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New Zealand Equities Fund

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


Unit Price

AS AT 30 Jul 2021

4.0408 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

4.0800 NZD

Manager's Comment

Market Commentary

The New Zealand Equity market delivered a modestly positive return over the June quarter, lagging the very strong returns of both the Australian and Global equity markets. NZ is seeing a very strong economic recovery in line with its global counterparts, driven by an employment recovery, government stimulus and low interest rates.

However, the ways to gain direct exposure to that backdrop in the listed NZ market are constrained by our preponderance of defensive and healthcare exposed sectors.  Tourism exposed stocks also lagged the market as international travel resumption continues to be deferred, whilst A2 Milk struggled after providing disappointing earnings guidance as it attempts to clear excess inventory.

 

Portfolio Performance

The Forsyth Barr New Zealand Equities fund delivered a gross return of 3.13% in the quarter ending June 2021, compared to the fund’s market index return of 0.86%.

We have now lapped the worst of the Covid-19 induced economic lockdowns, and stock performance is being driven by the anticipation and delivery of stronger earnings outcomes than expected just 6 to 9 months ago.

Key contributors to outperformance over the quarter were overweight positions in Refining NZ, Kathmandu and Contact Energy, assisted by underweights in Auckland Airport and Ryman Healthcare.  Major detractors to performance included overweight positions in My Food Bag and Tower, and an underweight in Arvida.

Outlook

The New Zealand economy, fiscal accounts and debt levels have recovered from the Covid-19 shock quicker and more powerfully than all commentators expected.  This is leading to increases in both short and long term interest rates as the extraordinary measures the Reserve Bank took to offset the shock are no longer required. Inflation is rising towards the Reserve Bank’s target range.

Global growth and supply disruptions are also boosting export prices for many NZ export commodities, whilst a lack of international travel has spurred residential construction.  This provides a strong back drop for continued earnings recovery, provided companies have the ability to pass on rising input costs such as materials and labour.  Despite the roll out of vaccinations world-wide, global tourism is lagging our prior expectations and companies exposed to that theme are still in an earnings downgrade cycle.

China is a potential risk factor, as its economy is already slowing (it recovered from Covid-19 much quicker than western economies) at the same time as it is imposing trade barriers on some products. 

Major Investments

As at 30 Jun 2021

Company name Volume
Fisher & Paykel Healthcare Corporation Limited 10.20%
Spark New Zealand Limited 7.01%
Contact Energy Limited 6.47%
Infratil Limited 5.63%
Fletcher Building Limited 5.42%
Ebos Group Limited 4.47%
Mainfreight Limited 4.45%
Meridian Energy Limited 4.32%
SKYCITY Entertainment Group Limited 3.55%
Auckland International Airport Limited 3.44%
Major holdings as % of total portfolio 54.98%
Total portfolio holdings 48

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 2.71% 3 Months 2.73% 1 Year 14.99% 3 Years 11.55% Since commenced operation 11.77%
Gross Fund Return 1 Month 2.88% 3 Months 3.13% 1 Year 17.00% 3 Years 13.81% Since commenced operation 14.08%
S&P/NZX 50 Gross with Imputation Index 1 Month 2.79% 3 Months 0.86% 1 Year 11.21% 3 Years 13.16% Since commenced operation 12.22%

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

The S&P/NZX 50 Gross with Imputation 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 www.spdji.com. 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 New Zealand Equities Fund here.

Fund update

As at 30 June 2021

This document tells you how the Forsyth Barr New Zealand 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.

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.

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 www.morningstar.com.au/s/fsg.pdf and ww.morningstar.au/s/fapds.pdf. 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

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