Conservative charges 0.25% in annual fund charges; Generate Focused Growth charges 1.35% — more than five times higher. Over long horizons, this gap compounds materially against the higher-fee option, all else being equal.
By fund size, Simplicity Conservative is the larger vehicle at approximately NZ$168.8 million versus Generate Focused Growth at approximately NZ$117.7 million. Portfolio composition reflects each fund's mandate: Simplicity Conservative's top holdings are dominated by cash and bank floating-rate notes, while Generate Focused Growth's are concentrated in global equities such as Nvidia, Microsoft, and Amazon, alongside Infratil.
Neither fund is a KiwiSaver scheme account offering in this comparison; both are standalone managed funds. Always verify current figures against the source PDS 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
- Simplicity Conservative Investment Fund charges 1.10% lower in annual fund charges (0.25% vs 1.35%).
- 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
Generate
1.35%
Highest 15% of cohort
Simplicity
0.25%
Lowest 6% of cohort
5-year return p.a.
Past performance — not a predictor
Generate
6.34%
Top 13% over 5 years
Simplicity
1.78%
Bottom 20% over 5 years
Fund size
Larger = more stable, lower close-risk
Generate
NZ$118m
Upper half by size
Simplicity
NZ$169m
Upper half by size
| Metric | Generate | Simplicity | Lower / higher is |
|---|---|---|---|
| Annual fund charge | 1.35% | 0.25% | Lower is better |
| Risk indicator (1–7) | 5 | 3 | Higher = more volatility |
| 5-year return p.a. | 6.34% | 1.78% | Higher is better (past not future) |
| Fund size | NZ$118m | NZ$169m | Larger = more stable, lower close-risk |
| Growth / income split | 98% / 2% | 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
Generate weight in shared
8.1%
of Generate Focused Growth Managed Fund top 10 is shared
Simplicity weight in shared
11.4%
of Simplicity Conservative Investment Fund top 10 is shared
| Holding | Generate | Simplicity |
|---|---|---|
| AN ASB NZ Dollar Cash Account NZ | 2.10% | 10.45% |
 Nvidia US | 5.95% | 0.91% |
"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
Generate
Generate Focused Growth Managed Fund
The Focused Growth Managed Fund aims to provide a higher return over the long term. It invests in an actively managed portfolio made up predominantly of growth assets with a minor allocation of income assets. Volatility is likely to be high. Returns will vary and may be low or negative at times.Full Generate Generate Focused Growth Managed Fund profile →
Simplicity
Simplicity Conservative Investment Fund
The Conservative Fund provides investors with a limited exposure to growth assets, but most of its investments are in income assets.Full Simplicity Simplicity Conservative Investment Fund profile →
Common questions
What's the difference between the Generate Focused Growth Managed Fund and the Simplicity Conservative Investment Fund?
Which fund has lower fees, Generate Focused Growth Managed Fund or Simplicity Conservative Investment Fund?
How do the 5-year returns compare?
Are both funds PIE-taxed in NZ?
Where can I read the official documents for these funds?
