Fund-vs-fund · Diversified
NZ Funds Wealth Builder - Income Strategy vs NZ Funds Wealth Builder - Inflation 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 asset allocation. The NZ Funds Wealth Builder – Income Strategy holds just 0.07% in growth assets, functioning in practice as a near-pure income and cash fund, while the NZ Funds Wealth Builder – Inflation Strategy allocates 78.48% to growth assets, positioning it as a predominantly growth-oriented portfolio despite both sitting within the Diversified category on FMA Disclose.
This allocation gap flows directly into risk and fee profiles. The Income Strategy carries a risk indicator of 4 and an annual fund charge of 1.20%; the Inflation Strategy carries a risk indicator of 5 and an annual fund charge of 1.58%. Over the five-year period reported in each fund's latest Quarterly Fund Update, the Income Strategy returned 0.79% per annum against the Inflation Strategy's 2.27% per annum — though past returns are not a reliable indicator of future performance.
The portfolios reflect their respective mandates. The Income Strategy's top holdings are dominated by short-dated Westpac and BNZ bank bills maturing in 2026, alongside an ANZ bond. The Inflation Strategy's disclosed top holdings are equity positions in Australasian infrastructure and utility names — Telstra, Chorus, Contact Energy, and Mercury NZ — alongside a cash position, consistent with an inflation-sensitive equity tilt.
Both funds are similarly sized (Income Strategy NZ$20.4 million; Inflation Strategy NZ$23.0 million) and share the same Product Disclosure Statement dated 30 March 2026.
Verify all figures against the source PDS 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
- NZ Funds Wealth Builder - Income Strategy charges 0.38% lower in annual fund charges (1.20% vs 1.58%).
- 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
NZ Funds
1.20%
Upper half of cohort
NZ Funds
1.58%
Highest 5% of cohort
5-year return p.a.
Past performance — not a predictor
NZ Funds
0.79%
Bottom 4% over 5 years
NZ Funds
2.27%
Lower half over 5 years
Fund size
Larger = more stable, lower close-risk
NZ Funds
NZ$20m
Lower half by size
NZ Funds
NZ$23m
Lower half by size
| Metric | NZ Funds | NZ Funds | Lower / higher is |
|---|---|---|---|
| Annual fund charge | 1.20% | 1.58% | Lower is better |
| Risk indicator (1–7) | 4 | 5 | Higher = more volatility |
| 5-year return p.a. | 0.79% | 2.27% | Higher is better (past not future) |
| Fund size | NZ$20m | NZ$23m | Larger = more stable, lower close-risk |
| Growth / income split | 0% / 100% | 78% / 22% | 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
NZ Funds weight in shared
6.8%
of NZ Funds Wealth Builder - Income Strategy top 10 is shared
NZ Funds weight in shared
8.7%
of NZ Funds Wealth Builder - Inflation Strategy top 10 is shared
| Holding | NZ Funds | NZ Funds |
|---|---|---|
 Westpac Cash NZ | 4.01% | 4.34% |
| CN Citibank New Zealand Cash NZ | 2.78% | 4.34% |
"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
NZ Funds
NZ Funds Wealth Builder - Income Strategy
The objective of the NZ Funds Wealth Builder - Income Strategy is to generate gains by investing in income assets and other authorised assets with active management. The fund is anticipated to own and trade New Zealand, Australian and international bonds over the minimum suggested timeframe.Full NZ Funds NZ Funds Wealth Builder - Income Strategy profile →
NZ Funds
NZ Funds Wealth Builder - Inflation Strategy
The objective of the NZ Funds Wealth Builder - Inflation Strategy is to mitigate the impact of inflation on your investment over the medium and/or long term. The fund is anticipated to mainly own and trade New Zealand, Australian and international shares over the minimum suggested timeframe.Full NZ Funds NZ Funds Wealth Builder - Inflation Strategy profile →
Common questions
What's the difference between the NZ Funds Wealth Builder - Income Strategy and the NZ Funds Wealth Builder - Inflation Strategy?
Which fund has lower fees, NZ Funds Wealth Builder - Income Strategy or NZ Funds Wealth Builder - Inflation 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?
