What can the Foundation Series Balanced Fund actually invest in?
The fund's Statement of Investment Policy and Objectives (SIPO) defines the asset classes it can hold and the allowable target / min / max weights for each.
Strategic asset allocation ranges
| Asset class | Target | Min | Max |
|---|---|---|---|
| Cash and cash equivalents | 2% | 0% | 10% |
| New Zealand fixed interest | 12% | 0% | 20% |
| International fixed interest | 26% | 10% | 40% |
| Total income assets | 40% | 30% | 50% |
| Australasian equities | 17% | 7% | 27% |
| International equities | 43% | 28% | 58% |
| Total growth assets | 60% | 50% | 70% |
Mandate flexibility (sum of max − min across all ranges): 150%. Moderate range — some manager latitude within a broader mandate.
Explicit exclusions (49)
- Tobacco manufacturers and high-revenue wholesalers/retailers (Australasian Equities)
- Recreational cannabis producers/distributors (Australasian Equities)
- Alcohol manufacturers (>0% revenue) and high-revenue retailers (Australasian Equities)
- Gambling services providers (>0% revenue) (Australasian Equities)
- Adult entertainment producers and high-revenue distributors (Australasian Equities)
- Anti-personnel landmines (any exposure) (Australasian Equities)
- Chemical and biological weapons (any exposure) (Australasian Equities)
- Cluster munitions (any exposure) (Australasian Equities)
- Nuclear weapons (any exposure) (Australasian Equities)
- Military weapons manufacturers (>0% revenue) (Australasian Equities)
- Civilian automatic and semi-automatic firearms (Australasian Equities)
- Thermal coal extraction (>5% revenue) or electricity generation from thermal coal (>=25% revenue) (Australasian Equities)
- Palm oil production (>=10% revenue) (Australasian Equities)
- Animal testing for non-pharmaceutical purposes (>0% revenue) (Australasian Equities)
- Factory farming / intensive agriculture (>0% revenue) (Australasian Equities)
- Large carbon emitters exceeding 2.2m tonnes CO2-e per annum (Australasian Equities)
- Human rights and child labour controversy companies (UN Global Compact / UN Guiding Principles / ILO) (Australasian Equities)
- Poor ESG conduct companies (substantial breach without adequate remediation) (Australasian Equities)
- Tobacco manufacturers/distributors/retailers (International Equities)
- Cannabis Producers ICB subsector (International Equities)
- Alcohol manufacturers (>=5% revenue) and distributors/retailers (>=10% revenue) (International Equities)
- Gambling establishment owners/operators (>=5% revenue) and support providers (>=10% revenue) (International Equities)
- Adult entertainment producers (>=5% revenue) and distributors (>=10% revenue) (International Equities)
- Anti-personnel landmines (directly involved in core weapon system or components) (International Equities)
- Chemical and biological weapons (directly involved) (International Equities)
- Cluster munitions (directly involved) (International Equities)
- Nuclear weapons (directly involved) (International Equities)
- Military weapons manufacturers (>0% revenue) and support providers (>=5% revenue) (International Equities)
- Civilian firearms producers/distributors (>0% revenue) (International Equities)
- Nuclear power operators and supply chain (>0% revenue) (International Equities)
- Coal, oil and gas companies meeting specified revenue or reserve thresholds (International Equities)
- UN Global Compact non-compliant companies and small-cap watchlist companies (International Equities)
- Uyghur Forced Labour Prevention Act Entity List companies (International Equities)
- Companies failing two of three diversity indicators: women on board, diversity policies, diversity management systems (International Equities)
- Tobacco producers/distributors/retailers (>=5% revenue) (International Fixed Interest)
- Alcohol producers (>=5% revenue) and distributors/retailers (>=15% revenue) (International Fixed Interest)
- Gambling facility owners/operators (>=5% revenue) and support providers (>=15% revenue) (International Fixed Interest)
- Adult entertainment producers (>=5% revenue) and distributors/retailers (>=15% revenue) (International Fixed Interest)
- Anti-personnel and anti-vehicle landmine producers and component makers (International Fixed Interest)
- Biological and chemical weapons manufacturers and critical component producers (International Fixed Interest)
- Cluster munitions producers and delivery platform providers (International Fixed Interest)
- Nuclear weapons prime contractors and support/component providers (International Fixed Interest)
- Conventional weapons producers (>=5% revenue) and specialty weapons producers (>=10% revenue) (International Fixed Interest)
- Civilian firearms producers/retailers (and >=5% revenue) (International Fixed Interest)
- Genetic engineering companies (>=5% revenue) (International Fixed Interest)
- Nuclear power operators (>15% revenue) or high nuclear generation share companies (International Fixed Interest, except green bonds)
- Coal, oil and gas companies meeting specified revenue/reserve thresholds (International Fixed Interest, except green bonds)
- UN Security Council trade sanction subjects (International Fixed Interest)
- UN Global Compact very severe ongoing controversy companies (International Fixed Interest)
Responsible-investment approach
Designated Funds (Foundation Series Balanced Fund, Growth Fund, High Growth Fund and Global ESG Fund) invest into underlying funds that seek to limit exposure to companies involved in specific business practices via ESG exclusion screens applied at the Australasian Equities, International Equities, and International Fixed Interest asset class levels. Exclusions cover tobacco, cannabis, alcohol, gambling, adult entertainment, weapons, coal/oil/gas, nuclear power, human rights breaches, UN Global Compact non-compliance, Uyghur Forced Labour Prevention Act entities, and diversity failures among others.
Derivatives policy
The Funds can invest directly in securities including derivatives. Derivatives are not referenced beyond this permitted use; BNZ is responsible for execution of currency hedging via (implied) derivative instruments.