What can the Simplicity Growth Investment 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 | 4% | 0% | 15% |
| New Zealand fixed interest | 9.75% | 0% | 20% |
| International fixed interest | 6.25% | 0% | 15% |
| Total Income Assets | 20% | 10% | 30% |
| New Zealand equities | 12.4% | 2% | 22% |
| Unlisted New Zealand property | 8.6% | 0% | 20% |
| International equities | 59% | 49% | 69% |
| Total Growth Assets | 80% | 70% | 90% |
Mandate flexibility (sum of max − min across all ranges): 150%. Moderate range — some manager latitude within a broader mandate.
Responsible-investment approach
A negative screening approach is adopted for all portfolios, based on excluded business activities and behaviour-related exclusions. For overseas investments, external manager DWS applies custom broad-based market indices subject to responsible investment screening overlay.
Derivatives policy
Derivatives are only permitted for forward foreign exchange contracts to hedge currencies and interest rate swaps to hedge interest rate risk of community housing bonds. Derivatives are only used if there is no cost-effective means to gain an essential investment exposure using physical securities.