Milford Conservative Fund

A $411 million conservative fund with a five-year track record that places it 5th in its category, charging 0.85% in annual fees against a sector where many rivals sit below 0.50%.

The portfolio splits roughly 70% bonds and 14% cash, with just 22% in growth assets. New Zealand government bonds dominate the top holdings, led by a 4.5% 2035 bond at 4.33% of the fund, followed by a 2.5% 2035 issue and local government debt. International bonds make up 36% of the fund, slightly edging out the 34% in New Zealand bonds. The growth sleeve divides between Australasian and international shares at around 6% to 7% each, with a small allocation to listed property. The fund holds meaningful cash across multiple currencies, including positions at HSBC and Bank of China.

Over one year the fund returned 5.4%, placing it 15th in the conservative category. The three-year return of 7.0% annualised lifts it to 10th, while the five-year figure of 3.5% annualised secures that 5th ranking. The fee level sits well above the category median, a material drag over time in a low-return environment where conservative funds typically deliver mid-single-digit returns.

General information only, not financial advice. Past performance is not a reliable indicator of future results.