OneAnswer KiwiSaver Scheme Conservative Balanced Fund

Fund report as at 31 December 2018

How has the fund performed?

Performance as at 31 December 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 31 December 2018)

  • Bond investments did well, benefiting from being a ‘safe haven’ during a turbulent period for financial markets. The fund has a significant weighting to bond investments, which make up around 45% of its holdings.
  • Despite this, the fund’s performance was impacted by the sharp declines in international share markets. Higher US interest rates, global trade disputes and expectations of a slowdown in company earnings all kept investors on edge. Other factors weighing on sentiment included US mid-term elections and Brexit negotiations.
  • Our tactical positioning held back overall performance. We were overweight international shares, which struggled, and underweight international bonds, which did well. However, our decision to increase the fund’s allocation to international listed property helped, as this asset class proved resilient given the more defensive nature of the market.
  • Some weak company selection was also detrimental to the fund’s return, particularly among our Australian share holdings. The fund’s exposure to materials and energy companies suffered on the back of trade-related concerns, falling global oil prices and a slowing Chinese economy.
  • Despite the concerns hanging over financial markets, global growth is strong and we believe the fundamentals for share market performance remain in place. We used the recent falls in shares to position the fund for our reasonably positive outlook. While that held back performance this quarter, the fund should benefit from any rebound in share markets if current uncertainties subside.
  • We maintain a modest overweight position in international shares and international listed property, while being underweight international bonds, where returns should be limited as global interest rates start moving 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 fund aims to achieve a positive yearly return (after the fund charge and before tax) that over the long term is 2.5% over inflation (allowing for a negative return 3.7 years in every 20).

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.

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?

The fund invests mainly in income assets, with some exposure to growth assets.

This chart shows the mix of assets that the fund generally intends to invest in.

See the fund's actual investment mix on page 3 of the Fund update.