Portfolio risk indicators

Understanding the risk indicator

The risk indicator is designed to help investors understand the uncertainties both for loss and growth that may affect their investment.

Please refer to the table below for the risk indicators for the portfolios offered by the Synergy Investment Programme.

The risk indicator is rated from 1 (low) to 7 (high). The rating reflects how much the value of the portfolio’s assets goes up and down. A higher risk generally means higher potential returns over time, but more ups and downs along the way.

To help you clarify your own attitude to risk, you can seek financial advice or work out your risk profile at www.sorted.org.nz/tools/investor-kickstarter

Note that even the lowest category does not mean a risk free investment, and there are other risks that are not captured by this rating. Please refer to the latest Synergy Service Disclosure Statement for more information about the risks of investing in the Synergy Investment Programme.

The risk indicator is not a guarantee of a portfolio’s future performance. The risk indicator is based on the hypothetical returns for the portfolios for the five years to 30 September 2024. While risk indicators are usually relatively stable, they do change from time to time.

The Synergy Consilium Classic portfolios launched on 1 October 2015.

The Synergy Consilium SRI 30/70, 50/50, 80/20 and 98/2 portfolios launched on 1 April 2017. The Synergy Consilium SRI 20/80, 40/60, 60/40, 70/30 and 90/10 portfolios launched on 1 April 2020.

The Synergy Consilium PIE 30/70, 50/50, 80/20, 98/2 portfolios launched on 1 April 2018. The Synergy Consilium PIE 40/60 and 60/40 portfolios launched on 13 June 2022.

The Synergy MyFiduciary portfolios launched on 1 September 2020.

Where portfolios do not have five full years of performance history, the risk indicator has been calculated by using a combination of actual portfolio returns (where available), the returns of the underlying assets in which each portfolio invests (where available), and appropriate market index returns (where necessary).

Consilium Portfolios

Portfolio Investor suitability Risk indicator 
Classic SRI  PIE

20/80

 Suitable for investors with an investment time horizon of at least 3 years before seeking to spend large amounts of their portfolio. This portfolio has an emphasis on capital preservation and should suit investors able to accept a small amount of volatility. n/a

30/70

 Suitable for investors with an investment time horizon of at least 4 years before seeking to spend large amounts of their portfolio. This portfolio has an emphasis on capital preservation and should suit investors able to accept a small amount of volatility.

40/60

 Suitable for investors with an investment time horizon of at least 5 years before seeking to spend large amounts of their portfolio. This portfolio is targeting moderate portfolio growth and should suit investors able to accept a moderate amount of volatility.

50/50

 Suitable for investors with an investment time horizon of at least 6 years before seeking to spend large amounts of their portfolio. This portfolio is targeting moderate portfolio growth and should suit investors able to accept a moderate amount of volatility.

60/40

 Suitable for investors with an investment time horizon of at least 7 years before seeking to spend large amounts of their portfolio. This portfolio is targeting moderate portfolio growth and should suit investors comfortable accepting a moderate amount of volatility.

70/30

 Suitable for investors with an investment time horizon of at least 9 years before seeking to spend large amounts of their portfolio. This portfolio is targeting above average portfolio growth and should suit investors comfortable accepting a moderate to high amount of volatility. n/a

80/20

 Suitable for investors with an investment time horizon of at least 10 years before seeking to spend large amounts of their portfolio. This portfolio is targeting above average portfolio growth and should suit investors comfortable accepting high volatility.

90/10

 Suitable for investors with an investment time horizon of at least 12 years before seeking to spend large amounts of their portfolio. This portfolio is targeting above average portfolio growth and should suit investors comfortable accepting high volatility. n/a

98/2

 Suitable for investors with an investment time horizon of more than 15 years before seeking to spend large amounts of their portfolio. This portfolio is targeting high portfolio growth and should suit investors comfortable accepting the highest available amount of volatility.

MyFiduciary Portfolios

Portfolio Investor suitability Risk indicator 

25/75

 Suitable for investors with an investment time horizon of at least 2 years before seeking to spend large amounts of their portfolio. This portfolio has an emphasis on capital preservation and should suit investors able to accept a small amount of volatility.

40/60

 Suitable for investors with an investment time horizon of at least 4 years before seeking to spend large amounts of their portfolio. This portfolio is targeting moderate portfolio growth and should suit investors able to accept a moderate amount of volatility.

55/45

 Suitable for investors with an investment time horizon of at least 6 years before seeking to spend large amounts of their portfolio. This portfolio is targeting moderate portfolio growth and should suit investors able to accept a moderate amount of volatility.

70/30

 Suitable for investors with an investment time horizon of at least 9 years before seeking to spend large amounts of their portfolio. This portfolio is targeting above average portfolio growth and should suit investors comfortable accepting a moderate to high amount of volatility.

85/15

 Suitable for investors with an investment time horizon of at least 10 years before seeking to spend large amounts of their portfolio. This portfolio is targeting above average portfolio growth and should suit investors comfortable accepting high volatility.

98/2

 Suitable for investors with an investment time horizon of more than 15 years before seeking to spend large amounts of their portfolio. This portfolio is targeting high portfolio growth and should suit investors comfortable accepting the highest available amount of volatility.