Defensive profile
Below we outline a sample defensive asset allocation, we recommend for clients with a 0% risk tolerance. You can use this as a guide in constructing a Defensive portfolio.
Strategic investment mix
| Defensive Profile | Allocated % |
|---|---|
| New Zealand Cash | 65.00% |
| New Zealand Fixed Interest | 35.00% |
| Global Fixed Interest | 0.00% |
| Total income assets | 100.00% |
| New Zealand Equities | 0.00% |
| Australian Equities | 0.00% |
| Global Equities | 0.00% |
| Total growth assets | 0.00% |
| Total portfolio | 100.0% |
Risk indicator
The Financial Markets Authority has provided guidance on indicators which can help describe investment risk. These indicators are based on annualised standard deviations, a mathematical measure of risk.
On a scale of 1 (least risky) to 7 (most risky), the investment risk of the asset sectors can be described as follows:
| Asset sector | Risk Indicator | |
| Cash | 1 | Very low volatility |
| Fixed interest (New Zealand) | 2 | Low volatility |
| Fixed interest (Global) | 3 | Low to medium volatility |
| New Zealand equities and listed property | 4 | Medium to high volatility |
| Global equities | 5 | High volatility |
| Australian equities | 6 | Very high volatility |
The risk profile for a Defensive portfolio can be described as 2 (low volatility).
Performance:Check out the performance information for each fund, which is updated online monthly and read the latest quarterly fund update.