Fund-vs-fund · Diversified
Milford Balanced Fund vs Milford Diversified Income 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 Milford funds is their growth-asset allocation, which drives meaningful divergence in risk profile, fees, and historical returns. The Milford Balanced Fund holds 53.15% in growth assets against the Milford Diversified Income Fund's 23.37%, a gap that is reflected directly in their FMA risk indicators: 4 (moderate) versus 3 (low to moderate) respectively. Both funds are managed by Milford and sit within the same diversified category, but they are positioned at notably different points on the risk-return spectrum.
The fee difference reinforces this distinction. The Balanced Fund charges 1.05% per annum; the Diversified Income Fund charges 0.65% — a 40 basis-point gap that compounds materially over time. The Balanced Fund's higher fee accompanies a higher five-year return of 4.74% annually, compared to 3.75% for the Diversified Income Fund, though past returns do not indicate future performance.
The Diversified Income Fund is larger by funds under management (approximately NZD 3.50 billion versus NZD 2.52 billion). Its top holdings are dominated by government bonds — including three New Zealand Government bond lines — consistent with its income-oriented, lower-growth mandate. The Balanced Fund's top holdings show a more varied mix of multi-currency cash positions and equities such as SSE Plc alongside government bonds, reflecting its higher growth-asset weighting. Both funds share the same PDS dated 18 June 2025.
Verify all 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
- Milford Diversified Income Fund charges 0.40% lower in annual fund charges (0.65% vs 1.05%).
- 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
Milford
1.05%
Upper half of cohort
Milford
0.65%
Lowest 20% of cohort
5-year return p.a.
Past performance — not a predictor
Milford
4.74%
Upper half over 5 years
Milford
3.75%
Upper half over 5 years
Fund size
Larger = more stable, lower close-risk
Milford
NZ$2.52b
Largest 5% in cohort
Milford
NZ$3.50b
Largest 4% in cohort
| Metric | Milford | Milford | Lower / higher is |
|---|---|---|---|
| Annual fund charge | 1.05% | 0.65% | Lower is better |
| Risk indicator (1–7) | 4 | 3 | Higher = more volatility |
| 5-year return p.a. | 4.74% | 3.75% | Higher is better (past not future) |
| Fund size | NZ$2.52b | NZ$3.50b | Larger = more stable, lower close-risk |
| Growth / income split | 53% / 47% | 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
6
of each fund's top 10
Milford weight in shared
10.8%
of Milford Balanced Fund top 10 is shared
Milford weight in shared
11.4%
of Milford Diversified Income Fund top 10 is shared
| Holding | Milford | Milford |
|---|---|---|
| NZ New Zealand Government 4.5% 15/05/2035 NZ | 2.09% | 2.42% |
| $ NZD Cash Current Account (HSBC) NZ | 2.57% | 1.92% |
| $ USD Cash Current Account (HSBC) US | 2.29% | 1.92% |
| $ AUD Cash Current Account (HSBC) AU | 1.53% | 1.92% |
 Contact Energy Ltd NZ | 1.22% | 1.29% |
| $ NZD Cash Call Account (BNZ Bank) NZ | 1.09% | 1.92% |
"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
Milford
Milford Balanced Fund
The Fund’s objective is to provide capital growth after the base fund fee but before tax and before the performance fee, over the minimum recommended investment timeframe of five years. It is a diversified fund that primarily invests in equities, with a significant allocation to fixed interest securities.Full Milford Milford Balanced Fund profile →
Milford
Milford Diversified Income Fund
The Fund’s objective is to provide income and capital growth after the base fund fee but before tax and before the performance fee, over the minimum recommended investment timeframe of four years. It is a diversified fund that primarily invests in fixed interest and equity income-generating securities.Full Milford Milford Diversified Income Fund profile →
Documents
Crawled directly from each manager's website. How we record provenance →
Milford
LiveLast verified 2026-05-08
Milford
LiveLast verified 2026-05-08
Common questions
What's the difference between the Milford Balanced Fund and the Milford Diversified Income Fund?
Which fund has lower fees, Milford Balanced Fund or Milford Diversified Income 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?
