KiwiSaver
Defensive Fund

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

The minimum suggested investment timeframe is 2 years.

Simplicity Fee

0.29%

Market Average

0.74% *

* Market average fee sourced from Sorted Smart Investor based on $10,000 in diversified funds with a similar growth / income asset allocation during the 12 months that ended on 31 March 2022. Simplicity fee as at 1 May 2023.

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

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 Fund differ from the Conservative Fund?

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

The return of the Defensive 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 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 Fund invest in unlisted property investments and loans secured by first mortgages?

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

How does the Defensive 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 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

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..

Growth

This fund invests mostly in growth assets, with a limited exposure to income assets.

High Growth

This fund invests mostly in growth assets.

Balanced

This fund is invested in a mix of growth and income assets.

Conservative

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

Default

This fund is invested in a mix of growth and income assets.

Minutes to join

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