Fund update

Balanced fund

For the year ended 31 December 2016.

This update was first made publicly available on 26 May 2017.

This is a replacement fund update. It replaces the UniSaver New Zealand Balanced Fund fund update first made publicly available on 27 March 2017. The following change has been made in this replacement fund update. The market index annual return for the past year has been correct to 7.26% from 8.02% (see the section below titled 'How has the fund performed?').

What is the purpose of this update?

This document tells you how the Balanced fund has performed and what fees were charged. The document will help you to compare the fund with other funds. UniSaver Limited prepared this update in accordance with the Financial Markets Conduct Act 2013. This information is not audited and may be updated.

Description of this fund

The Balanced fund invests in a balanced portfolio with a slight emphasis on growth assets (e.g. shares). Its objective is to achieve returns of 2.25% above inflation over rolling 7-year periods while keeping the risk of a member losing more than 15% after inflation in any one year reasonably small.

Total value of the fund $563,778,367
Number of investors in the fund 6,698
The date the fund started 1 March 1993

What are the risks of investing?

Risk indicator for the Balanced fund

Risk indicators Balanced2

The risk indicator is rated from 1 (low) to 7 (high). The rating reflects how much the value of the fund’s assets goes up and down. A higher risk generally means higher potential returns over time, but more ups and downs along the way.

To help you clarify your own attitude to risk, you can seek financial advice or work out your risk profile at

Note that even the lowest category does not mean a risk-free investment, and there are other risks that are not captured by this rating. This risk indicator is not a guarantee of a fund’s future performance. The risk indicator is based on the returns data for the past five years. While risk indicators are usually relatively stable, they do shift from time to time. The risk indicator will continue to be updated in future fund updates.

See the product disclosure statement (PDS) for more information about the risks associated with investing in this fund.

How has the fund performed?

  Average over past 5 years Past year
Annual return
(after deductions for charges and tax)
9.07% 5.27%
Annual return
(after deductions for charges but before tax)
10.51% 6.69%
Market index annual return (reflects no deduction for charges and tax) 10.72% 7.26%

The market index annual return is based on the returns of a composite index. The composite index is made up of the individual asset class benchmark indices used to measure the performance of each underlying fund/asset class into which the fund invests. Accordingly, the market index annual return for each of the funds is a composite return, calculated using the weighted average return of the benchmark indices used to measure the performance of the underlying funds/assets into which each fund invests. The weighting for each benchmark within the composite is equal to the strategic asset allocation weighting for that asset class. This market index return provides a relative measure of the fund’s performance.

Further information about the market index is available on the offer register at

Annual return graph

Balanced 10 years V2

This shows the return after fund charges and tax for each year ending 31 December for each of the last 10 years ending 31 December. The last bar shows the average annual return for the last 10 years, up to 31 December 2016.

Important: This does not tell you how the fund will perform in the future.

What fees are investors charged?

Investors in the Balanced fund are charged fund charges. In the year to 31 December 2016 these were:

  % of net asset value
Total fund charges 0.67%
Which are made up of:  
Total management and administration charges 0.67%
Including -  
Manager’s basic fee 0.00%
Other management and administration charges 0.67%
Total performance-based fees 0.00%


  Dollar amount per investor or description of how charge is calculated
Other charges  
Administration fee $52.32 per annum (deferred members only)

Investors may also be charged individual action fees for specific actions or decisions (for example, withdrawing from or switching funds). See the ‘Fees’ document on the offer register at for more information about those fees. Small differences in fees and charges can have a big impact on your investment over the long term.

Example of how this applies to an investor

Mary had $10,000 in the fund at the start of the year and did not make any further contributions. At the end of the year, Mary received a return after fund charges were deducted of $669.05 (that is 6.69% of her initial $10,000). Mary also paid $52.32 in other charges. This gives Mary a total return after tax of $527.28 for the year.

What does the fund invest in?

This shows the types of assets that the fund invests in.

Actual investment mix

Pie charts Balanced v3 Copy

Target investment mix

Asset type Allocation
Cash and cash equivalents  9.00%
New Zealand fixed interest  0.00%
International fixed interest  36.00%
Australasian equities  12.50%
International equities  37.50%
Listed property  5.00%
Unlisted property  0.00%
Commodities  0.00%
Other  0.00%

Top 10 investments

Asset name % of fund net assets Type Country Credit rating
ANZ Wholesale Cash Fund  8.90% Cash and cash equivalents NZ n/a
Harbour Australasian Equities Fund 6.12% Australasian equities NZ n/a
ANZ Australasian Equities Fund 5.97% Australasian equities NZ n/a
New Zealand Dollar Cash with StateStreet 2.29% International fixed interest NZ AA-
FNCL 3 2/15 12/02/2015 Maturity Date 3 Coupon 0.76% International fixed interest US  AA+
FNCL 3.5 2/17 13/02/2017 Maturity Date 3.5 Coupon 0.69% International fixed interest US AA+
Citigroup Inc. 0.48% International equities US  n/a
Microsoft Corporation 0.47% International equities US n/a
Bank of America Corporation 0.44% International equities US n/a
Apple Inc. 0.42% International equities US n/a

The total value of the above 10 individual assets is 26.54% of the net asset value of the fund.

The fund’s exposure to international fixed interest and international listed property is 100% hedged to the NZ dollar, and the fund’s exposure to international equities is 50% hedged to the NZ dollar.

Key personnel

Name Current position

Time in current position

Malcolm Johnson  Board member of UniSaver Limited and licensed independent trustee

3 years and 6 months

Adrienne Cleland  Board member of UniSaver Limited 8 years and 0 months
Carolyn Dimond  Board member of UniSaver Limited 1 year and 6 months
Wayne Morgan  Board member of UniSaver Limited 11 years and 0 months
 John Patrick  Board member of UniSaver Limited 1 year and 6 months

Further information

You can also obtain this information, the PDS for UniSaver New Zealand, and some additional information from the offer register at

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