Shielded Growth Fund


Shielded Growth Graph
Shielded Growth Fund Growth And Income

Investment objective

The fund aims to provide long-term capital gains by investing predominantly in growth assets, while partially shielding the fund against some of the short-term downside risks.

This is achieved by using a strategy which will typically involve, but is not limited to, holding put options which provide protection on around 30% of any fund losses above a 10% fall in global share markets. The level of protection will typically vary between 20% and 50% of the fund, depending on our view of a range of factors such as cost, market volatility and risk.

It aims to achieve returns - after fees but before tax - of at least 4% per year above inflation over any 7-year period, after the cost of the options strategy.

There will be significant movements up and down in the value of the fund, but less significant short-term downward movements than the High Growth Fund.

Investment strategy

The fund invests predominantly in growth assets and uses options contracts to partially ‘shield’ the fund against (limit the impact of) more significant short-term downward movements of the value of the fund’s investments.

Risk indicator

The risk indicator is rated from 1 (low) to 7 (high).

The rating reflects how much the value of the fund’s assets goes up and down – the 'volatility'. A higher risk generally means higher potential returns over time, but more ups and downs along the way.

While risk indicators are usually quite stable, they do shift from time to time. Check the most recent risk indicator for this fund in the latest quarterly fund update.

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Risk level: