multi-asset · multi-sector · balanced
Diversified-multi-asset fund
A fund that holds multiple asset classes in a single product — typically NZ shares, international shares, fixed interest, listed property, and cash — in target asset-allocation ranges.
A diversified-multi-asset fund holds multiple asset classes in a single product, replacing what would otherwise be five or six separate single-asset-class fund holdings. Typical mix: NZ equities, international equities, NZ fixed interest, international fixed interest, listed property, and cash, with optional allocations to alternatives and infrastructure.
NZ retail diversified funds are commonly grouped into four risk-profile labels: Conservative (around 20% growth assets / 80% income assets), Balanced (around 50/50), Growth (around 75/25), and Aggressive (around 90/10). Each manager defines the exact ranges in its scheme SIPO; the ranges differ across managers, sometimes materially.
Diversified-multi-asset funds are the default product for retail investors who want a single one-decision portfolio. They are also the default form of KiwiSaver scheme default fund. The mechanics for getting from "investor picks a risk profile" to "fund deploys money across N asset classes" are largely interchangeable across managers; what differs is the active-vs-index choice within each sleeve, the responsible-investment screening, and the fee level.
Related terms
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asset-allocation
Asset allocation
The percentage split of a fund's portfolio across asset classes: equities, fixed interest, listed property, cash, alternatives. Drives the fund's risk and return profile more than security selection.
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SIPO
Statement of Investment Policy and Objectives (SIPO)
The fund-manager document setting out the fund's investment objectives, strategy, asset-allocation ranges, derivative use, hedging, rebalancing and exclusion rules — filed on FMA Disclose and binding on the manager.
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FMA risk indicator
Risk indicator (1–7 scale)
A standardised 1–7 risk score every NZ retail managed fund must publish, calculated from the fund's price volatility (standard deviation of weekly returns) over the past five years.