Milford Active Growth Fund Review: Performance & Fees

Few numbers in investing grab attention quite like a 10% return target. The Milford Active Growth Fund, managed by Milford Asset Management (fund manager), targets exactly that — a 10% annual return after base fees over a 7-year horizon. But for Irish investors, the question is whether the fee structure and the fund’s New Zealand domicile make sense for a portfolio built in Ireland, especially when the fine print on performance fees and the actual risk profile are laid bare.

Fund objective: 10% annual return after base fee, before tax and performance fee, over 7 years · Launch date: 1 October 2007 · Minimum investment: Refer to Milford or platform documentation · Fee structure: Base fund fee plus performance fee (details below)

The table below summarizes the fund’s key facts.

Is Milford Active Growth fund good?

The short answer depends on what you compare it to and how much weight you put on fees versus headline returns. The fund’s stated objective — 10% annual return after base fees — is ambitious, but the actual outcome for an investor depends on the performance fee, the 7-year lock-in mindset, and the fund’s asset allocation.

How does the fund’s 10% target return compare to alternatives?

• The fund targets 10% p.a. after base fee but before tax and performance fee, according to Milford Asset Management (fund manager).
• In 2024, the fund returned 15.93%, beating the market average of 13.65% for its comparator set (Mindful Money).
• By contrast, the 2025 return (year-to-date) stands at 5.3%, showing the volatility inherent in growth-oriented strategies (Mindful Money).

What do expert reviews say?

• Independent analysis from MoneyHub NZ (independent financial comparison site) notes that the historical performance fee of the Active Growth Fund is 0.38% per annum, which can eat into headline returns.
• Sorted Smart Investor (NZ government-backed financial comparison tool) shows total combined fees of 1.05% and performance-based fees of 0.00% in its comparison view, suggesting the performance fee is not always triggered.

What is the return of Milford Investment Fund?

Performance data is available from multiple sources, but the key nuance is that returns are quoted after the base fee and before tax and the performance fee. That means the net return you actually receive can differ materially from the headline number.

What is the historical performance?

• 2024 annual return: 15.93% (Mindful Money)
• 2025 year-to-date return: 5.3% (Mindful Money)
• June 2026 monthly return (latest fact sheet): 1.82% after fees, gross of tax (Milford Asset Management (fund manager) — monthly fact sheet)
• Past performance is not indicative of future results, as with all managed funds.

How is the return calculated?

• Returns are reported after the base management fee (1.05%) but before tax and the performance fee (15% of returns above the benchmark, subject to a high-watermark structure) (Milford Asset Management).
• The fund’s latest fact sheet shows total fund fees of 1.25%, including an estimated performance fee, which gives a more realistic picture of the total cost (Milford Asset Management — fact sheet).

What this means: The headline return of 10% is a target, not a guarantee, and the actual net return to investors can be lower after performance fees kick in during strong years.

Which Milford fund is best?

Milford offers several funds, and the right choice depends on your risk tolerance and investment horizon. The Active Growth Fund sits at the higher end of the risk spectrum compared to the more conservative Balanced Fund.

How does the Active Growth Fund compare to the Milford Balanced Fund?

• Active Growth targets 10% annual return; Balanced targets a lower, more moderate return with less volatility.
• Growth funds have higher volatility and potential for larger losses during downturns; balanced funds offer more stability.
• The fund allocation in the PDS shows 78% growth assets and 22% income assets, confirming the growth orientation (InvestNow-hosted Milford PDS).

What are the key differences in risk and return?

Two funds, one trade-off: higher potential returns come with higher volatility and a longer recommended holding period.

The implication for Irish investors: if you can tolerate short-term drawdowns and have a 7-year horizon, the Active Growth Fund may suit. If you need more stability, the Balanced Fund is likely the better fit.

What are the downsides of growth funds?

Growth funds like the Milford Active Growth Fund come with a distinct set of risks that every investor should weigh before committing capital.

What are the risks of investing in growth funds?

• Higher volatility: Growth funds can experience significant drawdowns during market corrections. The fund’s allocation to equities (78% growth assets) means it is sensitive to market cycles (InvestNow-hosted Milford PDS).
• Performance fees: The 15% performance fee above the benchmark, with a high-watermark structure, means the manager takes a share of outperformance, which can reduce net returns to investors (Milford Asset Management).
• Long-term commitment: The minimum recommended timeframe of 7 years means this is not a suitable vehicle for short-term cash needs (InvestNow-hosted Milford PDS).

What are the pros and cons?

Where to invest 50,000 euros in Ireland?

For Irish investors with a lump sum of €50,000, the Milford Active Growth Fund is one option among many, but its suitability depends on your overall portfolio, risk tolerance, and investment horizon. For broader market context, see our S&P 500 Compare: Performance vs Alternatives.

Is the Milford Active Growth Fund suitable for a lump sum like 50,000 euros?

• The fund’s minimum investment varies by platform, and the 7-year recommended timeframe means this should be a long-term allocation, not a short-term parking spot (Milford Asset Management).
• Diversification across different fund types (growth, balanced, bonds) is generally recommended for a lump sum of this size, rather than allocating the full amount to a single high-growth fund.
• Irish investors should also consider the tax treatment of offshore funds and the currency risk associated with a New Zealand-domiciled fund.

What are alternative investment options in Ireland?

• Irish-domiciled ETFs and index funds offer a more tax-efficient structure for domestic investors.
• Balanced funds from Irish providers (e.g., Irish Life, Zurich) provide a lower-cost alternative with less currency risk.
• Direct equity investment in a diversified portfolio of global stocks is another option for experienced investors.

Why this matters: For a €50,000 lump sum, the difference between a 1.05% fee and a 0.5% fee amounts to €275 per year, and the performance fee can add another 0.38% or more in strong years. Over 7 years, that gap compounds significantly.

Milford Active Growth Fund vs Milford Balanced Fund: Side-by-side comparison

Two funds from the same manager, but designed for different risk profiles. Here’s how they stack up.

The pattern: The Active Growth Fund is designed for investors who can tolerate higher volatility in exchange for higher potential returns. The Balanced Fund is for those who want growth but with a smoother ride.

Specifications at a glance

Six key specs that define the fund’s structure and cost profile.

What this means: The fund is heavily weighted toward international equities, which provides diversification but also exposes Irish investors to currency fluctuations between the NZD and EUR.

What’s clear and what’s not

The pattern: Confirmed facts are well-documented, but investors should verify current figures due to potential changes.

What the experts say

The fund’s objective is to provide annual returns of 10% after fees but before tax. This is a clear, measurable target that gives investors a benchmark to evaluate performance.

Milford Asset Management (fund manager) — official fund description

Sorted Smart Investor shows the fund’s total combined fees at 1.05%, with performance-based fees of 0.00% in its comparison view, meaning the performance fee is not always charged.

Sorted Smart Investor (NZ government-backed financial comparison tool) — fee analysis

The 2024 annual return of 15.93% significantly outperformed the market average of 13.65%, demonstrating the fund’s ability to capture upside in strong markets.

Mindful Money (NZ fund comparison platform) — performance data

Investors should be aware that the historical performance fee of the Active Growth Fund is 0.38% per annum, which can reduce net returns in strong years.

MoneyHub NZ (independent financial comparison site) — fee analysis

The upshot: The fund has delivered strong returns, but the fee structure — particularly the performance fee — means that the manager captures a share of the upside. For Irish investors, the NZ domicile adds another layer of complexity that needs to be factored into the decision.

Summary: Is the Milford Active Growth Fund right for you?

The Milford Active Growth Fund is a well-structured, high-growth fund with a clear target and a track record of outperforming its benchmark. But the combination of a 1.05% base fee, a 15% performance fee, and a 7-year minimum timeframe means it is not a fit for every investor. For Irish investors with a long-term horizon and a tolerance for volatility, it could be a valuable component of a diversified portfolio — but only if the NZ-domicile complexity is properly managed. For the risk-averse or those needing liquidity within 5 years, the trade-off between potential returns and the cost structure leans against it.

Frequently asked questions