OneAnswer KiwiSaver Scheme Balanced Growth Fund

Fund report as at 30 September 2018


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How has the fund performed?

What does the fund invest in?

What sort of fund is this?

How has the fund performed?

Performance as at 30 September 2018

3 months

1 year

3 years (pa)

5 years (pa)

Since launch






Performance is after the annual fund charge, and before tax and membership fees (if applicable). For more information, see legal information and disclaimers.

What happened this quarter (3 months to 30 September 2018)

  • Despite ongoing trade concerns between the US and China, share markets delivered strong gains over the quarter. In the US, wide-sweeping tax cuts and robust economic growth meant that most companies reported strong results and profits.
  • Bonds (which are more sensitive to changes in interest rates) fell in value, as some of the world’s major central banks continue to return interest rates to more ‘normal’ levels following a period of very low rates.
  • Our tactical positioning was of benefit to the fund’s performance this quarter. We have been overweight international shares, which have performed well, and underweight international bonds, which have struggled. Our exposure to New Zealand listed property also helped, as the local property market has been supported by strong demand and very low vacancy rates.
  • However, some weak company selection among the fund’s international shares managers held back returns, with only one of our four underlying managers outperforming the market during the quarter. It was a similar story in Australian shares, where holdings in some resource companies and the weak-performing financials sector weighed on returns.
  • International shares should continue to be supported by a recovery in global growth. We retain our overweight position, although have scaled it back slightly following the recent strong run from this market. Meanwhile, we continue to hold an underweight position to international bond markets, where returns should be limited as global interest rates move higher.

Need more information?

  • Read our Market Review for more information on investment markets
  • Key read: why it’s wise not to try to time the market or chase returns

How the fund has performed against its objective

The graph below shows the value of a $1,000 investment made at the time the fund launched. The blue line represents the actual value of the investment while the aqua line shows the level (fund objective) the fund aims to beat over the long term. When the blue line is higher than the aqua line, the performance is better than target.

*From 10 August 2018, the investment objective for this fund changed from CPI + 4.2% to CPI 4.0%

Performance is after the annual fund charge and before tax and membership fees (if applicable). For more information, see legal information and disclaimers.

What does the fund invest in?

In the table below, the ‘target investment mix’ shows the mix of assets the fund generally intends to invest in. Depending on our current strategy, the actual mix can be ‘overweight’ (the fund holds more than target), ‘underweight’ (the fund holds less than target) or neutral.

Being ‘overweight’ a particular asset class means we favour this asset class in the current investment environment, while ‘underweight’ is the opposite.

Investment mix as at 30 September 2018

Asset class

investment mix

investment mix


Cash and cash equivalents




New Zealand Fixed Interest




International Fixed Interest




Australasian Equities




International Equities




Listed Property





What sort of fund is this?

Fund description

Invests mainly in growth assets (equities and listed property), with some exposure to income assets (cash and cash equivalents and fixed interest). The fund may also invest in alternative assets.

Target investment mix

The mix of assets that the fund generally intends to invest in.

See the fund's actual investment mix in the table above.

Fund objective

Aims to achieve a positive yearly return (after the fund charge and before tax) that over the long term is 4.0% over inflation (allowing for a negative return 4.7 years in every 20).