20/80 Portfolio

20% growth
80% income

Suitable for investors with a time horizon of at least 3 years before seeking to spend large amounts of their portfolio. This portfolio has an emphasis on capital preservation and should suit investors able to accept a small amount of volatility. 

Cash and Cash Equivalents
New Zealand Fixed Interest
International Fixed Interest
Listed Property
Australasian Equities
International Equities

Top Holdings as at 1 April 2019

Asset COUNTRY OF ORIGIN ASSET TYPE Allocation
Harbour NZ Equity Advanced Beta Fund New Zealand Australasian equities 5.2%
Dimensional Australian Small Company Trust Australia Australasian equities 0.5 %
Dimensional Australian Value Trust Australia Australasian equities 1.5%
iShares Australian Equity Index Fund Australia Australasian equities 0.5%
Dimensional Global Core Equity Trust (NZD) Australia International
equities
4.9%
Dimensional Global Small Company Trust Australia International
equities
3.4%
Dimensional Global Value Trust Australia International
equities
2.2%
Vanguard International Share Index Fund Australia International
equities
0.5%
Dimensional Emerging Markets Trust Australia International
equities
0.9%
iShares Emerging Markets IMI Equity Index Fund Australia International
equities
0.4%
Harbour NZ Corporate Bond Fund New Zealand New Zealand
fixed interest
20.0%
Dimensional Five-Year Diversified Fixed Interest Trust (NZD) Australia International
fixed interest
16.0%
Dimensional Global Bond Trust (NZD) Australia International
fixed interest
35.0%
Dimensional Two-Year Diversified Fixed Interest Trust (NZD) Australia International
fixed interest
7.0%
Cash New Zealand Cash and cash equivalents 2.0%
Total     100%

INVESTMENT OBJECTIVE

The investment objective of the portfolio is to outperform the respective index portfolio as defined by the benchmarks below. Performance is evaluated on a gross basis (before tax, fees and other expenses have been taken into account) over the period of the minimum time horizon for which the portfolio is stated as being suitable.

 

 

BENCHMARKS

As at 1 April 2019, the following benchmarks are used when reviewing underlying returns of asset classes and measuring performance for the above portfolios. Note these are subject to change without notice as more appropriate benchmarks become available. When reviewing the performance of underlying investments other benchmarks may be used that more closely approximate the objective of the investment.

ASSET CLASS INDEX 20/80
Australasian Equities S&P/NZX 50 Index (Gross) 5.2%
S&P/ASX 200 Index (Total Return) 2.5%
International Equities MSCI World ex Australia Index (hedged to NZD, net div.) 4.9%
MSCI World ex Australia Index (net div.) 6.1%
MSCI Emerging Markets Index (net div.) 1.3%
New Zealand Fixed Interest S&P/NZX A-Grade Corporate Bond Index 20.0%
International Fixed Interest FTSE World Government Bond Index 1-5 Years (hedged to NZD) 58.0%
Cash and cash equivalents New Zealand One-Month Bank Bill Yields Index 2.0%

NOTE:
*Cash is in an on call facility held by ANZ Bank New Zealand Ltd. ANZ Bank has a Standard & Poor's short term rating of A-1+. This indicates that ANZ Bank’s capacity to meet its financial commitment on these obligations is extremely strong.