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Forsyth Barr Australian Equities Fund

The fund aims to achieve positive long-term returns by investing in selected Australian shares, subject to the risks associated with investments in international share markets.

Unit Price

AS AT 30 Jul 2021

1.4578 NZD

The unit prices shown do not take into account any adjustment for PIE tax.
Buy/sell spreads may apply when transacting. There are currently none.

Month End Unit Price

As at 30 Jun 2021

1.4608 NZD

Manager's Comment

Market Commentary

The Australian Equities market delivered very strong returns over the June quarter, with technology, telecommunication, and consumer discretionary stocks outperforming, and utility and energy stocks underperforming. Australia’s economic recovery has been quicker and stronger than previously expected and has outperformed most major advanced economies, driven in part by continuing elevated commodity prices.  The unemployment rate continues to fall and more people are in work than before the pandemic.  There are signs inflation is building (albeit likely to lag New Zealand).  Despite this, the RBA continues with its dovish tone sticking to its manta of “unlikely to raise interest rates until 2024”.  We remain cautious around the impact of rolling lockdowns on the economy due to COVID flare ups.



Portfolio Performance

The Forsyth Barr Australian Equities fund delivered a gross return of 6.87% in the quarter ending June 2021, underperforming the fund’s market index return of 7.68%. 

Key contributors to outperformance over the quarter were overweight positions in Iress (up on takeover speculation), Viva Energy, Smartgroup, Altium (up on a takeover bid) and Senex Energy. Major detractors to performance included underweight positions in Commonwealth Bank of Australia (our preferred exposure is Westpac), and Afterpay along with overweight positions in a2 Milk (which has rebounded strongly in July) and Service Stream.


Broadly speaking we have positioned the Australian Equities fund to take advantage of four key themes.  The first is for inflation and higher interest rates.  Rates have likely bottomed this cycle, and we expect these to continue to rise over the medium term.  This supports being overweight financials and industrials, and underweight bond proxies and growth names with long-dated cashflows. 

Our second theme is for a continued V shaped economic recovery.  Unprecedented fiscal & monetary stimulus have delivered labour and housing outcomes far exceeding initial expectations. To capitalise on this momentum we have lifted allocations to housing, construction, civil and credit exposed names.

Our third theme is for sustained strong commodity prices.  We have seen a broad rally in global commodity prices, which supports our current positions.  Whilst current holdings have done well they are still cheap versus the market average and offer very attractive dividend yields.  Most resource stocks have rallied but mining services companies have lagged. We expect to see sector capital expenditure pipelines expand given improved earnings and project economics, supporting the outlook for mining services companies.

Our last theme is economic reopening.  Some COVID recovery plays have lagged the rally. The fund is positioned to benefit from their earnings recovery over the medium term.  However given uncertainty around international travel we maintain a partial barbell approach, continuing to hold COVID beneficiaries still presenting attractive value.

We actively manage the fund’s foreign currency exposures. As at 30 June 2021, these exposures represented 96.53% of the value of the fund. After allowing for foreign currency hedges in place, 65.05% of the value of the fund was unhedged and exposed to foreign currency risk.

Major Investments

As at 30 Jun 2021

Company name Volume
CSL Limited 7.66%
BHP Group Limited 5.67%
Westpac Banking Corporation Ltd 5.30%
Commonwealth Bank of Australia Limited 4.46%
ANZ transactional bank account 3.47%
Australia and New Zealand Banking Group Limited 3.18%
National Australia Bank Ltd 3.01%
Telstra Corp 2.67%
Rio Tinto Ltd 2.56%
Downer EDI Limited 2.43%
Major holdings as % of total portfolio 40.41%
Total portfolio holdings 78

Return Comparison

As at 30 Jun 2021

1 Month 3 Months 1 Year 3 Years Since commenced operation
Net Fund Return 1 Month 2.59% 3 Months 6.36% 1 Year 23.61% 3 Years 4.77% Since commenced operation 2.49%
Gross Fund Return 1 Month 2.60% 3 Months 6.87% 1 Year 25.87% 3 Years 6.89% Since commenced operation 4.38%
S&P/ASX Accumulation 200 Index (0% Hedged to the NZD) 1 Month 3.34% 3 Months 6.98% 1 Year 28.39% 3 Years 9.02% Since commenced operation 5.65%
S&P/ASX Accumulation 200 Index (50% Hedged to the NZD) 1 Month 2.81% 3 Months 7.68% 1 Year 28.26% 3 Years 9.44% Since commenced operation 6.35%
S&P/ASX Accumulation 200 Index (100% Hedged to the NZD) 1 Month 2.28% 3 Months 8.36% 1 Year 28.05% 3 Years 9.81% Since commenced operation 6.91%

The unit prices shown do not take into account any adjustment for PIE tax.

Net Fund Returns are calculated after deduction of fund charges, trading expenses and accrued tax for a New Zealand resident paying individual tax at the highest Prescribed Investor Rate (28%). Gross Fund Returns are calculated before deduction of taxes and fund charges but after deduction of trading expenses. Market index returns do not have any deductions for fund charges, trading expenses or tax.

The S&P/ASX Accumulation 200 Index (“Index”) is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by Forsyth Barr Limited. Copyright © 2015 S&P Dow Jones Indices LLC, a subsidiary of McGraw Hill Financial Inc., and/or its affiliates. All rights reserved. Redistribution, reproduction and/or photocopying in whole or in part are prohibited without written permission of S&P Dow Jones Indices LLC. For more information on any of S&P Dow Jones Indices LLC’s indices please visit S&P® is a registered trademark of Standard & Poor’s Financial Services LLC and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC. Neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their third party licensors make any representation or warranty, express or implied, as to the ability of any index to accurately represent the asset class or market sector that it purports to represent and neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their third party licensors shall have any liability for any errors, omissions, or interruptions of any index or the data included therein.

Morningstar Performance

Morningstar, are a leading global provider of independent investment research that rank and report on Funds within New Zealand and Australia. View the latest Fund Report for the Australian Equities Fund here.

Fund update

As at 30 June 2021

This document tells you how the Forsyth Barr Australian Equities Fund has performed and what fees were charged. The document will help you to compare the fund with other funds.

General Fund Information

Risk indicator

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The risk indicator is rated from 1 (low) to 7 (high). The rating reflects how much the value of the relevant fund’s assets goes up and down (volatility). A higher risk generally means higher potential returns over time, but more ups and downs along the way. The risk indicator is based on the returns data for the five years to 31 March 2021. See more information about the risks of investing in the Product Disclosure Statement.

Target investment mix

Cash and cash equivalents 5.00%
New Zealand fixed interest 0.00%
International fixed interest 0.00%
Australasian equities 85.00%
International equities 0.00%
Listed property 10.00%

Things to note

  • Manager: Forsyth Barr Investment Management Limited
  • Date the fund started: 26 June 2008
  • Tax status: Portfolio Investment Fund (PIE)
  • Minimum suggested investment time frame: At least five years
  • Benchmark: None
  • Currency: New Zealand dollars
  • View the Product Disclosure Statement for detailed information about this Fund and Forsyth Barr Investment Funds Scheme.


Annual fund charges are currently 1.25% p.a. of the value of your investment. This means that we pay management and administration charges along with the Supervisor fee out of this. All fees and charges are quoted exclusive of GST.

Trail commission may be paid to a Financial Adviser responsible for your Investment Funds account. Any trail fee is paid by Forsyth Barr Limited and is not a separate charge on your Investment Funds account.

Forsyth Barr Investment Management is the manager of the Investment Funds. The comments on this webpage do not take your personal circumstances into account. Before acting on this information, please contact your Forsyth Barr Investment Adviser. Forsyth Barr Limited and its affiliates do not make any representation or warranty (express or implied) that this webpage is accurate, complete, or current and to the maximum extent permitted by law disclaim any liability for loss which may be incurred by any person relying on this webpage. This webpage is not intended to be distributed or made available to any person in any jurisdiction where doing so would constitute a breach of any applicable laws or regulations.

© 2021 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. Any general advice or ‘regulated financial advice’ under New Zealand law has been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. For more information refer to our Financial Services Guide (AU) or Financial Advice Provider Disclosure Statement (NZ) at and You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser.
The Morningstar Rating is an assessment of a fund’s past performance – based on both return and risk – which shows how similar investments compare with their competitors. A high rating alone is insufficient basis for an investment decision.


Get in touch

24 locations around New Zealand

To find out more about our Australian Equities Fund, speak to one of our Investment Advisers. They will help you determine the role an Investment Fund can play in helping you achieve your goals.