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Fund Update

Balanced

For the year ended 31 December 2018.

This update was first made publicly available on 29 March 2019.

What is the purpose of this update?

This document tells you how Balanced 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

Balanced is a balanced investment option with a slight emphasis on growth assets. Its principal 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 $650,025,010 
Number of investors in the fund 7,117 
The date the fund started 1 March 1993

What are the risks of investing?

Balanced

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 www.sorted.org.nz/tools/investor-kickstarter.

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)
5.91%   (4.08%)
Annual return
(after deductions for charges but before tax)
 7.24%  (3.18%)
Market index annual return (reflects no deduction for charges and tax)  7.42% (1.87%)


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 the fund 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 the 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 www.disclose-register.companiesoffice.govt.nz.

Annual return graph

10 year 2018 balanced

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 2018.


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


What fees are investors charged?

Investors in Balanced are charged fund charges. In the year to 31 December 2018 these were:

  % of net asset value
Total fund charges 0.62%
Which are made up of:  
Total management and administration charges 0.62%
Including -  
Manager’s basic fee 0.00%
Other management and administration charges 0.62%
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 www.disclose-register.companiesoffice.govt.nz 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 incurred a loss after fund charges were deducted of $318 (that is -3.18% of her initial $10,000). This gives Mary a total loss after tax of $408 for the year.

What does the fund invest in?

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

Pie 2018 balance

Top 10 investments

Asset name % of fund net assets Type Country Credit rating
 ANZ Wholesale Cash Fund  1.81%  Cash and cash equivalents New Zealand  
 New Zealand Dollar Cash Deposit (State Street Bank & Trust) 1.27%   Cash and cash equivalents New Zealand  AAA
 A2 Milk Company Ltd 1.16%   Australasian equities New Zealand  
 Federal National Mortgage Association 3.50% 14/01/2019 1.03%   International fixed interest United States AAA
 Federal National Mortgage Association 3.50% 14/02/2019 0.87%   International fixed interest United States AAA
 Spark New Zealand Ltd 0.74%   Australasian equities New Zealand  
 Australian Dollar Cash Deposit (State Street Bank & Trust)  0.73%  Cash and cash equivalents Australia AAA
 US Treasury Notes or Bills 2.00% 31/12/2021 0.71%   International fixed interest United States AAA
 Contact Energy Ltd 0.68%   Australasian equities New Zealand  
 Fisher & Paykel Healthcare Ltd 0.66%   Australasian equities New Zealand  

The total value of the above 10 individual assets is 9.65% of the net asset value of the fund.

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

Key personnel

Name Current position

Time in current position

Adrienne Cleland Board member of UniSaver Limited 10 years and 0 months
Carolyn Dimond Board member of UniSaver Limited 3 years and 6 months
Michael McAlpine   2
Board member of UniSaver Limited 6 months
Wayne Morgan Board member of UniSaver Limited 13 years and 0 months
Ian Russon   
Board member of UniSaver Limited (and licensed independent trustee) 2 years and 0 months (and 1 year and 2 months as licensed independent trustee)

Further information

You can also obtain this information, the PDS for UniSaver New Zealand and some additional information from the offer register at www.disclose-register.companiesoffice.govt.nz.

Notes

    1 'Other' consists of global high-yield bonds.

    2 Michael McAlpine has not been named in a previous fund update for Balanced.

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