Use the links in this table to find out more information why each fund won its particular sector

The manager's conservative lending criteria (the fund applies a maximum of 50% loan to valuation ratio and a maximum loan repayment to gross income ratio of 30% to all mortgages) reduces the potential risk of capital loss for investors. Fund guidelines require that no loan to any borrower can exceed 2% of the portfolio. This fund has a one-year lock-in period.

The aim of the trust is to provide an attractive and reliable income stream to investors wanting exposure to the real assets in New Zealand. With the divestment of much public infrastructure over the past five years, the available pool of investment assets has expanded sufficiently to provide a reasonably broad range of investment opportunities from which to diversify across.

It has a repeatable and disciplined stock-picking approach using large cap growth models in its portfolio selection. The return of equity and earnings momentum-screening process, concentrate the analysts on the stocks that will make the grade.

Once the investment universe has been narrowed down, qualitative analysis on the securities takes place. The key criteria for stocks in this portfolio include: Value relative to market, and companies which are well managed, financially sound, and have a management focus on shareholder's interests.

The strategy of the fund is to invest in at least 10 companies and no more than 20, with a maximum exposure of 15% to any one company. The exception to this rule is Telecom NZ, where the portfolio may invest up to the index weighting plus 5%. Australian listed stocks, other than those in the NZSE40 Index, are not to represent more than 40% of the total portfolio.

As a value-based, bottom-up manager, Templeton ignores index composition when constructing stock portfolios and base their holdings on a buy-list of "bargain" stocks drawn from the analysts' coverage of more than 2000 stocks.

"Value" in the Templeton philosophy means identifying those companies selling at the greatest discount to future intrinsic value, which over time are expected to produce the greatest share price returns with minimal risk. Templeton have built up an enviable record in stock selection and portfolio performance and are regarded as one of the premier international bottom-up 'stock pickers'.

By investing in the debt of NZ corporate companies, many of which have below investment grade (BBB-) credit ratings, the fund aims to achieve a higher running yield than would be possible with comparable maturity Government Stock issues. Note that the investment guidelines allow the manager to invest in subordinated debt.

As with any investment the issue for the manager to decide here is whether the return offered over and above Government Stock is adequate compensation for the additional credit and liquidity risk which it brings.

The composition and philosophy of this fund doesn't make it a capital stable product and as such we have placed the SuperPlus Income Fund in with other fixed interest oriented superannuation vehicles.

BT aims to retain the ability to move quickly and therefore relies on the marketability of securities confining its global bond portfolio investments to the more liquid government bonds, bank bills or other similar international issues. Futures and options are used as an alternative to physical investment, often to hedge downside risk.

The key forums for reviewing and updating asset allocation and sector strategies are the monthly asset allocation meeting which, updates strategy in the light of current and forecast market and economic events.

The monthly review incorporates a top-down assessment of short and medium term economic prospects and reviews market expectations and the key risks impacting upon those assumptions. The final output, the tactical asset allocation strategy, is based on relative value between asset classes (risk adjusted) based on historic norms.

Sector strategies are implemented using the feeder fund concept to achieve exposures through NZ Funds Management's range of specialist funds.

The basic cornerstone inputs into the process are forecast investment returns and ranges for each sector based on both 3 and 6 month tactical time horizons. In between times, these forecasts are reviewed and adjusted where appropriate at weekly investment team meetings.

The NZ investment team adds a NZ overlay to the international asset allocation decisions to determine under/over weightings versus pre-determined strategic asset class benchmarks. Specific asset exposures are obtained on a feed-in basis through the following routes: NZ Fixed Interest - (NZ Bond Fund), Int'l Bonds - (BT NZ- Intl Bond Fund), Intl Equities - (BT NZ-Intl Equity Fund), NZ Equities - (direct), Cash - (direct).