Most Simplicity KiwiSaver and diversified Investment Funds funds include a limited allocation to unlisted New Zealand property. This exposure is implemented through investment in the Simplicity Wholesale Property Fund, which in turn invests in Simplicity Living Limited. For most funds this allocation is modest, relative to the overall portfolio.

How the structure works

The relevant KiwiSaver and Investment Funds invest in units of the Simplicity Wholesale Property Fund (Property Fund). The Property Fund invests exclusively in unlisted shares of Simplicity Living Limited, a related entity that develops and owns long-term residential rental housing in New Zealand.

The Property Fund is not offered directly to retail investors. It is used within the Schemes to provide exposure to the unlisted property asset class, in accordance with each fund’s Statement of Investment Policy and Objectives (SIPO).

For most funds this allocation is modest relative to the overall portfolio.


How much exposure does each fund have?

As at 31 December 2025, the actual and benchmark (long-term target) allocations to the Property Fund were:

* Actual allocations are as at 31 December 2025 and may change over time within the permitted ranges set out in the relevant SIPO. Benchmark allocations represent long-term target asset allocations. The KiwiSaver Default Fund and single-sector investment funds do not have an allocation to the unlisted NZ property portfolio.

Putting this in perspective

For most diversified funds, between 90% and 97.5% of assets are invested in other asset classes such as:

• International equities

• New Zealand equities

• International and New Zealand fixed interest

• Cash

These exposures are predominantly implemented using a passive, index-tracking approach, consistent with Simplicity’s investment philosophy as set out in the SIPO.

The allocation to unlisted property is therefore a relatively minor component within a broadly diversified portfolio.


Why include unlisted property at all?

Under the SIPO, funds may include a limited allocation to unlisted New Zealand property as part of their growth asset exposure. This allocation:

• Provides exposure to long-term residential rental property

• Is subject to defined benchmark limits and asset allocation ranges

• Is overseen by Simplicity’s Investment Committee

• Is monitored by the Supervisor

As an unlisted asset class, it is less liquid than listed shares and bonds. The allocation limits are designed to ensure that liquidity and diversification remain appropriate for each fund’s risk profile.

Risk considerations

Funds with exposure to the Property Fund have exposure to:

• Property market risk

• Development and operating risk

• Valuation risk (as the investment is unlisted)

• Liquidity risk

These risks are described in the relevant SIPO, Product Disclosure Statement, and Other Material Information documents. Because the allocation is limited in size for most diversified funds, these risks form only part of the overall diversified portfolio risk.


How can I see updated information?

The actual allocation to unlisted New Zealand property will vary over time within the permitted ranges set out in the SIPO.

For the most up-to-date information on your fund’s exposure to the Property Fund (and other asset classes), refer to the latest Quarterly Fund Update for your fund. Quarterly Fund Updates are published on our website and on the Disclose Register, and include current asset allocation information.

You can also use the “Where in the world is my money?” tool on our website to view a breakdown of your fund’s underlying assets.


Summary

• Exposure to Simplicity Living is obtained indirectly via the Wholesale Property Fund

• For most diversified funds, the target allocation is between 2.5% and 10%, and the actual allocation may differ within the SIPO range

• The majority of each fund remains invested in globally diversified, predominantly passive portfolios

• Asset allocation limits and governance arrangements are set out in the SIPO and monitored by the Supervisor
  
  
  

For full details, refer to the relevant Product Disclosure Statement, Statement of Investment Policy and Objectives (SIPO), and Other Material Information documents available on the Disclose Register and at www.simplicity.kiwi.