Defensive
Investment Fund

This fund is mostly invested in income assets, with very limited exposure to growth assets.

The minimum suggested investment timeframe is 2 years.

 

Changes to the Defensive Investment Fund

 

Effective from 1 July 2024 (the Effective Date) the Defensive Investment Fund will be renamed the Simplicity NZ Cash Fund and will invest only in a portfolio of cash and cash equivalent assets. The NZ Cash Fund’s objective will be to outperform the Bloomberg NZ Bond Bank Bill Index. From the Effective Date the NZ Cash Fund will become a single sector fund which is designed to be the NZ cash and cash equivalent component of a diversified investment portfolio. The investment management fee will reduce from 0.25% per annum to 0.10% per annum, in line with our other NZ single sector investment funds.

Simplicity Fee

0.25%

Market Average

0.66% *

* Market average fee sourced from Sorted Smart Investor based on $10,000 in diversified funds with a similar growth / income asset allocation as at 2 May 2024. Simplicity fee as at 2 May 2024.

Why invest in this fund?

Targets lower volatility

With a high allocation to income assets, this fund suits investors seeking more stable short-term returns.

Low, low fees

We're focused on keeping fees low. Because the less we take, the more you can make.

Access to your money at any time

No minimum investment term, and you can set up regular or one-off withdrawals at any time.

You can make money and do good

We keep our fees very low, and give 15% of these fees to the Simplicity Foundation - which supports many deserving Kiwi charities.

What this fund invests in

Over 4,000 investments in more than 20 countries.

The target asset allocations are 95% in income assets (44% New Zealand fixed interest, 36% International fixed interest, and 15% cash and cash equivalents), with 5% in growth assets (unlisted property).

 

The returns and volatility of the Fund are likely to be lower over the longer term (10 years or more) than our other Funds.

 

This option suits members seeking returns with lower volatility.

Target asset allocation

Performance

0.76%

1 Month

0.63%

3 Months

2.69%

1 Year

2 Years

3 Years

5 Years

* These returns are to 31-05-2024 and are before tax and after fund management fees. Yearly returns are per annum. Past performance is not necessarily an indicator of future performance and return periods may differ.

Risk Profile

The risk indicator reflects how much the value of the Fund’s assets goes up and down (volatility). A higher risk generally means higher potential returns over time, but more ups and downs along the way.

1
2
3
4
5
6
7
Lower risk
Higher risk

Note that even the lowest category does not mean a risk-free investment, and there are other risks that are not captured in this rating. This risk indicator is not a guarantee of a fund’s future performance. While risk indicators are usually relatively stable, they do shift from time to time. The risk indicator reflects the most recent quarterly fund update or the PDS if a fund update has not yet been produced and will continue to be updated in future fund updates. See the product disclosure statement (PDS) for more information about the risk indicator and the risks associated with investing in this fund.

Frequently Asked Questions

How does the Defensive Investment Fund differ from the Conservative Investment Fund?

The Simplicity Defensive and Conservative Investment Funds have the same risk rating, but the Defensive Investment Fund has a higher allocation of income assets such as cash and fixed interest investments like bonds. 

The return of the Defensive Investment Fund is expected to be lower than our other funds over 10 years or longer, while the range of returns from year to year is expected to be less volatile. This fund may be appropriate for those with shorter investment time frames such as people nearing retirement, about to buy their first home, or with lower risk appetites.

Is a Cash Fund the same as a Defensive Fund?

A cash fund is a type of defensive fund that normally invests only in cash and cash equivalent assets such as short-term bank deposits. The Defensive Investment Fund has some non-cash investments such as bonds (that may have more than one year to maturity) and other capital-stable assets.

Does the Defensive Investment Fund invest in unlisted property investments and loans secured by first mortgages?

Yes. The Defensive Investment Fund has exposure to both. Please read the Statement of Investment Policy and Objectives (SIPO) to learn more.

How does the Defensive Investment Fund differ from a Term Deposit?

Unlike a bank term deposit which returns a fixed rate of return for a given time period, the Defensive Investment Fund is invested in a range of assets, including a small allocation to unlisted property investments, and the value of these investments fluctuates daily with movements in the market.

Key Documents

Latest Fund Update

This document is produced quarterly and tells you how the fund has performed and what fees were charged and will help you to compare the fund with other funds.

Product Disclosure Statement

This document gives you important information to help you decide whether you want to invest. There is other useful information about this offer on companiesoffice.govt.nz/disclose

Statement of Investment Policy and Objectives (SIPO)

This policy describes Simplicity NZ Limited’s Governing Principles, provides a description of the Scheme, outlines its purpose and philosophy, its investment objectives and policies. It also covers investment performance monitoring and reporting.

Responsible Investment Policy

This policy describes Simplicity NZ Limited’s approach to responsible investment. This policy is to be read alongside our scheme governing documents, including the Statement of Investment Policy and Objectives (“SIPO”), Product Disclosure Statement (“PDS”) and Other Material Information (“OMI”).

Other funds you may be interested in..

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New

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Unhedged Global Share

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NZ Bond

This fund invests in New Zealand government and investment grade bonds issued in New Zealand dollars.

Hedged Global Bond

This fund invests in investment grade bonds in developed markets and is designed to be part of a diversified investment portfolio.

Minutes to join

Grab your IRD number and driver licence or passport, and fill in the form. We’ll do everything else %)