Our domestic equity funds invest in the shares of companies that are listed on the NZ stock exchange (NZX) or the Australian stock exchange (ASX). Many of these companies are household names.
Domestic Fixed Income and Cash
Our domestic fixed income funds hold a variety of New Zealand bonds. The funds invest with banks, the NZ government and government departments, utility companies, other large well-known companies and local councils.
The cash fund tends to invest in a range of bank term deposits or short dated bonds, which are bonds which have less than 12 months before they mature.
We offer both multi-manager and single manager global equity funds. Global equity funds enable investors to gain exposure to a broad range of companies in many different countries and market sectors. The aim is to create a diversified portfolio which provides diversification from the exposures provided purely from the local market.
Because investments overseas are held in foreign currencies, the portfolio is exposed to changes in both the value of the companies and also changes in exchange rates.
A ‘hedged’ fund is designed to reduce the fluctuations that arise from the changes in currency exchange rates and therefore aims to provide returns that are only as a result of changes in the value of the companies invested in. However, using an ‘unhedged’ funds means that your investments held in a foreign currency will provide protection against the New Zealand dollar becoming less valuable. We offer both hedged and unhedged funds so that investors can choose their preference or mix of the two.
Our Global Bond fund is currently managed by Goldman Sachs Asset Management. The fund consists of globally and regionally diverse assets, and invests in bonds from a variety of companies, banks and governments. All foreign currency assets are hedged back to NZ dollars to reduce the fluctuations arising from changes in currency exchange rates.
We offer an Option Fund as an alternative asset class. This fund invests in cash and fixed interest investments, and undertakes a leveraged trading strategy based on selling options on global government bonds.
Alternative funds offer investments which combine traditional assets with alternative instruments such as derivatives and options. The purpose of this is that these assets should behave differently to the other asset classes and therefore provide investors with a more diversified source of returns and risks.
There are three diversified funds available, Conservative, Balanced and Growth. A diversified fund gives investors exposure to a range of investment strategies within one fund. Funds are classified based on the exposure to growth-type assets they hold. As an example, a conservative fund will generally hold more bonds and cash assets with a lesser exposure to equities. In contrast, a growth fund will have a greater exposure to equities and less cash and bonds.