Westpac Defensive Conservative

At 0.4 percent, this fund charges the lowest total fee in the conservative category and sits 2nd for returns over the past year. That combination of cost discipline and recent performance has helped it gather $254 million in member assets.

The portfolio leans heavily offshore, with international bonds making up 39 percent and New Zealand government bonds another 27 percent. The top holdings read like a roll call of New Zealand sovereign debt: the 4.5 percent 2035 bond, the 4.25 percent 2034 bond, and a 2.5 percent inflation-indexed bond maturing in 2035. A US 5-year Treasury note and an Australian 3-year bond future add offshore duration. Just 21 percent sits in growth assets, split between international shares (including a 0.69 percent stake in Nvidia), Australasian equities, and a small listed property allocation. Cash and equivalents account for 13 percent. The structure reflects a defensive stance built around government credit and modest equity exposure, designed for capital preservation with minimal volatility.

Over five years the fund has ranked 7th in its category, with annualised returns of 3.0 percent. Its three-year figure of 7.3 percent places it 8th. The recent one-year return of 6.8 percent lifts its standing, though longer-term performance has been more middling. The fee remains its clearest advantage relative to peers.

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