What can the Octagon 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 | 7% | 0% | 50% |
| New Zealand fixed interest | 19% | 0% | 50% |
| International fixed interest | 19% | 0% | 50% |
| Australasian equities | 17% | 0% | 50% |
| International equities | 35% | 20% | 70% |
| Listed property | 3% | 0% | 50% |
| Other | — | 0% | 10% |
Mandate flexibility (sum of max − min across all ranges): 310%. Wide range — high manager discretion typical of active management.
Responsible-investment approach
ESG considerations are taken into account via product involvement exclusion screening (weapons, tobacco, semi-automatic civilian weapons) using MSCI tools with a 5% revenue threshold; positive ESG risk assessment for directly held Australasian securities using Forsyth Barr CESG ratings and MSCI controversy data; and consideration of responsible investment frameworks before investing in unrelated underlying funds. Additional exclusions apply for the Trans-Tasman Equities Fund covering fossil fuel upstream activities, gambling (>10% revenue), and factory farming.
Derivatives policy
The funds may use derivatives where the Investment Manager considers doing so is consistent with the funds' risk profile and will contribute to the performance objectives of the funds. Derivatives may also be used by the manager of an underlying investment scheme.