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Forsyth Barr Global Equities Fund

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

Unit Price

AS AT 14 Jan 2021

1.6283 NZD

Buy/sell spreads may apply when transacting. There are currently none.

Month End Unit Price

As at 31 Dec 2020

1.6205 NZD

Manager's Comment

The Forsyth Barr Global Equities Fund increased by 1.45% (gross of fees and tax) in the month of December, underperforming the reference index by -1.56%.  Over the quarter, the fund increased by 2.40%, underperforming the reference index by -6.70%. Despite this, the fund still outperformed its reference index over the 2020 year by +1.05%, achieving a gross return of 13.06%.

The fund achieved a modest return over the December quarter, despite the headwind of a strong NZ dollar and the broader market being driven by a rebound in cyclical stocks that had performed poorly over the first nine months of the year (and which were underweight in the GEF portfolio compared to the benchmark).  Pleasingly, the fund achieved a gross return of 13.06% over the calendar 2020 year in what was an extremely challenging period given the impact of the COVID-19 pandemic on world economies.

On many fronts, 2020 was an incredibly challenging year. The temptation over the December quarter was to chase the rotation trade out of growth-style stocks and into value. We see this trade being a temporary trade, however we did make the decision to introduce some “value” cover through buying Citi Group, Ping An Insurance Group and Takeda Pharmaceutical.

Markets have typically entered another phase of complacency, despite the substantial uncertainties that persist from widespread prolonged lockdowns to slow the spread of the COVID-19 virus.  The imminent roll-out of multiple vaccines has given the market a bout of optimism, however we remain cautious as to the timing of economies returning to normal levels of activity.  In this regard, to provide some downside protection if markets were to enter another period of anxiety, we made the decision over the December quarter to introduce ProShares VIX Short-Term Futures Exchange Traded Fund (VIXY) into the fund. The role of VIXY is to deliver a sizable positive return if markets were to sell-off sharply.

We continue to favour investing in companies that we believe can achieve above average, enduring, earnings growth. We identify sector themes that we expect will help drive outperformance over the medium term. The fund is positioned around three key themes:

Stay long Healthcare. We are backing the healthcare sector, which we believe offers excellent value at the current prices. In time we plan to rotate out of lower-growth value stocks like Gilead and Bayer in favour of healthcare companies that offer both good value and above average profit growth potential. Over the December quarter the fund sold out of high-growth but expensive Illumina and replaced it with Netherlands-based Royal Phillips. Royal Philips has shifted its business objectives to becoming a global health-tech leader by connecting care across the health continuum: healthy living, prevention, diagnosis, treatment and homecare.     

Stay long Consumer. We are building a portfolio of global consumer discretionary and staples stocks that we are confident should emerge post-COVID-19 with a stronger competitive advantage. We are looking for global companies which, through investment in their strong global brands, can maintain price leadership/premiums. Our current list of consumer stocks includes:, LVMH (which owns Louis Vuitton and other luxury brands), Mondelez (acquired in early November), Nike, Starbucks, Kering (which owns Gucci), Estee Lauder and Adidas. We continue to review the valuations metrics of this sector and may make some changes to this list in early 2021.

Stay long Information Technology. Technology and innovation is at the forefront in inspiring our investments. Technology is transforming businesses across all sectors. Within technology we are targeting several areas: digitalising health, internet of things, 5G, big data (artificial intelligence and machine learning), digitalising industrial production, cyber security, future-proofing corporates’ IT platforms, renewables/solar and payment systems. We believe our portfolio of technology companies provides exposure to most of these key areas of opportunity.

We actively manage the fund’s foreign currency exposures. As at the 31st of December 2020 these exposures represented 93.69% of the value of the fund. After allowing for foreign currency hedges in place, 67.72% of the value of the fund was unhedged and exposed to foreign currency risk.

Major Investments

As at 31 Dec 2020

Company name Volume
ANZ transactional bank account 6.31%, Inc. 4.91%
Visa Inc.- Class A Shares 4.76%
Takeda Pharmaceutical Co Limited 4.21%
Alphabet Inc Class A 3.96%
Comcast Corp Class A 3.62%
Mondelez International Inc 3.51%
Baxter International Inc. 3.32%
Apple Inc. 3.16%, Inc. 3.10%
Major holdings as % of total portfolio 40.85%
Total portfolio holdings 54

Performance over time

Return Comparison

As at 31 Dec 2020

1 Month 3 Months 1 Year 3 Years* Since commenced operation*
Net Fund Return 1 Month 1.07% 3 Months 1.23% 1 Year 10.10% 3 Years* 9.19% Since commenced operation* 3.35%
Gross Fund Return 1 Month 1.45% 3 Months 2.40% 1 Year 13.06% 3 Years* 12.00% Since commenced operation* 5.11%
MSCI ACWI Net TR Index (0% hedged to the NZD) 1 Month 2.14% 3 Months 5.29% 1 Year 8.94% 3 Years* 9.61% Since commenced operation* 7.49%
MSCI ACWI Net TR Index (50% hedged to the NZD) 1 Month 3.01% 3 Months 9.10% 1 Year 12.01% 3 Years* 10.15% Since commenced operation* 9.00%
MSCI ACWI Net TR Index (100% hedged to the NZD) 1 Month 3.87% 3 Months 12.96% 1 Year 14.86% 3 Years* 10.48% Since commenced operation* 10.16%

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 and including foreign tax credits, where applicable. Market index returns do not have any deductions for fund charges, trading expenses or tax.

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 Global Equities Fund here.

Fund update

As at 30 September 2020

This document tells you how the Forsyth Barr Global 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 30 September 2020. See more information about the risks of investing in the Product Disclosure Statement.

Target investment mix

Cash and cash equivalents 10.00%
New Zealand fixed interest 0.00%
International fixed interest 0.00%
Australasian equities 0.00%
International equities 90.00%
Listed property 0.00%

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 1.50% 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 Authorised Financial Adviser. His or her disclosure statement is available on request and free of charge. 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.

© 2020 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 ‘class service’ have 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. Refer to our Financial Services Guide (FSG) for more information at 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.

Get in touch

22 locations around New Zealand

To find out more about our Global 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.