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Forsyth Barr Growth Fund

The fund was established on 11 December 2020, however applications were accepted from 18 December 2020.

The fund aims to achieve positive long-term returns by selecting exposure across asset classes. Investors can expect moderate to high levels of movement up and down in value and to receive longer-term returns that are higher than those of the Balanced Fund.


Unit Price

AS AT 30 Jul 2021

1.0457 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

1.0488 NZD

Manager's comment

Market Commentary

Broadly speaking, equity markets delivered a positive performance over the quarter, with generally better returns received by those holding offshore securities when compared to domestic shares.

Fixed interest returns were mixed, with local bonds delivering a small positive return (based on the market index we follow) while international fixed interest securities continued to perform well. Our preferred fixed interest market index returned around 1% for the quarter.

Unsurprisingly, with short term interest rates so low, cash continued to be a drag on portfolio performance. 

The New Zealand dollar, relevant for our portfolios with unhedged foreign currency exposures, dramatically reversed its appreciation seen earlier in the year, by falling in value by close to 4% over the month of June to be largely unchanged over the June quarter.

For further commentary on each of the asset classes within the Forsyth Barr Growth Fund refer to the commentaries for each of the relevant Forsyth Barr Investment Funds single-asset class funds.

 

Portfolio Performance

For the June quarter, the Forsyth Barr Growth Fund delivered a gross return of 3.82% compared to the return of the fund’s market index of 4.11%.

Outlook

We will continue to hold an overexposure to growth assets but acknowledge that building inflationary pressures are likely to be more persistent and sustained than currently expected by the market.

Having said that, we remain comfortable with our current tactical asset allocation mix which we will review again towards the end of the July.

We are likely to increase the level of foreign currency hedging over July in order to lower the foreign currency exposure associated with offshore equity and listed property exposure. 

Foreign currency exposures associated with international fixed interest are hedged to the New Zealand dollar. We actively manage the fund’s currency exposures associated with international and Australian equities, and listed property. As at 30 June 2021, these exposures represented 54.65% of the value of the fund. After allowing for foreign currency hedges in place, approximately 37.90% of the value of the fund was unhedged and exposed to foreign currency risk.

Major Investments

As at 30 Jun 2021

Company name Volume
ANZ transactional bank account 6.69%
Amazon.com, Inc. 1.93%
Fisher & Paykel Healthcare Corporation Limited 1.93%
Visa Inc.- Class A Shares 1.81%
CSL Limited 1.52%
Alibaba Group Holding-Sp Adr 1.46%
Salesforce.com, Inc. 1.34%
Microsoft Corporation 1.33%
Spark New Zealand Limited 1.32%
Westpac Banking Corporation 1.26%
Total portfolio holdings 1764

Performance over time

Return Comparison

As at 30 Jun 2021

1 Month 3 Months 1 Year 3 Years Since commenced operation
Net Fund Return 1 Month 2.53% 3 Months 3.35% 1 Year N/A 3 Years N/A Since commenced operation 9.28%
Gross Fund Return 1 Month 2.55% 3 Months 3.82% 1 Year N/A 3 Years N/A Since commenced operation 5.65%
Composite Index 1 Month 2.37% 3 Months 4.11% 1 Year N/A 3 Years N/A Since commenced operation 6.50%

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 the deduction of taxes and fund charges but after the deductions of trading expenses and including imputation credits and foreign tax credits where available.

Fund update

As at 30 June 2021

This document tells you how the Forsyth Barr Growth 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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LOWER RISK
HIGHER RISK

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. This fund started on 11 December 2020. As the fund has not been in existence for 5 years, we have used market index return data for periods prior to 11 December 2020 and actual fund returns data afterwards. This means that the risk indicator may provide a less reliable indicator of the potential future volatility of the fund. See more information about the risks of investing in the Product Disclosure Statement.

Tactical asset allocation mix (as at 30 April 2021)

Cash and cash equivalents 3.00%
New Zealand fixed interest 10.00%
International fixed interest 4.00%
Australian equities 20.00%
International equities 36.00%
Listed property 8.00%
New Zealand Equities 19.00%

Things to note

  • Manager: Forsyth Barr Investment Management Limited
  • Date the fund started: 11 December 2020
  • 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.

Fees

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.

Trail commission may be paid to an 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.

Get in touch

24 locations around New Zealand

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