Performance

Core Cash Portfolio

Details

Strategy objective Strategy summary Risk category Minimum suggested investment timeframe
To provide a source of capital. Anticipated to mainly hold cash and cash equivalents. 1 month+

Performance

Performance since inception (28 February 2008) to 31 May 2021
Advised Portfolios Core Cash Performance Graph Advised Portfolios Core Cash Performance Table

Core Cash Portfolio

  • Returns are stated after Portfolio fees and expenses, but before any advisory fees or investor tax. Past performance is not necessarily an indication of future returns.
  • Cumulative returns.

Maximum Decline and Volatility

  • Returns should be looked at in conjunction with the level of risk associated with an investment. 'Maximum decline' is a measure of risk. It represents the largest decline in value in the previous 12 months or since inception of the Portfolio if it has not existed for 12 months.
  • This is the annualised standard deviation calculated from weekly returns of the Portfolio over the 5 years ending 31 March 2021. For more details on the Portfolio’s Maximum Decline and Volatility please contact NZ Funds.

Note: Rounding may affect some numbers.

Portfolios

Core Cash Portfolio

Complete Portfolio as at 20 April 2021
Advised Portoflios Core Cash Portfolio Table


1. The yield is not the actual return of the Portfolio, nor is it a projection or forecast. Details of the yield calculation are available on request from NZ Funds.
2. Total economic exposure represents the total economic value of a Portfolio, which is the net asset value of the Portfolio adjusted for the effect of direct derivative positions taken by the Portfolio and indirect derivative positions taken other than via a fund including hedge funds. For more details on economic exposure, see the Other Material Information document on the Offer Register at www.companiesoffice.govt.nz/disclose.
Note: Rounding may affect any subtotals and totals.

Overview

Investment category Cash
Risk & volatility Please see the NZ Funds Advised Portfolio Service Product Disclosure Statement or the latest Fund Update for information on risk.
Withdrawal restriction The Portfolio has no withdrawal restrictions.
Further information Further information is contained in the NZ Funds Advised Portfolio Service Product Disclosure Statement.

Core Income Portfolio

Review

For the month of May 2021

The focus for fixed income markets at present can be summed up in one word — ‘transitory’. Is the current inflation that we are seeing transitory and simply reflecting the post-COVID bounce back?

The chart shows the personal consumption expenditure core price index (PCE) measure of inflation. This is the Federal Reserve’s favoured inflation metric and it recently moved up to 3.1% which is the highest level since 1992. Throughout the late 1990s and early 2000s, inflation rose sharply several times to above 2% but ultimately it proved to be transitory and quickly faded.

If the same pattern is repeated this time, then annual inflation will be at the peak and it will fall from here and interest rates do not need to go higher. We continue to be of the view that the tailwinds are stronger this time and that inflation will continue to remain higher than many expect and, in turn, interest rates need to be higher than they currently are.

In the short term, this uncertainty regarding the direction of inflation is keeping interest rates contained within a tight trading range. This has been mildly negative for the Income Category as we remain positioned for interest rates to continue to head higher over the remainder of the year.

Details

Strategy objective Strategy summary Risk category Minimum suggested investment timeframe
To provide exposure to income assets. Anticipated to mainly hold New Zealand and Australian bonds. 2 years+

Performance

Performance since inception (23 July 2008) to 31 May 2021
Core Income Performance Graph Core Income Performance Table

Core Income Portfolio

  • Returns are stated after Portfolio fees and expenses, but before any advisory fees or investor tax. Past performance is not necessarily an indication of future returns.
  • Cumulative returns.

Maximum Decline and Volatility

  • Returns should be looked at in conjunction with the level of risk associated with an investment. 'Maximum decline' is a measure of risk. It represents the largest decline in value in the previous 12 months or since inception of the Portfolio if it has not existed for 12 months.
  • This is the annualised standard deviation calculated from weekly returns of the Portfolio over the 5 years ending 31 March 2021. For more details on the Portfolio’s Maximum Decline and Volatility please contact NZ Funds.

Note: Rounding may affect some numbers.

Portfolios

Core Income Portfolio

Complete Portfolio as at 17 May 2021
Core Income Portfolio Table


1. The yield is not the actual return of the Portfolio, nor is it a projection or forecast. Details of the yield calculation are available on request from NZ Funds.
2. Credit default swaps notional value is currently $157,033,672.
3. Total economic exposure represents the total economic value of a Portfolio, which is the net asset value of the Portfolio adjusted for the effect of direct derivative positions taken by the Portfolio and indirect derivative positions taken other than via a fund including hedge funds. For more details on economic exposure, see the Other Material Information document on the Offer Register at www.companiesoffice.govt.nz/disclose.
Note: Rounding may affect any subtotals and totals.

Overview

Investment category Income
Risk & volatility Please see the NZ Funds Advised Portfolio Service Product Disclosure Statement (PDS) or the latest Fund Update for information on risk.
Withdrawal restriction The Portfolio has a 21-day withdrawal notice period.
Further information Further information is contained in the NZ Funds Advised Portfolio Service Product Disclosure Statement.

Global Income Portfolio

Review

For the month of May 2021

The focus for fixed income markets at present can be summed up in one word — ‘transitory’. Is the current inflation that we are seeing transitory and simply reflecting the post-COVID bounce back?

The chart shows the personal consumption expenditure core price index (PCE) measure of inflation. This is the Federal Reserve’s favoured inflation metric and it recently moved up to 3.1% which is the highest level since 1992. Throughout the late 1990s and early 2000s, inflation rose sharply several times to above 2% but ultimately it proved to be transitory and quickly faded.

If the same pattern is repeated this time, then annual inflation will be at the peak and it will fall from here and interest rates do not need to go higher. We continue to be of the view that the tailwinds are stronger this time and that inflation will continue to remain higher than many expect and, in turn, interest rates need to be higher than they currently are.

In the short term, this uncertainty regarding the direction of inflation is keeping interest rates contained within a tight trading range. This has been mildly negative for the Income Category as we remain positioned for interest rates to continue to head higher over the remainder of the year.

Details

Strategy objective Strategy summary Risk category Minimum suggested investment timeframe
To provide exposure to income assets. Anticipated to mainly hold international bonds. 2 years+

Performance

Performance since inception (31 October 2008) to 31 May 2021
Global Income Performance Graph Global Income Performance Table

Global Income Portfolio

  • Returns are stated after Portfolio fees and expenses, but before any advisory fees or investor tax. Past performance is not necessarily an indication of future returns.
  • Cumulative returns.

Maximum Decline and Volatility

  • Returns should be looked at in conjunction with the level of risk associated with an investment. 'Maximum decline' is a measure of risk. It represents the largest decline in value in the previous 12 months or since inception of the Portfolio if it has not existed for 12 months.
  • This is the annualised standard deviation calculated from weekly returns of the Portfolio over the 5 years ending 31 March 2021. For more details on the Portfolio’s Maximum Decline and Volatility please contact NZ Funds.

Note: Rounding may affect some numbers.

Portfolios

Global Income Portfolio

Complete Portfolio as at 17 May 2021
Global Income Insights Table


1. The yield is not the actual return of the Portfolio, nor is it a projection or forecast. Details of the yield calculation are available on request from NZ Funds.
2. Credit default swaps notional value is currently $155,193,689.
3. Total economic exposure represents the total economic value of a Portfolio, which is the net asset value of the Portfolio adjusted for the effect of direct derivative positions taken by the Portfolio and indirect derivative positions taken other than via a fund including hedge funds. For more details on economic exposure, see the Other Material Information document on the Offer Register at www.companiesoffice.govt.nz/disclose.
Note: Rounding may affect any subtotals and totals.

Overview

Investment category Income
Risk & volatility Please see the NZ Funds Advised Portfolio Service Product Disclosure Statement or the latest Fund Update for information on risk.
Withdrawal restriction The Portfolio has a 21-day withdrawal notice period.
Further information Further information is contained in the NZ Funds Advised Portfolio Service Product Disclosure Statement.

Core Inflation Portfolio

Review

For the month of May 2021

Inflation Category returns were slightly negative in May, driven by relatively weak share performance and continued negative returns from the United States interest rates position.

The New Zealand Stock Exchange had a weak month in May, down -4.3%. Clients have exposure to this market via our dividend and growth equities strategy which negatively impacted performance during the month. While this strategy outperformed the New Zealand share market, it was still negative with Fisher and Paykel being a key contributor with negative share price movement following its full-year results.

Yields on United States government bonds continued to decline in May which is negative for our portfolios. The market continues to balance the risk of higher and more persistent inflation which will push yields higher versus profit-taking on a trade that has generated strong returns over the past six months. We remain committed to this position and are confident the trade will continue to generate returns.

Offsetting some of these losses was a positive return in the Absolute Return Strategy in May. The returns in this portfolio were driven by strong returns in its international shares allocation, in particular from an overweight position in a commercial fertiliser manufacturer called OCI which is benefitting from strong agricultural markets. The international shares allocation in this strategy is hedged through a short technology exposure which helped manage risk from equity sector rotation movements through the month.

Details

Strategy objective Strategy summary Risk category Minimum suggested investment timeframe
To mitigate the impact of inflation on your investment over the medium and/or long term. Anticipated to mainly hold New Zealand, Australian and international bonds, and New Zealand and Australian shares. 5 years+

Performance

Performance since inception (31 October 2008) to 31 May 2021
Core Inflation Performance Graph Core Inflation Performance Table

Core Inflation Portfolio

  • Returns are stated after Portfolio fees and expenses, but before any advisory fees or investor tax. Past performance is not necessarily an indication of future returns.
  • Cumulative returns.

Maximum Decline and Volatility

  • Returns should be looked at in conjunction with the level of risk associated with an investment. 'Maximum decline' is a measure of risk. It represents the largest decline in value in the previous 12 months or since inception of the Portfolio if it has not existed for 12 months.
  • This is the annualised standard deviation calculated from weekly returns of the Portfolio over the 5 years ending 31 March 2021. For more details on the Portfolio’s Maximum Decline and Volatility please contact NZ Funds.

Note: Rounding may affect some numbers.

Portfolios

Core Inflation Portfolio

Complete Portfolio as at 17 May 2021
Core Inflation Portfolio Table


1. Where a strategy is shown, the asset class reflects the predominant assets in the strategy. The strategy may include other assets including cash.
2. The yield calculation represents an estimate of the yield on the Portfolio, calculated using the most recent information provided by the external investment managers involved in managing the Portfolio, hedged back to New Zealand dollars where appropriate. It is not calculated 'as at' any particular date as different external investment managers provide data at varying dates. As a result, in some instances the yields may lag the date of this Portfolio summary. The yield is not the actual return on the Portfolio, nor is it a projection or forecast. The Portfolio's return could be less than the Portfolio's yield. Details of the yield calculation are available on request from NZ Funds.
3. As at the date of the security listings, the majority of the assets of the Strategy were held in this asset class. This Strategy may also hold assets in other asset classes.
4. Total economic exposure represents the total economic value of a Portfolio, which is the net asset value of the Portfolio adjusted for the effect of direct derivative positions taken by the Portfolio and indirect derivative positions taken other than via a fund including hedge funds. For more details on economic exposure, see the Other Material Information document on the Offer Register at www.companiesoffice.govt.nz/disclose.
Note: Rounding may affect any subtotals and totals.

Overview

Investment category Inflation
Risk & volatility Please see the NZ Funds Advised Portfolio Service Product Disclosure Statement or the latest Fund Update for information on risk.
Withdrawal restriction The Portfolio has a 21-day withdrawal notice period.
Further information Further information is contained in the NZ Funds Advised Portfolio Service Product Disclosure Statement.

Property Inflation Portfolio

Review

For the month of May 2021

Inflation Category returns were slightly negative in May, driven by relatively weak share performance and continued negative returns from the United States interest rates position.

The New Zealand Stock Exchange had a weak month in May, down -4.3%. Clients have exposure to this market via our dividend and growth equities strategy which negatively impacted performance during the month. While this strategy outperformed the New Zealand share market, it was still negative with Fisher and Paykel being a key contributor with negative share price movement following its full-year results.

Yields on United States government bonds continued to decline in May which is negative for our portfolios. The market continues to balance the risk of higher and more persistent inflation which will push yields higher versus profit-taking on a trade that has generated strong returns over the past six months. We remain committed to this position and are confident the trade will continue to generate returns.

Offsetting some of these losses was a positive return in the Absolute Return Strategy in May. The returns in this portfolio were driven by strong returns in its international shares allocation, in particular from an overweight position in a commercial fertiliser manufacturer called OCI which is benefitting from strong agricultural markets. The international shares allocation in this strategy is hedged through a short technology exposure which helped manage risk from equity sector rotation movements through the month.

Details

Strategy objective Strategy summary Risk category Minimum suggested investment timeframe
To mitigate the impact of inflation on your investment over the medium and/or long term. Anticipated to mainly hold New Zealand, Australian and international bonds, and property and infrastructure shares. 5 years+

Performance

Performance since inception (31 October 2008) to 31 May 2021
Property Inflation Performance Graph Property Inflation Performance Table

Property Inflation Portfolio

  • Returns are stated after Portfolio fees and expenses, but before any advisory fees or investor tax. Past performance is not necessarily an indication of future returns.li>
  • Cumulative returns.

Maximum Decline and Volatility

  • Returns should be looked at in conjunction with the level of risk associated with an investment. 'Maximum decline' is a measure of risk. It represents the largest decline in value in the previous 12 months or since inception of the Portfolio if it has not existed for 12 months.
  • This is the annualised standard deviation calculated from weekly returns of the Portfolio over the 5 years ending 31 March 2021. For more details on the Portfolio’s Maximum Decline and Volatility please contact NZ Funds.

Note: Rounding may affect some numbers.

Portfolios

Property Inflation Portfolio

Complete Portfolio as at 17 May 2021
Property Inflation Portfolio Table


1. Where a strategy is shown, the asset class reflects the predominant assets in the strategy. The strategy may include other assets including cash.
2. The yield calculation represents an estimate of the yield on the Portfolio, calculated using the most recent information provided by the external investment managers involved in managing the Portfolio, hedged back to New Zealand dollars where appropriate. It is not calculated 'as at' any particular date as different external investment managers provide data at varying dates. As a result, in some instances the yields may lag the date of this Portfolio summary. The yield is not the actual return on the Portfolio, nor is it a projection or forecast. The Portfolio's return could be less than the Portfolio's yield. Details of the yield calculation are available on request from NZ Funds.
3. As at the date of the security listings, the majority of the assets of the Strategy were held in this asset class. This Strategy may also hold assets in other asset classes.
4. Total economic exposure represents the total economic value of a Portfolio, which is the net asset value of the Portfolio adjusted for the effect of direct derivative positions taken by the Portfolio and indirect derivative positions taken other than via a fund including hedge funds. For more details on economic exposure, see the Other Material Information document on the Offer Register at www.companiesoffice.govt.nz/disclose.
Note: Rounding may affect any subtotals and totals.

Overview

Investment category Inflation
Risk & volatility Please see the NZ Funds Advised Portfolio Service Product Disclosure Statement or the latest Fund Update for information on risk.
Withdrawal restriction The Portfolio has a 21-day withdrawal notice period.
Further information Further information is contained in the NZ Funds Advised Portfolio Service Product Disclosure Statement.

Equity Inflation Portfolio

Review

For the month of May 2021

Inflation Category returns were slightly negative in May, driven by relatively weak share performance and continued negative returns from the United States interest rates position.

The New Zealand Stock Exchange had a weak month in May, down -4.3%. Clients have exposure to this market via our dividend and growth equities strategy which negatively impacted performance during the month. While this strategy outperformed the New Zealand share market, it was still negative with Fisher and Paykel being a key contributor with negative share price movement following its full-year results.

Yields on United States government bonds continued to decline in May which is negative for our portfolios. The market continues to balance the risk of higher and more persistent inflation which will push yields higher versus profit-taking on a trade that has generated strong returns over the past six months. We remain committed to this position and are confident the trade will continue to generate returns.

Offsetting some of these losses was a positive return in the Absolute Return Strategy in May. The returns in this portfolio were driven by strong returns in its international shares allocation, in particular from an overweight position in a commercial fertiliser manufacturer called OCI which is benefitting from strong agricultural markets. The international shares allocation in this strategy is hedged through a short technology exposure which helped manage risk from equity sector rotation movements through the month.

Details

Strategy objective Strategy summary Risk category Minimum suggested investment timeframe
To mitigate the impact of inflation on your investment over the medium and/or long term. Anticipated to mainly hold New Zealand, Australian and international bonds, and international shares. 5 years+

Performance

Performance since inception (31 October 2008) to 31 May 2021
Equity Inflation Performance Graph Equity Inflation Performance Table

Equity Inflation Portfolio

  • Returns are stated after Portfolio fees and expenses, but before any advisory fees or investor tax. Past performance is not necessarily an indication of future returns.
  • Cumulative returns.

Maximum Decline and Volatility

  • Returns should be looked at in conjunction with the level of risk associated with an investment. 'Maximum decline' is a measure of risk. It represents the largest decline in value in the previous 12 months or since inception of the Portfolio if it has not existed for 12 months.
  • This is the annualised standard deviation calculated from weekly returns of the Portfolio over the 5 years ending 31 March 2021. For more details on the Portfolio’s Maximum Decline and Volatility please contact NZ Funds.

Note: Rounding may affect some numbers.

Portfolios

Equity Inflation Portfolio

Complete Portfolio as at 17 May 2021
Equity Inflation Portfolio Table


1. Where a strategy is shown, the asset class reflects the predominant assets in the strategy. The strategy may include other assets including cash.
2. The yield calculation represents an estimate of the yield on the Portfolio, calculated using the most recent information provided by the external investment managers involved in managing the Portfolio, hedged back to New Zealand dollars where appropriate. It is not calculated 'as at' any particular date as different external investment managers provide data at varying dates. As a result, in some instances the yields may lag the date of this Portfolio summary. The yield is not the actual return on the Portfolio, nor is it a projection or forecast. The Portfolio's return could be less than the Portfolio's yield. Details of the yield calculation are available on request from NZ Funds.
3. Swaptions notional value is currently $58,451,068.
4. As at the date of the security listings, the majority of the assets of the Strategy were held in this asset class. This Strategy may also hold assets in other asset classes.
5. Total economic exposure represents the total economic value of a Portfolio, which is the net asset value of the Portfolio adjusted for the effect of direct derivative positions taken by the Portfolio and indirect derivative positions taken other than via a fund including hedge funds. For more details on economic exposure, see the Other Material Information document on the Offer Register at www.companiesoffice.govt.nz/disclose.
Note: Rounding may affect any subtotals and totals.

Overview

Investment category Inflation
Risk & volatility Please see the NZ Funds Advised Portfolio Service Product Disclosure Statement or the latest Fund Update for information on risk.
Withdrawal restriction The Portfolio has a 21-day withdrawal notice period.
Further information Further information is contained in the NZ Funds Advised Portfolio Service Product Disclosure Statement.

Core Growth Portfolio

Review

For the month of May 2021

Growth Category returns were negative in May, primarily due to weak New Zealand share market performance, poor share price performance from some international share positions, and a negative movement in United States government bond yields.

The New Zealand Stock Exchange had a weak month in May where it was down -1.17%. Clients have exposure to this market via our Dividend and Growth shares strategy which negatively impacted performance during the month. This strategy however outperformed the New Zealand share market move due to its exposure to the Australian share market which returned 2.34% and an underweight position in a2 Milk which had a share price fall of 23%.

Weak international share performance was primarily driven from negative share price performances in Uber and Galaxy Digital. Uber is facing short-term pressure from problems it has hiring enough drivers for its cars as the United States comes out of lockdown. We see this as a transitory problem that will be alleviated when United States employment subsidies continue to roll off and currently idle workers come back to the workforce.

Galaxy Digital, which provides services to the cryptocurrency industry, had a weak month due to the cryptocurrency market sell-off and volatility. However, the Growth Category made strong returns in May on its underlying cryptocurrency exposure, primarily through Ethereum.

Yields on United States government bonds continued to decline in May which is negative for our portfolios. The market continues to balance the risk of higher and more persistent inflation which will push yields higher versus profit-taking on a trade that has generated strong returns over the past six months. We remain committed to this position and are confident the trade will continue to generate returns.

Details

Strategy objective Strategy summary Risk category Minimum suggested investment timeframe
To grow your investment over the long term. Anticipated to mainly hold hedge funds and/or international shares. 10 years+

Performance

Performance since inception (31 October 2008) to 31 May 2021
Core Growth Performance Graph Core Growth Performance Table

Core Growth Portfolio

  • Returns are stated after Portfolio fees and expenses, but before any advisory fees or investor tax. Past performance is not necessarily an indication of future returns.
  • Cumulative returns.

Maximum Decline and Volatility

  • Returns should be looked at in conjunction with the level of risk associated with an investment. 'Maximum decline' is a measure of risk. It represents the largest decline in value in the previous 12 months or since inception of the Portfolio if it has not existed for 12 months.
  • This is the annualised standard deviation calculated from weekly returns of the Portfolio over the 5 years ending 31 March 2021. For more details on the Portfolio’s Maximum Decline and Volatility please contact NZ Funds.

Note: Rounding may affect some numbers.

Portfolios

Core Growth Portfolio

Complete Portfolio as at 17 May 2021
Core Growth Portfolio Table


1. Where a strategy is shown, the asset class reflects the predominant assets in the strategy. The strategy may include other assets including cash.
2. The yield calculation represents an estimate of the yield on the Portfolio, calculated using the most recent information provided by the external investment managers involved in managing the Portfolio, hedged back to New Zealand dollars where appropriate. It is not calculated 'as at' any particular date as different external investment managers provide data at varying dates. As a result, in some instances the yields may lag the date of this Portfolio summary. The yield is not the actual return on the Portfolio, nor is it a projection or forecast. The Portfolio's return could be less than the Portfolio's yield. Details of the yield calculation are available on request from NZ Funds.
3. Total economic exposure represents the total economic value of a Portfolio, which is the net asset value of the Portfolio adjusted for the effect of direct derivative positions taken by the Portfolio and indirect derivative positions taken other than via a fund including hedge funds. For more details on economic exposure, see the Other Material Information document on the Offer Register at www.companiesoffice.govt.nz/disclose.
Note: Rounding may affect any subtotals and totals.

Overview

Investment category Growth
Risk & volatility Please see the NZ Funds Advised Portfolio Service Product Disclosure Statement or the latest Fund Update for information on risk.
Withdrawal restriction The Portfolio has a 21-day withdrawal notice period.
Further information Further information is contained in the NZ Funds Advised Portfolio Service Product Disclosure Statement.

Global Equity Growth Portfolio

Review

For the month of May 2021

Growth Category returns were negative in May, primarily due to weak New Zealand share market performance, poor share price performance from some international share positions, and a negative movement in United States government bond yields.

The New Zealand Stock Exchange had a weak month in May where it was down -1.17%. Clients have exposure to this market via our Dividend and Growth shares strategy which negatively impacted performance during the month. This strategy however outperformed the New Zealand share market move due to its exposure to the Australian share market which returned 2.34% and an underweight position in a2 Milk which had a share price fall of 23%.

Weak international share performance was primarily driven from negative share price performances in Uber and Galaxy Digital. Uber is facing short-term pressure from problems it has hiring enough drivers for its cars as the United States comes out of lockdown. We see this as a transitory problem that will be alleviated when United States employment subsidies continue to roll off and currently idle workers come back to the workforce.

Galaxy Digital, which provides services to the cryptocurrency industry, had a weak month due to the cryptocurrency market sell-off and volatility. However, the Growth Category made strong returns in May on its underlying cryptocurrency exposure, primarily through Ethereum.

Yields on United States government bonds continued to decline in May which is negative for our portfolios. The market continues to balance the risk of higher and more persistent inflation which will push yields higher versus profit-taking on a trade that has generated strong returns over the past six months. We remain committed to this position and are confident the trade will continue to generate returns.

Details

Strategy objective Strategy summary Risk category Minimum suggested investment timeframe
To grow your investment over the long term. Anticipated to mainly hold international shares. 10 years+

Performance

Performance since inception (31 October 2008) to 31 May 2021
Global Equity Growth Performance Graph Global Equity Growth Performance Table

Global Equity Growth Portfolio

  • Returns are stated after Portfolio fees and expenses, but before any advisory fees or investor tax. Past performance is not necessarily an indication of future returns.
  • Cumulative returns.

Maximum Decline and Volatility

  • Returns should be looked at in conjunction with the level of risk associated with an investment. 'Maximum decline' is a measure of risk. It represents the largest decline in value in the previous 12 months or since inception of the Portfolio if it has not existed for 12 months.
  • This is the annualised standard deviation calculated from weekly returns of the Portfolio over the 5 years ending 31 March 2021. For more details on the Portfolio’s Maximum Decline and Volatility please contact NZ Funds.

Note: Rounding may affect some numbers.

Portfolios

Global Equity Growth Portfolio

Complete Portfolio as at 17 May 2021
Global Equity Growth Portfolio Table


1. Where a strategy is shown, the asset class reflects the predominant assets in the strategy. The strategy may include other assets including cash.
2. The yield calculation represents an estimate of the yield on the Portfolio, calculated using the most recent information provided by the external investment managers involved in managing the Portfolio, hedged back to New Zealand dollars where appropriate. It is not calculated 'as at' any particular date as different external investment managers provide data at varying dates. As a result, in some instances the yields may lag the date of this Portfolio summary. The yield is not the actual return on the Portfolio, nor is it a projection or forecast. The Portfolio's return could be less than the Portfolio's yield. Details of the yield calculation are available on request from NZ Funds.
3. Total economic exposure represents the total economic value of a Portfolio, which is the net asset value of the Portfolio adjusted for the effect of direct derivative positions taken by the Portfolio and indirect derivative positions taken other than via a fund including hedge funds. For more details on economic exposure, see the Other Material Information document on the Offer Register at www.companiesoffice.govt.nz/disclose.
Note: Rounding may affect any subtotals and totals.

Overview

Investment category Growth
Risk & volatility Please see the NZ Funds Advised Portfolio Service Product Disclosure Statement or the latest Fund Update for information on risk.
Withdrawal restriction The Portfolio has a 21-day withdrawal notice period.
Further information Further information is contained in the NZ Funds Advised Portfolio Service Product Disclosure Statement.

Dividend and Growth Portfolio

Review

For the month of May 2021

Growth Category returns were negative in May, primarily due to weak New Zealand share market performance, poor share price performance from some international share positions, and a negative movement in United States government bond yields.

The New Zealand Stock Exchange had a weak month in May where it was down -1.17%. Clients have exposure to this market via our Dividend and Growth shares strategy which negatively impacted performance during the month. This strategy however outperformed the New Zealand share market move due to its exposure to the Australian share market which returned 2.34% and an underweight position in a2 Milk which had a share price fall of 23%.

Weak international share performance was primarily driven from negative share price performances in Uber and Galaxy Digital. Uber is facing short-term pressure from problems it has hiring enough drivers for its cars as the United States comes out of lockdown. We see this as a transitory problem that will be alleviated when United States employment subsidies continue to roll off and currently idle workers come back to the workforce.

Galaxy Digital, which provides services to the cryptocurrency industry, had a weak month due to the cryptocurrency market sell-off and volatility. However, the Growth Category made strong returns in May on its underlying cryptocurrency exposure, primarily through Ethereum.

Yields on United States government bonds continued to decline in May which is negative for our portfolios. The market continues to balance the risk of higher and more persistent inflation which will push yields higher versus profit-taking on a trade that has generated strong returns over the past six months. We remain committed to this position and are confident the trade will continue to generate returns.

Details

Strategy objective Strategy summary Risk category Minimum suggested investment timeframe
To grow your investment over the long term. Anticipated to mainly hold New Zealand and Australian shares. 10 years+

Performance

Performance since inception (31 October 2008) to 31 May 2021
Dividend And Growth Performance Graph Dividend And Growth Performance Table

Dividend and Growth Portfolio

  • Returns are stated after Portfolio fees and expenses, but before any advisory fees or investor tax. Past performance is not necessarily an indication of future returns.
  • Cumulative returns.

Maximum Decline and Volatility

  • Returns should be looked at in conjunction with the level of risk associated with an investment. 'Maximum decline' is a measure of risk. It represents the largest decline in value in the previous 12 months or since inception of the Portfolio if it has not existed for 12 months.
  • This is the annualised standard deviation calculated from weekly returns of the Portfolio over the 5 years ending 31 March 2021. For more details on the Portfolio’s Maximum Decline and Volatility please contact NZ Funds.

Note: Rounding may affect some numbers.

Portfolios

Dividend and Growth Portfolio

Complete Portfolio as at 17 May 2021
Dividend And Growth Portfolio Table


1. The yield calculation represents an estimate of the yield on the Portfolio, calculated using the most recent information provided by the external investment managers involved in managing the Portfolio, hedged back to New Zealand dollars where appropriate. It is not calculated 'as at' any particular date as different external investment managers provide data at varying dates. As a result, in some instances the yields may lag the date of this Portfolio summary. The yield is not the actual return on the Portfolio, nor is it a projection or forecast. The Portfolio's return could be less than the Portfolio's yield. Details of the yield calculation are available on request from NZ Funds.
2. Total economic exposure represents the total economic value of a Portfolio, which is the net asset value of the Portfolio adjusted for the effect of direct derivative positions taken by the Portfolio and indirect derivative positions taken other than via a fund including hedge funds. For more details on economic exposure, see the Other Material Information document on the Offer Register at www.companiesoffice.govt.nz/disclose.
Note: Rounding may affect any subtotals and totals.

Overview

Investment category Growth
Risk & volatility Please see the NZ Funds Advised Portfolio Service Product Disclosure Statement or the latest Fund Update for information on risk.
Withdrawal restriction The Portfolio has a 21-day withdrawal notice period.
Further information Further information is contained in the NZ Funds Advised Portfolio Service Product Disclosure Statement.