Investment descriptions
We use managed funds to get exposure to global share and bond markets. The biggest benefit is access to highly skilled teams of people who work in specific investment markets.
Fund managers are selected and monitored based on thorough research. We employ Makao Investments who specialise in this area. We meet with them every six weeks via conference call to receive updates and discuss market developments. Things considered in the selection process:
Fund manager investment philosophy, process, people, and performance
Fees and discount benefits
Environmental, Social, Governance (ESG) policy
Taxation
Currency risk and hedging policy
Managed fund descriptions are grouped by investment sector.
Cash
Apex NZ Dollar and foreign currency call accounts
All cash transactions flow through these accounts, namely, deposits, withdrawals, and investment related transactions. Interest rates are based on central bank rates. The call accounts are pooled wholesale holdings with ASB Bank which has a Standard & Poor’s credit rating of AA-. Interest is accrued daily and paid monthly.
Interest Rate on NZD: 3.85% (subject to change)
Nikko AM NZ Cash Fund (PIE)
The Nikko AM NZ Cash Fund invests in short term deposits and bonds and has a Standard and Poor's credit rating of AA-. It provides investors with regular income while preserving capital value. The performance objective is to outperform Bloomberg NZ Bond Bank Bill Index by 0.2% pa before fees, over a rolling three-year period.
Buy/Sell costs: nil | Ongoing Management Expenses (MER): 0.15% pa
Australasian Equities
Harbour NZ Index Shares Fund (PIE)
The Harbour NZ Index Shares Fund (PIE) is designed to provide an efficient and cost-effective way to gain diversified exposure to the NZ share market. By tracking the S&P/NZX 50 Portfolio Index, this fund provides access to shares in the 50 largest companies listed on the NZX, with a 5% cap on each company.
Buy/Sell costs: nil | Ongoing Management Expenses (MER): 0.20% pa
Milford Trans-Tasman Equity Fund (PIE)
The Milford Trans-Tasman Equity Fund (PIE) provides investors with a diversified portfolio of high-quality shares in New Zealand and Australian companies. The fund seeks to deliver long-term capital growth by actively selecting shares with strong growth potential and attractive valuations. The investment objective is to provide capital growth by outperforming the two relevant share market indices.
Buy/Sell costs: nil | Ongoing Management Expenses (MER): 1.05% pa
MINT Australasian Equity Fund (PIE)
The MINT Australasian Equity Fund (PIE) invests in a carefully selected portfolio of high-quality listed shares across Australia and New Zealand. With a focus on long-term capital growth, the fund is actively managed to identify companies with strong growth potential and robust fundamentals. The investment objective is outperforming the S&P/NZX50 Gross Index after fees and expenses, over the medium to long term.
Buy/Sell costs: nil | Ongoing Management Expenses (MER): 0.89% pa
International Equities
Capital Group New Perspective Fund (Unhedged)
The Capital Group New Perspective Fund offers global diversification by investing in leading companies best-placed to thrive in a dynamic global economy. This actively managed fund focuses on growth-oriented early stage and established companies from developed and emerging markets, aiming for long-term capital growth. With a proven track record of excess returns, the fund's strategy identifies companies with strong competitive advantages and global reach.
Buy/Sell costs: nil | Ongoing Management Expenses (MER): 0.75% pa
DFA Emerging Markets Value Trust
The DFA Emerging Markets Value Trust invests in shares of companies in emerging markets (e.g. China, India, Brazil, Poland, Indonesia, South Africa). Focusing on value shares - companies trading at lower relative prices - the fund seeks long-term capital growth by investing in undervalued shares. The fund targets companies with strong financial health and significant growth potential.
Buy/Sell costs: 0.44% | Ongoing Management Expenses (MER): 0.717% pa
Dimensional Global Sustainability PIE Fund (Unhedged)
Dimensional’s global sustainability strategy prioritises environmental, social, and governance (ESG) factors. The investment objective is to provide long-term capital growth by gaining exposure to a large number of shares (approx. 3,900) from all countries. Investing decisions are based on comparison of share price to value and maintaining diversification.
Buy/Sell costs: 0.24% | Ongoing Management Expenses (MER): 0.361% pa
Dimensional Global Sustainability PIE Fund (Hedged)
This version of the fund is fully hedged back to NZD. The fund holds the same shares as the unhedged version. The NZD hedging strategy minimises the impact of currency fluctuations, offering more predictable returns.
Buy/Sell costs: 0.24% | Ongoing Management Expenses (MER): 0.361% pa
Harbour T. Rowe Price Global Equity Fund (PIE) (Hedged)
The Harbour T. Rowe Price Global Equity Fund (PIE) (Hedged) is an actively managed growth-orientated fund providing investors with access to a globally diversified portfolio of high-quality shares (approx. 150 companies). The fund focuses on long-term capital growth by investing in companies with strong growth potential across developed and emerging markets. The fund manager actively checks for any environmental, social or governance (ESG) risks. The NZD hedging strategy minimises currency risk, ensuring more stable returns.
Buy/Sell costs: nil | Ongoing Management Expenses (MER): 0.90% pa
Nikko AM Global Shares Fund (PIE) (Unhedged)
This fund aims to provide long-term superior returns through a disciplined and clear investment process. Investing in companies across developed and emerging markets, equities are selected for their strong growth potential. The fund invests in 40-60 companies with a focus on sustainable competitive advantage and attractive valuation to achieve long term capital growth.
Buy/Sell costs: 0.14% | Ongoing Management Expenses (MER): 0.85% pa
Nikko AM Global Shares Hedged Fund (PIE)
This version of the fund is fully hedged back into NZD. The fund holds the same shares as the unhedged version. The NZD hedging strategy minimises the impact of currency fluctuations, offering more predictable returns.
Buy/Sell costs: 0.14% | Ongoing Management Expenses (MER): 0.85% pa
Simplicity Unhedged Global Share Fund (PIE)
The Simplicity Unhedged Global Share Fund (PIE) provides investors with cost-effective exposure to a diversified portfolio of high-quality international shares. The fund is passively managed, tracking the Bloomberg DM ex NZ ESG Screened Index investing in a wide range of companies across developed markets (over 1,000 shares in more than 20 countries). The unhedged structure allows investors to benefit from currency fluctuations, potentially enhancing returns.
Buy/Sell costs: nil | Ongoing Management Expenses (MER): 0.15% pa
Simplicity Hedged Global Share Fund (PIE)
This version of the fund is fully hedged back to NZD. The fund holds the same shares as the unhedged version. The NZD hedging strategy minimises the impact of currency fluctuations, offering more predictable returns.
Buy/Sell costs: nil | Ongoing Management Expenses (MER): 0.15% pa
International Fixed Interest
Brandywine Global Opportunistic Fixed Income Fund (PIE)
The fund invests in an actively managed portfolio of sovereign bonds, investment grade bonds, mortgage securities, and currencies. The fund can also invest in emerging market debt, high yield debt, and below investment grade non-sovereign and corporate debt. Investment is concentrated in those countries that offer attractive value.
Buy/Sell costs: 0.15% | Ongoing Management Expenses (MER): 0.77% pa
Colchester Global Government Bond PIE Fund
The Colchester Global Government Bond PIE Fund aims to achieve favourable income and capital returns from a globally diversified portfolio of primarily sovereign bonds or bond-like securities and currencies. The fund focuses on preserving capital and generating income by investing in bonds from stable and creditworthy governments around the world.
Buy/Sell costs: nil | Ongoing Management Expenses (MER): 0.60% pa
Hunter Global Fixed Interest Fund (PIE)
The Hunter Global Fixed Interest Fund (PIE) fund invests in a portfolio of international bonds, derivatives and cash. The predominant investment is in bonds issued by governments, supranationals, local authorities, and corporates. The fund uses both active and passive investment strategies.
Buy/Sell costs: nil | Ongoing Management Expenses (MER): 0.46% pa
Simplicity Hedged Global Bond Fund (PIE)
The Simplicity Hedged Global Bond Fund (PIE) focuses on offering a low-cost, diversified investment in high-quality bonds. This is achieved by tracking the Bloomberg MSCI Global Aggregate SRI Exclusions Float Adjusted index (hedged into New Zealand dollars). This index provides exposure to a broad range of government, corporate, and securitised bonds.
Buy/Sell costs: nil | Ongoing Management Expenses (MER): 0.15% pa
New Zealand Fixed Interest
Harbour NZ Core Fixed Interest Fund (PIE)
This fund predominantly holds a mix of NZ bonds issued by government and corporates. The fund is actively managed which means the Fixed Income team is able to use Harbour’s macroeconomic and company research to make active investment decisions and target additional returns and hedge against risks.
Buy/Sell costs: nil | Ongoing Management Expenses (MER): 0.50% pa
Nikko AM NZ Bond Fund (PIE)
The Nikko AM NZ Bond Fund (PIE) offers investors a low-risk approach to a portfolio of high-quality New Zealand bonds by investing in a mix of government, corporate, and other bonds. The focus is to deliver consistent and stable superior income and capital preservation by having a diverse range of return generators. The fund's active management approach seeks to enhance returns by carefully selecting bonds and managing interest rate and credit risks.
Buy/Sell costs: nil | Ongoing Management Expenses (MER): 0.33% pa
Infrastructure
First Sentier Global Listed Infrastructure Fund (PIE)
The First Sentier Global Listed Infrastructure Fund (PIE) provides investors with access to a diversified portfolio of high-quality infrastructure assets worldwide. This fund invests in publicly traded companies that own and operate essential infrastructure including transportation, utilities, and communications networks. The fund looks for companies that can contribute to, or benefit from, sustainable development and are stable cash generators.
Buy/Sell costs: 0.30% | Ongoing Management Expenses (MER): 1.01% pa
Salt Sustainable Global Listed Infrastructure Fund (PIE)
The Salt Sustainable Global Listed Infrastructure Fund (PIE) invests in a diversified portfolio of global infrastructure companies with a focus on sustainability. This fund targets companies involved in essential infrastructure, such as energy, communications, transportation, and water, that adhere to strong environmental, social, and governance (ESG) principles.
Buy/Sell costs: 0.40% | Ongoing Management Expenses (MER): 0.75% pa