What can the SBS Wealth Conservative Strategy 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 | 5% | 0% | 15% |
| New Zealand fixed interest | 23.75% | 10% | 40% |
| International fixed interest | 42.75% | 30% | 60% |
| Australasian Equities | 7.6% | 0% | 15% |
| International Equities | 20.9% | 10% | 35% |
Mandate flexibility (sum of max − min across all ranges): 115%. Moderate range — some manager latitude within a broader mandate.
Responsible-investment approach
Guided by stewardship principles of 'driving change over time, not over night' and 'focus on opportunities, not just exclusions'. Favours investments with lower carbon intensity or lower fossil fuel involvement and prefers companies with greater carbon solutions involvement.
Derivatives policy
Derivatives may be used as a risk management tool (e.g. to hedge currency risk) but not to leverage any Fund or increase portfolio risk beyond directly held securities; any derivative positions must be backed by physically held positions and the Supervisor must be advised of any decision to use derivatives.