Portfolio InsightsApril 2020
2
Product Disclosure Statement
New Zealand Funds Management Limited is the issuer of the NZ Funds Advised Portfolio Service*, the NZ Funds KiwiSaver Scheme, the NZ Funds Managed Superannuation Service, and NZ Funds WealthBuilder.
The Product Disclosure Statement and the Disclose Register contain important information to help you to understand how your money is managed and the risks associated with investing.
A copy of the NZ Funds Advised Portfolio Service Product Disclosure Statement, the NZ Funds KiwiSaver Scheme Product Disclosure Statement, the NZ Funds Managed Superannuation Service Product Disclosure Statement, and the NZ Funds WealthBuilder Product Disclosure Statement is available on request or by visiting the NZ Funds website at www.nzfunds.co.nz.
Even if you have invested with NZ Funds for many years, please take the time to read these documents regularly as the content is frequently updated.
* Previously known as the NZ Funds Managed Portfolio Service
3
Contents
Performance summary 5
NZ Funds Advised Portfolio Service* 15
NZ Funds KiwiSaver Scheme 53
NZ Funds Managed Superannuation Service 67
NZ Funds WealthBuilder 91
Manager portfolios 105
Managers 113
* Previously known as the NZ Funds Managed Portfolio Service
4
THIS PAGE HAS INTENTIONALLY BEEN LEFT BLANK
5
Performance summary
6
NZ Funds Advised Portfolio Service*
Advised Portfolio Service Returns
Category Portfolio Year-to-date 1 month 3 months 6 months 1 year 2 years 5 years 10 years Since inception
Cash Core Cash Portfolio2Pre tax 0.19% -0.03% 0.12% 0.31% 0.89% 2.70% 9.70% 25.52% 38.83%
Post tax 0.14% -0.02% 0.09% 0.22% 0.64% 1.94% 6.89% 17.76% 26.34%
Income
Core Income Portfolio3Pre tax -1.43% 3.47% -2.78% -1.97% 1.58% 6.92% 17.69% 53.88% 69.00%
Post tax -0.97% 2.50% -1.95% -1.35% 1.21% 5.01% 12.57% 36.52% 45.81%
Global Income Portfolio1Pre tax -5.13% 4.96% -7.23% -4.66% 0.64% 4.51% 11.89% 36.49% 49.05%
Post tax -3.48% 3.61% -5.02% -3.13% 0.75% 3.53% 8.80% 25.42% 33.39%
Inflation
Core Inflation Portfolio4Pre tax -8.67% 5.47% -10.75% -5.58% -1.48% 5.56% 9.89% 42.59% 51.13%
Post tax -7.23% 4.95% -9.17% -4.14% -0.45% 5.49% 12.31% 53.39% 66.61%
Property Inflation Portfolio1Pre tax -11.32% 4.46% -12.63% -11.95% -4.45% 7.47% 14.13% 57.10% 67.38%
Post tax -11.34% 4.30% -12.92% -12.55% -5.22% 6.13% 11.95% 47.66% 56.52%
Equity Inflation Portfolio4Pre tax -6.13% 4.97% -6.27% -3.39% -2.51% 1.29% 7.93% 46.08% 52.67%
Post tax -4.39% 4.15% -5.00% -2.48% -1.40% 1.47% 11.17% 74.70% 127.60%
Growth
Core GrowthComposite Strategy6
Pre tax -5.47% 7.28% -6.92% -2.09% -8.32% -7.09% -4.77% 31.62% 148.64%8
Post tax -1.97% 6.26% -4.03% 0.25% -5.56% -4.59% -4.15% 26.91% -
Global Equity GrowthComposite Strategy5
Pre tax -8.17% 7.49% -7.32% -4.59% -5.02% -1.62% 16.48% 55.12% 255.00%8
Post tax -6.48% 6.74% -6.19% -3.85% -3.47% -0.14% 15.20% 48.52% -
Dividend and GrowthComposite Strategy7
Pre tax -10.36% 4.65% -13.02% -6.34% -1.97% 5.26% 44.17% 100.34% 791.49%8
Post tax -8.60% 4.76% -11.05% -4.45% -0.32% 5.99% 42.19% 91.88% -
IMPORTANT: Please refer to page 8 of this summary for the footnotes relating to this page. Past performance is not necessarily an indication of future returns.
Cumulative returns to 30 April 2020
* Previously known as the NZ Funds Managed Portfolio Service
7
NZ Funds Advised Portfolio Service*
Advised Portfolio Service Returns
Category Portfolio Year-to-date 1 month 3 months 6 months 1 year 2 years 5 years 10 years Since inception
Cash Core Cash Portfolio2Pre tax 0.19% -0.03% 0.12% 0.31% 0.89% 1.34% 1.87% 2.30% 2.73%
Post tax 0.14% -0.02% 0.09% 0.22% 0.64% 0.97% 1.34% 1.65% 1.94%
Income
Core Income Portfolio3Pre tax -1.43% 3.47% -2.78% -1.97% 1.58% 3.40% 3.31% 4.40% 4.56%
Post tax -0.97% 2.50% -1.95% -1.35% 1.21% 2.48% 2.40% 3.16% 3.25%
Global Income Portfolio1Pre tax -5.13% 4.96% -7.23% -4.66% 0.64% 2.23% 2.27% 3.16% 3.53%
Post tax -3.48% 3.61% -5.02% -3.13% 0.75% 1.75% 1.70% 2.29% 2.54%
Inflation
Core Inflation Portfolio4Pre tax -8.67% 5.47% -10.75% -5.58% -1.48% 2.74% 1.90% 3.61% 3.66%
Post tax -7.23% 4.95% -9.17% -4.14% -0.45% 2.71% 2.35% 4.37% 4.54%
Property Inflation Portfolio1Pre tax -11.32% 4.46% -12.63% -11.95% -4.45% 3.67% 2.68% 4.62% 4.58%
Post tax -11.34% 4.30% -12.92% -12.55% -5.22% 3.02% 2.28% 3.97% 3.97%
Equity Inflation Portfolio4Pre tax -6.13% 4.97% -6.27% -3.39% -2.51% 0.65% 1.54% 3.86% 3.75%
Post tax -4.39% 4.15% -5.00% -2.48% -1.40% 0.73% 2.14% 5.74% 7.41%
Growth
Core GrowthComposite Strategy6
Pre tax -5.47% 7.28% -6.92% -2.09% -8.32% -3.61% -0.97% 2.79% 5.50%
Post tax -1.97% 6.26% -4.03% 0.25% -5.56% -2.32% -0.84% 2.41% -
Global Equity GrowthComposite Strategy5
Pre tax -8.17% 7.49% -7.32% -4.59% -5.02% -0.81% 3.10% 4.49% 5.38%
Post tax -6.48% 6.74% -6.19% -3.85% -3.47% -0.07% 2.87% 4.03% -
Dividend and GrowthComposite Strategy7
Pre tax -10.36% 4.65% -13.02% -6.34% -1.97% 2.59% 7.59% 7.20% 8.30%
Post tax -8.60% 4.76% -11.05% -4.45% -0.32% 2.95% 7.29% 6.73% -
IMPORTANT: Please refer to page 8 for the footnotes relating to this page. Past performance is not necessarily an indication of future returns.
Annualised returns to 30 April 2020
* Previously known as the NZ Funds Managed Portfolio Service
8
NZ Funds Advised Portfolio Service* – Notes
Returns
Pre tax returns are stated after Portfolio fees and expenses, but before any advisory fees or investor tax. Post tax returns are stated after Portfolio fees and expenses and investor tax at the highest Prescribed Investor Rate (PIR). From 1 October 2008 to 30 September 2010 the highest PIR was 30%. Since 1 October 2010 the highest PIR has been 28%. Past performance is not necessarily an indication of future returns.
Composite Strategies
The Composite Strategies have been developed to illustrate the long-term performance of the investment categories represented by the relevant Portfolios.
The Composite Strategies are not the historic returns of the Portfolios.
They illustrate the historical performance of the NZ Funds approach of managing assets of the type held within the respective NZ Funds Advised Portfolio Service Portfolio to which each Composite Strategy relates.
The Composite Strategies are tax-adjusted to remove, as much as possible, the impact of the different tax regimes that applied during the calculation period. The pre tax returns are also stated after Portfolio fees and expenses, but before any advisory fees or investor tax. The post tax returns are stated after Portfolio fees and expenses and investor tax at the highest Prescribed Investor Rate (PIR).
For more detail on the calculation of each of the Composite Strategies please contact NZ Funds.
The performance of the Composite Strategies is not an indication of future Portfolio returns.
Footnotes for pages 6 & 7
1 Inception date was 31 October 2008.
2 Inception date was 28 February 2008.
3 Inception date was 23 July 2008.
4 Performance is measured since the launch of the APS platform (now known as NZ Funds Advised Portfolio Service) on 31 October 2008. The post tax since inception returns for the Core Inflation Portfolio and the Equity Inflation Portfolio include the benefit of formation tax losses under the PIE rules. For more detail, please contact NZ Funds.
5 Composite strategy inception was 6 March 1996.
6 Composite strategy inception was 1 May 2003.
7 Composite strategy inception was 2 December 1992.
8 Pre tax equivalent gross return (for more detail, refer to the performance page for each Portfolio/Composite Strategy).
* Previously known as the NZ Funds Managed Portfolio Service
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NZ Funds KiwiSaver Scheme
NZ Funds KiwiSaver Scheme Returns
Strategy Year-to-date 1 month 3 months 6 months 1 year 2 years 5 years Since Inception
IncomePre tax -2.85% 3.83% -4.56% -2.86% 1.48% 6.30% 17.23% 42.00%
Post tax -1.96% 2.77% -3.22% -1.97% 1.16% 4.60% 12.30% 28.77%
InflationPre tax -7.18% 5.30% -8.26% -4.04% -1.19% 5.14% 12.52% 53.86%
Post tax -5.66% 4.54% -6.88% -2.99% -0.37% 4.59% 12.81% 47.95%
GrowthPre tax -8.88% 5.38% -10.63% -5.33% -6.99% -1.90% 12.03% 77.84%
Post tax -6.37% 5.12% -8.43% -3.54% -4.89% -0.65% 9.50% 64.63%
Cumulative returns to 30 April 2020
Pre tax returns are stated after Strategy fees and expenses, but before any advisory fees or investor tax. Post tax returns are stated after Strategy fees and expenses and investor tax at the highest Prescribed Investor Rate (PIR) of 28%. Inception date of the Scheme was 31 October 2010. Past performance is not necessarily an indication of future returns.
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NZ Funds KiwiSaver Scheme
NZ Funds KiwiSaver Scheme Returns
Strategy Year-to-date 1 month 3 months 6 months 1 year 2 years 5 years Since Inception
IncomePre tax -2.85% 3.83% -4.56% -2.86% 1.48% 3.10% 3.23% 3.76%
Post tax -1.96% 2.77% -3.22% -1.97% 1.16% 2.28% 2.35% 2.70%
InflationPre tax -7.18% 5.30% -8.26% -4.04% -1.19% 2.54% 2.39% 4.64%
Post tax -5.66% 4.54% -6.88% -2.99% -0.37% 2.27% 2.44% 4.21%
GrowthPre tax -8.88% 5.38% -10.63% -5.33% -6.99% -0.96% 2.30% 6.25%
Post tax -6.37% 5.12% -8.43% -3.54% -4.89% -0.32% 1.83% 5.39%
Annualised returns to 30 April 2020
Pre tax returns are stated after Strategy fees and expenses, but before any advisory fees or investor tax. Post tax returns are stated after Strategy fees and expenses and investor tax at the highest Prescribed Investor Rate (PIR) of 28%. Inception date of the Scheme was 31 October 2010. Past performance is not necessarily an indication of future returns.
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NZ Funds Managed Superannuation Service
Returns
Strategy Year-to-date 1 month 3 months 6 months 1 year 2 years 3 years Since Inception
Income - British Pounds*
Pre tax 1.08% 2.81% -4.40% -2.29% 5.44% 8.59% - 17.64%
Post tax 1.07% 2.07% -2.93% -1.32% 4.39% 6.91% - 13.51%
Growth - British Pounds
Pre tax -5.61% 4.48% -10.20% - - - - -5.21%
Post tax -4.03% 4.43% -8.07% - - - - -3.69%
IncomePre tax -2.77% 3.90% -4.45% -2.80% 1.50% 6.35% 8.28% 9.10%
Post tax -1.91% 2.82% -3.14% -1.93% 1.18% 4.64% 6.01% 6.59%
InflationPre tax -7.14% 5.31% -8.08% -3.65% -1.06% 5.10% 12.02% 11.51%
Post tax -5.65% 4.56% -6.75% -2.73% -0.34% 4.51% 10.48% 10.60%
GrowthPre tax -9.25% 5.52% -10.47% -5.61% -6.40% -1.15% 9.23% 10.52%
Post tax -6.73% 5.26% -8.32% -3.79% -4.39% 0.01% 8.93% 10.76%
Cumulative returns to 30 April 2020
NZ Funds Managed Superannuation Service
Pre tax returns are stated after Strategy fees and expenses, but before any advisory fees or investor tax. Post tax returns are stated after Strategy fees and expenses and investor tax at the highest Prescribed Investor Rate (PIR) of 28%. Inception date of the Service was 25 January 2017, except for the Income Strategy - British Pounds which has an inception date of 11 August 2017 and the Growth Strategy - British Pounds which has an inception date of 3 December 2019. Past performance is not necessarily an indication of future returns.
* This Strategy was previously known as the ROPS GBP Income Strategy.
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NZ Funds Managed Superannuation Service
Returns
Strategy Year-to-date 1 month 3 months 6 months 1 year 2 years 3 years Since Inception
Income - British Pounds*
Pre tax 1.08% 2.81% -4.40% -2.29% 5.44% 4.21% - 6.15%
Post tax 1.07% 2.07% -2.93% -1.32% 4.39% 3.40% - 4.77%
Growth - British Pounds
Pre tax -5.61% 4.48% -10.20% - - - - -5.21%
Post tax -4.03% 4.43% -8.07% - - - - -3.69%
IncomePre tax -2.77% 3.90% -4.45% -2.80% 1.50% 3.13% 2.69% 2.70%
Post tax -1.91% 2.82% -3.14% -1.93% 1.18% 2.29% 1.96% 1.97%
InflationPre tax -7.14% 5.31% -8.08% -3.65% -1.06% 2.52% 3.86% 3.40%
Post tax -5.65% 4.56% -6.75% -2.73% -0.34% 2.23% 3.38% 3.14%
GrowthPre tax -9.25% 5.52% -10.47% -5.61% -6.40% -0.58% 2.99% 3.11%
Post tax -6.73% 5.26% -8.32% -3.79% -4.39% 0.00% 2.89% 3.18%
Annualised returns to 30 April 2020
NZ Funds Managed Superannuation Service
* This Strategy was previously known as the ROPS GBP Income Strategy.
Pre tax returns are stated after Strategy fees and expenses, but before any advisory fees or investor tax. Post tax returns are stated after Strategy fees and expenses and investor tax at the highest Prescribed Investor Rate (PIR) of 28%. Inception date of the Service was 25 January 2017, except for the Income Strategy - British Pounds which has an inception date of 11 August 2017 and the Growth Strategy - British Pounds which has an inception date of 3 December 2019. Past performance is not necessarily an indication of future returns.
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NZ Funds WealthBuilder
NZ Funds WealthBuilder Returns
Strategy Year-to-date 1 month 3 months 6 months 1 year 2 years 5 years Since Inception
IncomePre tax -5.34% 3.90% - - - - - -5.34%
Post tax -3.79% 2.81% - - - - - -3.79%
InflationPre tax -6.58% 5.28% - - - - - -6.58%
Post tax -5.60% 4.54% - - - - - -5.60%
GrowthPre tax -8.48% 5.47% - - - - - -8.48%
Post tax -6.82% 5.22% - - - - - -6.82%
Cumulative returns to 30 April 2020
Pre tax returns are stated after Strategy fees and expenses, but before any advisory fees or investor tax. Post tax returns are stated after Strategy fees and expenses and investor tax at the highest Prescribed Investor Rate (PIR) of 28%. Inception date of the Scheme was 27 February 2020. Past performance is not necessarily an indication of future returns.
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NZ Funds WealthBuilder
NZ Funds WealthBuilder Returns
Strategy Year-to-date 1 month 3 months 6 months 1 year 2 years 5 years Since Inception
IncomePre tax -5.34% 3.90% - - - - - -5.34%
Post tax -3.79% 2.81% - - - - - -3.79%
InflationPre tax -6.58% 5.28% - - - - - -6.58%
Post tax -5.60% 4.54% - - - - - -5.60%
GrowthPre tax -8.48% 5.47% - - - - - -8.48%
Post tax -6.82% 5.22% - - - - - -6.82%
Annualised returns to 30 April 2020
Pre tax returns are stated after Strategy fees and expenses, but before any advisory fees or investor tax. Post tax returns are stated after Strategy fees and expenses and investor tax at the highest Prescribed Investor Rate (PIR) of 28%. Inception date of the Scheme was 27 February 2020. Past performance is not necessarily an indication of future returns.
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NZ Funds Advised Portfolio Service*
* Previously known as the NZ Funds Managed Portfolio Service
16
Core Cash Portfolio
Portfolio returns* Year-to-date 1 month 3 months 6 months 1 year 2 years† 5 years† 10 years†Since
inceptionMaximum decline
12 monthsX
Volatility 5 years^
Core Cash Portfolio 0.19% -0.03% 0.12% 0.31% 0.89% 2.70% 9.70% 25.52% 38.83% -0.05% 0.11%
Performance since inception (28 February 2008) to 30 April 2020
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Core Cash PortfolioComplete Portfolio as at 20 April 2020
Strategy / SecurityEstimated
yield1
Credit rating
Portfolio exposure %
Portfolio exposure $
cash and cash equivalents 100.0% $38,566,908
Bank deposits 0.5% n/a 50.5% $19,482,367Kiwibank bank bill 05/05/2020 0.3% A-1 19.4% $7,494,815BNZ bank bill 11/05/2020 0.3% A-1+ 19.4% $7,494,434BNZ bank bill 04/05/2020 0.3% A-1+ 7.5% $2,882,646Net receivables2 n/a n/a 3.1% $1,212,646
total economic exposure3 100.0% $38,566,908
1. The yield is not the actual return of the portfolio, nor is it a projection or forecast. Details of the yield calculation are available on request from NZ Funds. 2. Net receivables include unrealised profit and loss and net receivables/payables. 3. Total economic exposure represents the total economic value of a Portfolio, which is the net asset value of the Portfolio adjusted for the effect of direct derivative positions taken
by the Portfolio and indirect derivative positions taken other than via a fund including hedge funds. For more details of the total economic exposure calculations, contact NZ Funds. Note: Rounding may affect any subtotals and totals
18
Core Cash PortfolioNotes
Core Cash Portfolio
* Returns are stated after Portfolio fees and expenses, but before any advisory fees or investor tax. Past performance is not necessarily an indication of future returns.
† Cumulative returns.
Maximum Decline and Volatility
x Returns should be looked at in conjunction with the level of risk associated with an investment. We use 'maximum decline' as a measure of risk. It represents the largest decline in value experienced during the previous 12 months.
^ This is the annualised standard deviation calculated from weekly returns of the Portfolio over the 5 years ending 31 March 2020. For more details on the Portfolio’s Maximum Decline and Volatility please contact NZ Funds.
Note
Rounding may affect the subtotals and totals.
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Core Income PortfolioPerformance since inception (23 July 2008) to 30 April 2020
Portfolio returns* Year-to-date 1 month 3 months 6 months 1 year 2 years† 5 years† 10 years†Since
inceptionMaximum decline
12 monthsX
Volatility 5 years^
Core Income Portfolio -1.43% 3.47% -2.78% -1.97% 1.58% 6.92% 17.69% 53.88% 69.00% -8.07% 2.94%
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Strategy / SecurityEstimated
yield1
Credit rating
Portfolio exposure %
Portfolio exposure $
cash and cash equivalents 26.7% $33,863,978
australasian bonds 74.4% $94,394,969
Vector Ltd 4.996% 14/03/2024 2.4% BBB 8.9% $11,319,564Westpac Banking 4.695% 01/09/2026 4.4% BBB 5.8% $7,321,205WEL Networks 4.9% 02/08/2023 3.8% NR 5.0% $6,359,644Precinct Properties New Zealand 4.42% 27/11/2024 3.4% NR 4.6% $5,852,902Insurance Australia Group 5.15% 15/06/2043 4.3% BBB 4.3% $5,399,184Property for Industry 4.59% 28/11/2024 3.2% NR 4.0% $5,032,319Westpac floating perpetual 1.2% BBB+ 3.9% $4,887,701Fletcher Building 3.9% 15/03/2025 5.9% NR 3.6% $4,627,352Powerco 4.67% 15/11/2024 2.3% BBB 3.5% $4,490,920Infratil 5.5% 15/06/2024 5.7% NR 3.0% $3,841,974Housing NZ Ltd 3.36% 12/06/2025 1.1% AA+ 3.0% $3,750,592NEXTDC 6.25% 09/06/2021 4.9% NR 2.8% $3,583,432Fletcher Building Industries 4.75% 15/03/2021 5.5% NR 2.5% $3,184,324Property for Industry 4.25% 01/10/2025 3.3% NR 2.5% $3,147,358Peet 6.75% 07/06/2024 6.8% NR 2.5% $3,133,573New Zealand Government Bond 1.5% 15/05/2031 1.1% AA+ 2.2% $2,797,793Westpac Banking floating 27/08/2029 3.2% BBB+ 1.9% $2,454,736Trustpower 3.97% 22/02/2029 3.6% NR 1.7% $2,099,514Trustpower 4.01% 15/12/2022 2.9% NR 1.6% $2,064,856ANZ floating perpetual 1.3% BBB+ 1.4% $1,739,273
Core Income PortfolioComplete Portfolio as at 20 April 2020
21
Strategy / SecurityEstimated
yield1
Credit rating
Portfolio exposure %
Portfolio exposure $
australasian bonds (continued)
Core Income PortfolioComplete Portfolio as at 20 April 2020 (continued)
1. The yield is not the actual return of the portfolio, nor is it a projection or forecast. Details of the yield calculation are available on request from NZ Funds. 2. Credit default swaps notional value is currently $113,767,261. 3. Total economic exposure represents the total economic value of a Portfolio, which is the net asset value of the Portfolio adjusted for the effect of direct derivative positions taken
by the Portfolio and indirect derivative positions taken other than via a fund including hedge funds. For more details of the total economic exposure calculations, contact NZ Funds. Note: Rounding may affect any subtotals and totals.
Mercury NZ 3.6% 11/07/2049 3.3% BB+ 1.4% $1,723,668Spark Finance 2.6% 18/03/2030 2.6% A- 1.3% $1,641,264New Zealand interest rate swaps exposure n/a n/a 1.1% $1,362,500Argosy Property 2.9% 29/10/2026 4.0% NR 1.0% $1,217,016Trustpower Ltd 3.35% 29/07/2026 3.4% NR 0.5% $644,016Metlifecare Ltd 3% 30/09/2026 4.2% NR 0.4% $547,070National Australia Bank Income Securities perpetual 0.0% BBB- 0.1% $171,219
australasian bonds 0.7% $844,526
Credit default swaps - Market value2 n/a n/a 0.7% $844,526
total economic exposure3 101.7% $129,103,474
foreign currency exposure 1.5% $1,900,084
22
Core Income Portfolio
Core Income Portfolio
* Returns are stated after Portfolio fees and expenses, but before any advisory fees or investor tax. Past performance is not necessarily an indication of future returns.
† Cumulative returns.
Maximum Decline and Volatility
x Returns should be looked at in conjunction with the level of risk associated with an investment. We use 'maximum decline' as a measure of risk. It represents the largest decline in value experienced during the previous 12 months.
^ This is the annualised standard deviation calculated from weekly returns of the Portfolio over the 5 years ending 31 March 2020. For more details on the Portfolio’s Maximum Decline and Volatility please contact NZ Funds.
Note
Rounding may affect the subtotals and totals.
Notes
23
Global Income PortfolioPerformance since inception (31 October 2008) to 30 April 2020
Portfolio returns* Year-to-date 1 month 3 months 6 months 1 year 2 years† 5 years† 10 years†Since
inceptionMaximum decline
12 monthsX
Volatility 5 years^
Global Income Portfolio -5.13% 4.96% -7.23% -4.66% 0.64% 4.51% 11.89% 36.49% 49.05% -15.93% 4.89%
24
Strategy / SecurityEstimated
yield1
Credit rating
Portfolio exposure %
Portfolio exposure $
cash and cash equivalents 29.2% $34,623,338
international bonds 71.5% $84,715,124
American Homes 4 Rent 4.9% 15/02/2029 3.7% BBB- 8.5% $10,102,676JPMorgan Chase 3.625% 01/12/2027 1.7% BBB+ 7.2% $8,537,001Southern Copper 7.50% 27/07/2035 4.2% BBB+ 6.9% $8,125,376Goldman Sachs 3.5% 01/04/2025 1.5% BBB+ 6.2% $7,400,313Citigroup Inc 4.125% 25/07/2028 2.3% BBB 5.9% $6,977,758AT&T Inc 4.35% 01/03/2029 1.8% BBB 5.4% $6,400,977Netflix 5.375% 15/11/2029 3.3% BB- 5.3% $6,340,304Uber Technologies 8% 01/11/2026 6.7% CCC+ 4.3% $5,139,631Tyson Foods Inc 4.35% 01/03/2029 1.4% BBB+ 4.0% $4,757,106McDonald's Corp 2.625% 01/09/2029 1.4% BBB+ 3.5% $4,092,807Verizon Communications Inc 4.016% 03/12/2029 1.3% BBB+ 3.4% $4,065,665Oracle Corp 2.8% 01/04/2027 1.1% A+ 3.1% $3,720,980Bank of America Corp 3.864% 23/07/2024 1.1% A- 2.1% $2,547,584Dell 6.02% 15/06/2026 3.4% BBB- 2.0% $2,345,726British Telecom 5.125% 04/12/2028 2.4% BBB 1.6% $1,866,848
Global Income PortfolioComplete Portfolio as at 20 April 2020
25
Strategy / SecurityEstimated
yield1
Credit rating
Portfolio exposure %
Portfolio exposure $
Global Income PortfolioComplete Portfolio as at 20 April 2020 (continued)
Broadcom Inc 4.25% 15/04/2026 2.4% BBB- 1.2% $1,480,378Credit default swaps - Market value2 n/a n/a 0.6% $763,880United States bond futures n/a n/a 0.0% $50,113
total economic exposure3 100.7% $119,338,462
foreign currency exposure 6.8% $8,035,231
1. The yield is not the actual return of the portfolio, nor is it a projection or forecast. Details of the yield calculation are available on request from NZ Funds. 2. Credit default swaps notional value is currently $101,793,973. 3. Total economic exposure represents the total economic value of a Portfolio, which is the net asset value of the Portfolio adjusted for the effect of direct derivative positions taken by the
Portfolio and indirect derivative positions taken other than via a fund including hedge funds. For more details of the total economic exposure calculations, contact NZ Funds. Note: Rounding may affect any subtotals and totals.
international bonds (continued)
26
Global Income Portfolio
Global Income Portfolio
* Returns are stated after Portfolio fees and expenses, but before any advisory fees or investor tax. Past performance is not necessarily an indication of future returns.
† Cumulative returns.
Maximum Decline and Volatility
x Returns should be looked at in conjunction with the level of risk associated with an investment. We use 'maximum decline' as a measure of risk. It represents the largest decline in value experienced during the previous 12 months.
^ This is the annualised standard deviation calculated from weekly returns of the Portfolio over the 5 years ending 31 March 2020. For more details on the Portfolio’s Maximum Decline and Volatility please contact NZ Funds.
Note
Rounding may affect the subtotals and totals.
Notes
27
Core Inflation PortfolioPerformance since inception (31 October 2008) to 30 April 2020
Portfolio returns* Year-to-date 1 month 3 months 6 months 1 year 2 years† 5 years† 10 years†Since
inceptionMaximum decline
12 monthsX
Volatility 5 years^
Core Inflation Portfolio -8.67% 5.47% -10.75% -5.58% -1.48% 5.56% 9.89% 42.59% 51.13% -24.67% 10.53%
28
Strategy / Security1 Estimated yield2
Portfolio exposure %
Portfolio exposure $
cash and cash equivalents 11.7% $11,308,214
australasian bonds 0.2% $173,053
New Zealand inflation swaps exposure n/a 0.2% $173,053
international bonds 22.2% $21,415,227
Floating Rate and Perpetual Bond Strategy 1.0% 21.4% $20,618,508Inflation swaps - Market value3 n/a 0.8% $796,719
australasian shares 68.6% $66,123,098
Dividend and Growth Strategy 3.8% 68.6% $66,123,098
total economic exposure4 102.7% $99,019,593
foreign currency exposure 8.2% $7,892,060
Core Inflation PortfolioComplete Portfolio as at 20 April 2020
1. Where a strategy is shown, the asset class reflects the predominant assets in the strategy. The strategy may include other assets including cash. 2. The yield calculation represents an estimate of the yield on the Portfolio, calculated using the most recent information provided by the external investment managers involved in
managing the Portfolio, hedged back to New Zealand dollars where appropriate. It is not calculated 'as at' any particular date as different external investment managers provide data at varying dates. As a result, in some instances the yields may lag the date of this Portfolio summary. The yield is not the actual return on the Portfolio, nor is it a projection or forecast. The Portfolio's return could be less than the Portfolio's yield. Details of the yield calculation are available on request from NZ Funds.
3. Inflation swaps notional value is currently $13,530,549. 4. Total economic exposure represents the total economic value of a Portfolio, which is the net asset value of the Portfolio adjusted for the effect of direct derivative positions taken
by the Portfolio and indirect derivative positions taken other than via a fund including hedge funds. For more details of the total economic exposure calculations, contact NZ Funds. Note: Rounding may affect any subtotals and totals.
29
Core Inflation Portfolio
Core Inflation Portfolio
* Returns are stated after Portfolio fees and expenses, but before any advisory fees or investor tax. Past performance is not necessarily an indication of future returns.
† Cumulative returns.
Maximum Decline and Volatility
x Returns should be looked at in conjunction with the level of risk associated with an investment. We use 'maximum decline' as a measure of risk. It represents the largest decline in value experienced during the previous 12 months.
^ This is the annualised standard deviation calculated from weekly returns of the Portfolio over the 5 years ending 31 March 2020. For more details on the Portfolio’s Maximum Decline and Volatility please contact NZ Funds.
Note
Rounding may affect the subtotals and totals.
Notes
30
Property Inflation PortfolioPerformance since inception (31 October 2008) to 30 April 2020
Portfolio returns* Year-to-date 1 month 3 months 6 months 1 year 2 years† 5 years† 10 years†Since
inceptionMaximum decline
12 monthsX
Volatility 5 years^
Property Inflation Portfolio -11.32% 4.46% -12.63% -11.95% -4.45% 7.47% 14.13% 57.10% 67.38% -24.02% 9.38%
31
Strategy / Security1 Estimated yield2
Portfolio exposure %
Portfolio exposure $
cash and cash equivalents 18.6% $15,027,174
international bonds 22.2% $17,971,272
Floating Rate and Perpetual Bond Strategy 1.0% 22.2% $17,971,272
australasian shares 28.7% $23,176,557
Goodman Property Trust 3.1% 4.8% $3,905,429Precinct Properties New Zealand 4.7% 3.5% $2,865,314Property For Industry 5.1% 2.5% $2,036,767Kiwi Property Group Ltd 7.4% 2.4% $1,955,529Argosy Property 6.0% 2.2% $1,749,852Investore Property 5.5% 2.1% $1,719,527Goodman Group 2.7% 2.1% $1,690,615Vital Healthcare Property Trust 3.9% 2.0% $1,652,320Stride Property Group 8.0% 1.4% $1,112,305Scentre Group Smart Communications Group 8.2% 1.2% $941,191Dexus 6.0% 1.0% $822,224Mirvac Group 5.5% 0.9% $693,375GPT Group 7.2% 0.7% $592,366Stockland 9.2% 0.7% $544,553Vicinity Centres 8.7% 0.4% $354,365Charter Hall Group 5.7% 0.3% $270,957Shopping Centres Australasia 6.4% 0.2% $154,569Cromwell Property Group 10.1% 0.1% $115,299
Property Inflation PortfolioComplete Portfolio as at 20 April 2020
32
Strategy / Security1 Estimated yield2
Portfolio exposure %
Portfolio exposure $
Property Inflation PortfolioComplete Portfolio as at 20 April 2020 (continued)
international shares 29.9% $24,193,351
Prologis 1.9% 4.0% $3,246,776Public Storage 3.5% 1.9% $1,521,172Digital Realty Trust 2.5% 1.9% $1,498,360Equity Residential 2.8% 1.6% $1,273,469Avalonbay Communities Inc 3.2% 1.5% $1,183,409Welltower 6.2% 1.2% $1,006,539Link 3.7% 1.2% $957,441Alexandria Real Estate Equities 2.1% 1.1% $909,516Simon Property Group 14.0% 1.1% $854,239Essex Property Trust Inc 2.6% 1.0% $841,727Realty Income Corp 4.8% 1.0% $836,164Boston Properties 3.7% 0.9% $737,322Invitation Homes Inc 1.9% 0.8% $652,266Healthpeak Properties Inc 5.0% 0.8% $644,315Duke Realty 2.1% 0.8% $635,749Mid-America Apartment Communities 2.9% 0.8% $631,681Extra Space Storage Inc 3.3% 0.8% $624,850Segro Plc Ord 2.6% 0.7% $570,616UDR 3.1% 0.7% $557,683Ventas 8.5% 0.7% $557,105Global share options n/a 0.7% $557,076WP Carey Inc 6.0% 0.7% $545,151Medical Properties Trust 5.8% 0.5% $439,147Unibail-Rodamco-Westfield 14.4% 0.5% $433,817
33
Strategy / Security1 Estimated yield2
Portfolio exposure %
Portfolio exposure $
Property Inflation PortfolioComplete Portfolio as at 20 April 2020 (continued)
Host Hotels & Resorts Inc 5.7% 0.5% $399,337Nippon Building Fund Inc 4.0% 0.5% $378,998Vornado Realty Trust 6.3% 0.5% $372,987Vici Properties Inc 7.7% 0.5% $370,151Japan Real Estate Investment 3.9% 0.4% $357,478Kilroy Realty Corp 2.5% 0.4% $338,320VEREIT 10.8% 0.3% $260,488
alternative securities 1.4% $1,119,152
Universa Black Swan Protection Protocol n/a 1.4% $1,119,152
total economic exposure3 100.7% $81,487,506
foreign currency exposure 12.4% $10,047,269
1. Where a strategy is shown, the asset class reflects the predominant assets in the strategy. The strategy may include other assets including cash. 2. The yield calculation represents an estimate of the yield on the Portfolio, calculated using the most recent information provided by the external investment managers involved in
managing the Portfolio, hedged back to New Zealand dollars where appropriate. It is not calculated 'as at' any particular date as different external investment managers provide data at varying dates. As a result, in some instances the yields may lag the date of this Portfolio summary. The yield is not the actual return on the Portfolio, nor is it a projection or forecast. The Portfolio's return could be less than the Portfolio's yield. Details of the yield calculation are available on request from NZ Funds.
3. Total economic exposure represents the total economic value of a Portfolio, which is the net asset value of the Portfolio adjusted for the effect of direct derivative positions taken by the Portfolio and indirect derivative positions taken other than via a fund including hedge funds. For more details of the total economic exposure calculations, contact NZ Funds.
Note: Rounding may affect any subtotals and totals.
international shares (continued)
34
Property Inflation Portfolio
Property Inflation Portfolio
* Returns are stated after Portfolio fees and expenses, but before any advisory fees or investor tax. Past performance is not necessarily an indication of future returns.
† Cumulative returns.
Maximum Decline and Volatility
x Returns should be looked at in conjunction with the level of risk associated with an investment. We use 'maximum decline' as a measure of risk. It represents the largest decline in value experienced during the previous 12 months.
^ This is the annualised standard deviation calculated from weekly returns of the Portfolio over the 5 years ending 31 March 2020. For more details on the Portfolio’s Maximum Decline and Volatility please contact NZ Funds.
Note
Rounding may affect the subtotals and totals.
Notes
35
Equity Inflation PortfolioPerformance since inception (31 October 2008) to 30 April 2020
Portfolio returns* Year-to-date 1 month 3 months 6 months 1 year 2 years† 5 years† 10 years†Since
inceptionMaximum decline
12 monthsX
Volatility 5 years^
Equity Inflation Portfolio -6.13% 4.97% -6.27% -3.39% -2.51% 1.29% 7.93% 46.08% 52.67% -19.50% 10.01%
36
Strategy / Security1 Estimated yield2
Portfolio exposure %
Portfolio exposure $
cash and cash equivalents 14.0% $11,602,964
australasian bonds 0.2% $171,699
New Zealand interest rate swaps exposure n/a 0.2% $131,848Westpac term deposit 2.0% 0.0% $39,852
international bonds 22.9% $18,955,864
Floating Rate and Perpetual Bond Strategy 1.0% 22.1% $18,348,849Inflation swaps - Market value3 n/a 0.7% $607,014
international shares 54.8% $45,459,987
Equity index futures (long) n/a 18.1% $15,039,435MFS Global Research Focused Fund 0.2% 14.3% $11,851,858Suvretta Offshore Fund n/a 10.5% $8,724,932LSV Global Concentrated Fund 0.6% 6.2% $5,157,024Emerson Point Capital Partners LP n/a 4.7% $3,918,737Global share options n/a 0.9% $768,001
Equity Inflation PortfolioComplete Portfolio as at 20 April 2020
37
Strategy / Security1 Estimated yield2
Portfolio exposure %
Portfolio exposure $
Equity Inflation PortfolioComplete Portfolio as at 20 April 2020 (continued)
1. Where a strategy is shown, the asset class reflects the predominant assets in the strategy. The strategy may include other assets including cash. 2. The yield calculation represents an estimate of the yield on the Portfolio, calculated using the most recent information provided by the external investment managers involved in
managing the Portfolio, hedged back to New Zealand dollars where appropriate. It is not calculated 'as at' any particular date as different external investment managers provide data at varying dates. As a result, in some instances the yields may lag the date of this Portfolio summary. The yield is not the actual return on the Portfolio, nor is it a projection or forecast. The Portfolio's return could be less than the Portfolio's yield. Details of the yield calculation are available on request from NZ Funds.
3. Inflation swaps notional value is currently $10,308,823. 4. Total economic exposure represents the total economic value of a Portfolio, which is the net asset value of the Portfolio adjusted for the effect of direct derivative positions taken
by the Portfolio and indirect derivative positions taken other than via a fund including hedge funds. For more details of the total economic exposure calculations, contact NZ Funds. Note: Rounding may affect any subtotals and totals.
commodities 7.9% $6,543,746
Commodities precious metal futures exposure n/a 7.6% $6,343,160Commodity base metals option exposure n/a 0.2% $200,585
alternative securities 2.8% $2,306,284
Universa Black Swan Protection Protocol n/a 2.8% $2,306,284
total economic exposure4 102.5% $85,040,543
foreign currency exposure 2.8% $2,345,979
38
Equity Inflation Portfolio
Equity Inflation Portfolio
* Returns are stated after Portfolio fees and expenses, but before any advisory fees or investor tax. Past performance is not necessarily an indication of future returns.
† Cumulative returns.
Maximum Decline and Volatility
x Returns should be looked at in conjunction with the level of risk associated with an investment. We use 'maximum decline' as a measure of risk. It represents the largest decline in value experienced during the previous 12 months.
^ This is the annualised standard deviation calculated from weekly returns of the Portfolio over the 5 years ending 31 March 2020. For more details on the Portfolio’s Maximum Decline and Volatility please contact NZ Funds.
Note
Rounding may affect the subtotals and totals.
Notes
39
Core Growth PortfolioPerformance since inception (31 October 2008) to 30 April 2020 for Core Growth Portfolio
Portfolio returns* Year-to-date 1 month 3 months 6 months 1 year 2 years† 5 years† 10 years†Since
inceptionMaximum decline
12 monthsX
Volatility 5 years^
Core Growth Portfolio -5.47% 7.28% -6.92% -2.09% -8.32% -7.09% -4.77% 31.62% 38.58% -23.75% 14.96%
40
Core Growth PortfolioTax-adjusted performance to 30 April 2020 for Core Growth Composite Strategy**
Composite strategy returns** Year-to-date 1 month 3 months 6 months 1 year 2 years† 5 years† 10 years†Since
inceptionMaximum decline
12 monthsX
Volatility 5 years^
Core Growth Composite Strategy -5.47% 7.28% -6.92% -2.09% -8.32% -7.09% -4.77% 31.62% 148.64% -23.75% 14.96%
41
Strategy / Security1 Estimatedyield2
Portfolio exposure %
Portfolio exposure $
cash and cash equivalents 1.0% $1,038,247
international bonds 0.8% $853,592
Credit default swaps - Market value3 n/a 0.8% $853,592
international shares 98.8% $102,584,060
Equity index futures (long) n/a 59.1% $61,320,638Suvretta Offshore Fund n/a 20.4% $21,194,570Emerson Point Capital Partners LP n/a 10.6% $10,996,659Uber Technologies Inc 0.0% 6.0% $6,252,645Global share options n/a 1.7% $1,742,692Lyft 0.0% 1.0% $1,076,856
commodities 28.8% $29,850,044
Commodities precious metal futures exposure n/a 27.4% $28,422,320Commodity base metals option exposure n/a 1.4% $1,427,724
alternative securities 3.8% $3,935,942
Universa Black Swan Protection Protocol n/a 3.8% $3,935,942
total economic exposure4 133.2% $138,261,884
foreign currency exposure 3.5% $3,588,321
Core Growth PortfolioComplete Portfolio as at 20 April 2020
1. Where a strategy is shown, the asset class reflects the predominant assets in the strategy. The strategy may include other assets including cash. 2. The yield calculation represents an estimate of the yield on the Portfolio, calculated using the most recent information provided by the external investment managers involved in
managing the Portfolio, hedged back to New Zealand dollars where appropriate. It is not calculated 'as at' any particular date as different external investment managers provide data at varying dates. As a result, in some instances the yields may lag the date of this Portfolio summary. The yield is not the actual return on the Portfolio, nor is it a projection or forecast. The Portfolio's return could be less than the Portfolio's yield. Details of the yield calculation are available on request from NZ Funds.
3. Credit default swaps notional value is currently $114,988,465. 4. Total economic exposure represents the total economic value of a Portfolio, which is the net asset value of the Portfolio adjusted for the effect of direct derivative positions taken
by the Portfolio and indirect derivative positions taken other than via a fund including hedge funds. For more details of the total economic exposure calculations, contact NZ Funds. Note: Rounding may affect any subtotals and totals.
42
Core Growth Portfolio
Core Growth Portfolio
* Returns are stated after Portfolio fees and expenses, but before any advisory fees or investor tax. Past performance is not necessarily an indication of future returns.
† Cumulative returns.
Maximum Decline and Volatility
x Returns should be looked at in conjunction with the level of risk associated with an investment. We use 'maximum decline' as a measure of risk. It represents the largest decline in value experienced during the previous 12 months.
^ This is the annualised standard deviation calculated from weekly returns of the Portfolio over the 5 years ending 31 March 2020. For more details on the Portfolio’s Maximum Decline and Volatility please contact NZ Funds.
Note
Rounding may affect the subtotals and totals.
Composite Strategy
** The Composite Strategy is used to illustrate the long-term performance of the investment approach used in managing the Core Growth Portfolio.
The Composite Strategy does not represent the historic returns of the Core Growth Portfolio.
It illustrates the historical performance of the NZ Funds approach of managing assets of the type held within the Core Growth Portfolio.
The Composite Strategy is tax-adjusted to remove, as much as possible, the impact of the different tax regimes that applied during the calculation period. Returns are stated after Portfolio fees and expenses, but before any advisory fees or investor tax.
For more detail on the calculation of the Core Growth Composite Strategy please contact NZ Funds.
The performance of the Core Growth Composite Strategy is not an indication of the future returns of the Core Growth Portfolio.
Notes
43
Global Equity Growth PortfolioPerformance since inception (31 October 2008) to 30 April 2020 for Global Equity Growth Portfolio
Portfolio returns* Year-to-date 1 month 3 months 6 months 1 year 2 years† 5 years† 10 years†Since
inceptionMaximum decline
12 monthsX
Volatility 5 years^
Global Equity Growth Portfolio -8.17% 7.49% -7.32% -4.59% -5.02% -1.62% 16.48% 55.12% 63.94% -21.97% 12.50%
44
Global Equity Growth PortfolioTax-adjusted performance to 30 April 2020 for Global Equity Growth Composite Strategy**
Composite strategy returns** Year-to-date 1 month 3 months 6 months 1 year 2 years† 5 years† 10 years†Since
inceptionMaximum decline
12 monthsX
Volatility 5 years^
Global Equity Growth Composite Strategy -8.17% 7.49% -7.32% -4.59% -5.02% -1.62% 16.48% 55.12% 255.00% -21.97% 12.50%
45
Global Equity Growth PortfolioComplete Portfolio as at 20 April 2020
Strategy / Security1 Estimated yield2
Portfolio exposure %
Portfolio exposure $
cash and cash equivalents 1.0% $945,294
australasian bonds 5.2% $4,944,091
Westpac term deposit 2.0% 5.2% $4,944,091
international bonds 0.1% $102,635
Credit default swaps - Market value3 n/a 0.1% $102,635
international shares 83.9% $79,318,457
MFS Global Research Focused Fund 0.2% 34.3% $32,429,306Equity index futures (long) n/a 31.3% $29,597,252LSV Global Concentrated Fund 0.6% 16.0% $15,079,809Global share options n/a 1.4% $1,330,803Uber Technologies Inc 0.0% 0.8% $751,808Lyft 0.0% 0.1% $129,479
commodities 6.8% $6,394,737
Commodities precious metal futures exposure n/a 3.6% $3,417,454Commodities base metals futures exposure n/a 3.0% $2,805,616Commodity base metals option exposure n/a 0.2% $171,667
46
Global Equity Growth PortfolioComplete Portfolio as at 20 April 2020 (continued)
1. Where a strategy is shown, the asset class reflects the predominant assets in the strategy. The strategy may include other assets including cash. 2. The yield calculation represents an estimate of the yield on the Portfolio, calculated using the most recent information provided by the external investment managers involved in
managing the Portfolio, hedged back to New Zealand dollars where appropriate. It is not calculated 'as at' any particular date as different external investment managers provide data at varying dates. As a result, in some instances the yields may lag the date of this Portfolio summary. The yield is not the actual return on the Portfolio, nor is it a projection or forecast. The Portfolio's return could be less than the Portfolio's yield. Details of the yield calculation are available on request from NZ Funds.
3. Credit default swaps notional value is currently $13,826,028. 4. Total economic exposure represents the total economic value of a Portfolio, which is the net asset value of the Portfolio adjusted for the effect of direct derivative positions taken
by the Portfolio and indirect derivative positions taken other than via a fund including hedge funds. For more details of the total economic exposure calculations, contact NZ Funds. Note: Rounding may affect any subtotals and totals.
Strategy / Security1 Estimated yield2
Portfolio exposure %
Portfolio exposure $
alternative securities 3.9% $3,665,851
Universa Black Swan Protection Protocol n/a 3.9% $3,665,851
total economic exposure4 100.9% $95,371,065
foreign currency exposure 6.6% $6,273,015
47
Global Equity Growth Portfolio
Global Equity Growth Portfolio
* Returns are stated after Portfolio fees and expenses, but before any advisory fees or investor tax. Past performance is not necessarily an indication of future returns.
† Cumulative returns.
Maximum Decline and Volatilityx Returns should be looked at in conjunction with the level of risk associated with an investment.
We use 'maximum decline' as a measure of risk. It represents the largest decline in value experienced during the previous 12 months.
^ This is the annualised standard deviation calculated from weekly returns of the Portfolio over the 5 years ending 31 March 2020. For more details on the Portfolio’s Maximum Decline and Volatility please contact NZ Funds.
Note
Rounding may affect the subtotals and totals.
Composite Strategy
** The Composite Strategy is used to illustrate the long-term performance of the investment approach used in managing the Global Equity Growth Portfolio.
The Composite Strategy does not represent the historic returns of the Global Equity Growth Portfolio.
It illustrates the historical performance of the NZ Funds approach of managing assets of the type held within the Global Equity Growth Portfolio.
The Composite Strategy is tax-adjusted to remove, as much as possible, the impact of the different tax regimes that applied during the calculation period. Returns are stated after Portfolio fees and expenses, but before any advisory fees or investor tax.
For more detail on the calculation of the Global Equity Growth Composite Strategy please contact NZ Funds.
The performance of the Global Equity Growth Composite Strategy is not an indication of the future returns of the Global Equity Growth Portfolio.
Notes
48
Dividend and Growth PortfolioPerformance since inception (31 October 2008) to 30 April 2020 for Dividend and Growth Portfolio
Portfolio returns* Year-to-date 1 month 3 months 6 months 1 year 2 years† 5 years† 10 years†Since
inceptionMaximum decline
12 monthsX
Volatility 5 years^
Dividend and Growth Portfolio -10.36% 4.65% -13.02% -6.34% -1.97% 5.26% 44.17% 100.34% 115.07% -28.64% 11.23%
49
Dividend and Growth PortfolioTax-adjusted performance to 30 April 2020 for Dividend and Growth Composite Strategy**
Composite strategy returns** Year-to-date 1 month 3 months 6 months 1 year 2 years† 5 years† 10 years†Since
inceptionMaximum decline
12 monthsX
Volatility 5 years^
Dividend and Growth Composite Strategy -10.36% 4.65% -13.02% -6.34% -1.97% 5.26% 44.17% 100.34% 791.49% -28.64% 11.23%
50
Strategy / SecurityEstimated
yield1
Portfolio exposure %
Portfolio exposure $
cash and cash equivalents 2.5% $3,097,841
australasian bonds 3.6% $4,499,216
Westpac term deposit 2.0% 3.6% $4,499,216
australasian shares 93.9% $117,871,847
Australian futures index exposure n/a 9.5% $11,950,568Spark New Zealand 7.7% 8.8% $11,022,972a2 Milk 0.2% 8.2% $10,285,883Meridian Energy 6.1% 7.8% $9,787,885Chorus 4.9% 7.8% $9,739,212Fisher & Paykel Healthcare 1.6% 6.8% $8,469,635Contact Energy 8.1% 6.2% $7,719,757Tower 4.6% 4.9% $6,150,714Ryman Healthcare 1.9% 4.0% $5,000,712Fletcher Building 6.9% 3.9% $4,862,222Mainfreight 2.3% 3.6% $4,566,574Infratil 4.8% 3.6% $4,541,835Auckland International Airport 2.9% 3.3% $4,194,757
Dividend and Growth PortfolioComplete Portfolio as at 20 April 2020
51
Strategy / SecurityEstimated
yield1
Portfolio exposure %
Portfolio exposure $
australasian shares (continued)
Dividend and Growth PortfolioComplete Portfolio as at 20 April 2020 (continued)
1. The yield calculation represents an estimate of the yield on the Portfolio, calculated using forecast dividends (Source: Bloomberg), NZ Funds' estimate of imputation credits where appropriate, and hedged back to New Zealand dollars where appropriate. The yield is not the actual return on the Portfolio, nor is it a projection or forecast. The Portfolio's return could be less than the Portfolio's yield. Details of the yield calculation are available on request from NZ Funds.
2. Total economic exposure represents the total economic value of a Portfolio, which is the net asset value of the Portfolio adjusted for the effect of direct derivative positions taken by the Portfolio and indirect derivative positions taken other than via a fund including hedge funds. For more details of the total economic exposure calculations, contact NZ Funds.
Note: Rounding may affect any subtotals and totals.
Ebos 3.5% 3.3% $4,159,732Summerset Group Holdings Ltd Snz 2.5% 3.0% $3,762,190Goodman Property Trust 3.1% 3.0% $3,734,687Port of Tauranga 3.1% 2.4% $3,039,071Precinct Properties New Zealand 4.7% 2.0% $2,521,165Kiwi Property Group Ltd 7.4% 1.9% $2,362,276
total economic exposure2 100.0% $125,468,904
foreign currency exposure 4.1% $5,090,225
52
Dividend and Growth Portfolio
Dividend and Growth Portfolio
* Returns are stated after Portfolio fees and expenses, but before any advisory fees or investor tax. Past performance is not necessarily an indication of future returns.
† Cumulative returns.
Maximum Decline and Volatility
x Returns should be looked at in conjunction with the level of risk associated with an investment. We use 'maximum decline' as a measure of risk. It represents the largest decline in value experienced during the previous 12 months.
^ This is the annualised standard deviation calculated from weekly returns of the Portfolio over the 5 years ending 31 March 2020. For more details on the Portfolio’s Maximum Decline and Volatility please contact NZ Funds.
Note
Rounding may affect the subtotals and totals.
Composite Strategy
** The Composite Strategy is used to illustrate the long-term performance of the investment approach used in managing the Dividend and Growth Portfolio.
The Composite Strategy does not represent the historic returns of the Dividend and Growth Portfolio.
It illustrates the historical performance of the NZ Funds approach of managing assets of the type held within the Dividend and Growth Portfolio.
The Composite Strategy is tax-adjusted to remove, as much as possible, the impact of the different tax regimes that applied during the calculation period. Returns are stated after Portfolio fees and expenses, but before any advisory fees or investor tax.
For more detail on the calculation of the Dividend and Growth Composite Strategy please contact NZ Funds.
The performance of the Dividend and Growth Composite Strategy is not an indication of the future returns of the Dividend and Growth Portfolio.
Notes
53
NZ Funds KiwiSaver Scheme
54
NZ Funds KiwiSaver Scheme Income StrategyPerformance since inception (31 October 2010) to 30 April 2020
Strategy returns* Year-to-date 1 month 3 months 6 months 1 year 2 years† 5 years†Since
inceptionMaximum decline
12 monthsX
Volatility 5 years^
Income Strategy -2.85% 3.83% -4.56% -2.86% 1.48% 6.30% 17.23% 42.00% -10.48% 3.16%
55
Strategy / SecurityEstimated
yield1
Credit rating
Portfolio exposure %
Portfolio exposure $
cash and cash equivalents 31.2% $11,191,084
australasian bonds 41.8% $14,999,909
Vector Ltd 4.996% 14/03/2024 2.4% BBB 5.0% $1,798,744Westpac Banking 4.695% 01/09/2026 4.4% BBB 3.2% $1,163,382WEL Networks 4.9% 02/08/2023 3.8% NR 2.8% $1,010,584Precinct Properties New Zealand 4.42% 27/11/2024 3.4% NR 2.6% $930,060Insurance Australia Group 5.15% 15/06/2043 4.3% BBB 2.4% $857,962Property for Industry 4.59% 28/11/2024 3.2% NR 2.2% $799,665Westpac floating perpetual 1.2% BBB+ 2.2% $776,684Fletcher Building 3.9% 15/03/2025 5.9% NR 2.0% $735,313Powerco 4.67% 15/11/2024 2.3% BBB 2.0% $713,633Infratil 5.5% 15/06/2024 5.7% NR 1.7% $610,512Housing NZ Ltd 3.36% 12/06/2025 1.1% AA+ 1.7% $595,991NEXTDC 6.25% 09/06/2021 4.9% NR 1.6% $569,428Fletcher Building Industries 4.75% 15/03/2021 5.5% NR 1.4% $506,008Property for Industry 4.25% 01/10/2025 3.3% NR 1.4% $500,134Peet 6.75% 07/06/2024 6.8% NR 1.4% $497,943New Zealand Government Bond 1.5% 15/05/2031 1.1% AA+ 1.2% $444,586Westpac Banking floating 27/08/2029 3.2% BBB+ 1.1% $390,072Trustpower 3.97% 22/02/2029 3.6% NR 0.9% $333,625Trustpower 4.01% 15/12/2022 2.9% NR 0.9% $328,118
Complete Strategy as at 20 April 2020
NZ Funds KiwiSaver Scheme Income Strategy
56
Complete Strategy as at 20 April 2020 (continued)
NZ Funds KiwiSaver Scheme Income Strategy
ANZ floating perpetual 1.3% BBB+ 0.8% $276,381Mercury NZ 3.6% 11/07/2049 3.3% BB+ 0.8% $273,901Spark Finance 2.6% 18/03/2030 2.6% A- 0.7% $260,806New Zealand interest rate swaps exposure n/a n/a 0.6% $216,509Argosy Property 2.9% 29/10/2026 4.0% NR 0.5% $193,391Trustpower Ltd 3.35% 29/07/2026 3.4% NR 0.3% $102,338Metlifecare Ltd 3% 30/09/2026 4.2% NR 0.2% $86,933National Australia Bank Income Securities perpetual 0.0% BBB- 0.1% $27,208
international bonds 28.2% $10,125,833
American Homes 4 Rent 4.9% 15/02/2029 3.7% BBB- 3.3% $1,191,549JPMorgan Chase 3.625% 01/12/2027 1.7% BBB+ 2.8% $1,006,887Southern Copper 7.50% 27/07/2035 4.2% BBB+ 2.7% $958,339Goldman Sachs 3.5% 01/04/2025 1.5% BBB+ 2.4% $872,822Citigroup Inc 4.125% 25/07/2028 2.3% BBB 2.3% $822,984AT&T Inc 4.35% 01/03/2029 1.8% BBB 2.1% $754,956Netflix 5.375% 15/11/2029 3.3% BB- 2.1% $747,800Uber Technologies 8% 01/11/2026 6.7% CCC+ 1.7% $606,188Tyson Foods Inc 4.35% 01/03/2029 1.4% BBB+ 1.6% $561,072McDonald's Corp 2.625% 01/09/2029 1.4% BBB+ 1.3% $482,722Verizon Communications Inc 4.016% 03/12/2029 1.3% BBB+ 1.3% $479,520
Strategy / SecurityEstimated
yield1
Credit rating
Strategy exposure %
Strategy exposure $
australasian bonds (continued)
57
Complete Strategy as at 20 April 2020 (continued)
NZ Funds KiwiSaver Scheme Income Strategy
1. The yield calculation represents an estimate of the yield on the Strategy, calculated using the most recent information provided by the external investment managers involved in managing the Strategy, hedged back to New Zealand dollars where appropriate. It is not calculated 'as at' any particular date as different external investment managers provide data at varying dates. As a result, in some instances the yields may lag the date of this Strategy summary. The yield is not the actual return on the Strategy, nor is it a projection or forecast. The Strategy's return could be less than the Strategy's yield. Details of the yield calculation are available on request from NZ Funds.
2. Credit default swaps notional value is currently $30,084,257. 3. Total economic exposure represents the total economic value of a Strategy, which is the net asset value of the Strategy adjusted for the effect of direct derivative positions taken
by the Strategy and indirect derivative positions taken other than via a fund including hedge funds. For more details of the total economic exposure calculations, contact NZ Funds. Note: Rounding may affect any subtotals and totals.
Strategy / SecurityEstimated
yield1
Credit rating
Strategy exposure %
Strategy exposure $
Oracle Corp 2.8% 01/04/2027 1.1% A+ 1.2% $438,867Bank of America Corp 3.864% 23/07/2024 1.1% A- 0.8% $300,472Dell 6.02% 15/06/2026 3.4% BBB- 0.8% $276,664Credit default swaps - Market value2 n/a n/a 0.6% $224,295British Telecom 5.125% 04/12/2028 2.4% BBB 0.6% $220,183Broadcom Inc 4.25% 15/04/2026 2.4% BBB- 0.5% $174,602United States bond futures n/a n/a 0.0% $5,910
total economic exposure3 101.2% $36,316,825
foreign currency exposure 2.2% $774,082
international bonds (continued)
58
NZ Funds KiwiSaver Scheme Income Strategy
NZ Funds KiwiSaver Scheme Income Strategy
* Returns are stated after Strategy fees and expenses, but before any advisory fees or investor tax. Past performance is not necessarily an indication of future returns.
† Cumulative returns.
Maximum Decline and Volatility
x Returns should be looked at in conjunction with the level of risk associated with an investment. We use 'maximum decline' as a measure of risk. It represents the largest decline in value experienced during the previous 12 months.
^ This is the annualised standard deviation calculated from weekly returns of the Strategy over the 5 years ending 31 March 2020. For more details on the Strategy’s Maximum Decline and Volatility please contact NZ Funds.
Note
Rounding may affect the subtotals and totals.
Notes
59
NZ Funds KiwiSaver Scheme Inflation StrategyPerformance since inception (31 October 2010) to 30 April 2020
Strategy returns* Year-to-date 1 month 3 months 6 months 1 year 2 years† 5 years†Since
inceptionMaximum decline
12 monthsX
Volatility 5 years^
Inflation Strategy -7.18% 5.30% -8.26% -4.04% -1.19% 5.14% 12.52% 53.86% -21.36% 10.42%
60
Strategy / Security1 Estimated yield2
Portfolio exposure %
Portfolio exposure $
cash and cash equivalents 13.6% $7,364,218
australasian bonds 0.3% $147,209
Westpac term deposit 2.0% 0.1% $49,625New Zealand inflation swaps exposure n/a 0.2% $97,584
international bonds 20.8% $11,248,441
Floating Rate and Perpetual Bond Strategy 1.0% 19.9% $10,799,174Inflation swaps - Market value3 n/a 0.8% $449,267
australasian shares 32.2% $17,448,502
Dividend and Growth Strategy 3.8% 32.2% $17,448,502
international shares 29.3% $15,873,179
Equity index futures (long) n/a 11.9% $6,449,906MFS Global Research Focused Fund 0.2% 6.4% $3,469,332Suvretta Offshore Fund n/a 5.3% $2,845,178LSV Global Concentrated Fund 0.6% 2.9% $1,579,955Emerson Point Capital Partners LP n/a 2.2% $1,199,440Global share options n/a 0.6% $329,370
NZ Funds KiwiSaver Scheme Inflation StrategyComplete Strategy as at 20 April 2020
61
Strategy / Security1 Estimated yield2
Portfolio exposure %
Portfolio exposure $
NZ Funds KiwiSaver Scheme Inflation StrategyComplete Strategy as at 20 April 2020 (continued)
1. Where a strategy is shown, the asset class reflects the predominant assets in the strategy. The strategy may include other assets including cash. 2. The yield calculation represents an estimate of the yield on the Strategy, calculated using the most recent information provided by the external investment managers involved in
managing the Strategy, hedged back to New Zealand dollars where appropriate. It is not calculated 'as at' any particular date as different external investment managers provide data at varying dates. As a result, in some instances the yields may lag the date of this Strategy summary. The yield is not the actual return on the Strategy, nor is it a projection or forecast. The Strategy's return could be less than the Strategy's yield. Details of the yield calculation are available on request from NZ Funds.
3. Inflation swaps notional value is currently $7,629,817. 4. Total economic exposure represents the total economic value of a Strategy, which is the net asset value of the Strategy adjusted for the effect of direct derivative positions taken
by the Strategy and indirect derivative positions taken other than via a fund including hedge funds. For more details of the total economic exposure calculations, contact NZ Funds. Note: Rounding may affect any subtotals and totals.
commodities 5.2% $2,806,392
Commodities precious metal futures exposure n/a 5.0% $2,720,367Commodity base metals option exposure n/a 0.2% $86,024
alternative securities 1.4% $733,949
Universa Black Swan Protection Protocol n/a 1.4% $733,949
total economic exposure4 102.7% $55,621,888
foreign currency exposure 10.0% $5,414,597
62
NZ Funds KiwiSaver Scheme Inflation Strategy
NZ Funds KiwiSaver Scheme Inflation Strategy
* Returns are stated after Strategy fees and expenses, but before any advisory fees or investor tax. Past performance is not necessarily an indication of future returns.
† Cumulative returns.
Maximum Decline and Volatility
x Returns should be looked at in conjunction with the level of risk associated with an investment. We use 'maximum decline' as a measure of risk. It represents the largest decline in value experienced during the previous 12 months.
^ This is the annualised standard deviation calculated from weekly returns of the Strategy over the 5 years ending 31 March 2020. For more details on the Strategy’s Maximum Decline and Volatility please contact NZ Funds.
Note
Rounding may affect the subtotals and totals.
Notes
63
NZ Funds KiwiSaver Scheme Growth StrategyPerformance since inception (31 October 2010) to 30 April 2020
Strategy returns* Year-to-date 1 month 3 months 6 months 1 year 2 years† 5 years†Since
inceptionMaximum decline
12 monthsX
Volatility 5 years^
Growth Strategy -8.88% 5.38% -10.63% -5.33% -6.99% -1.90% 12.03% 77.84% -22.60% 13.47%
64
NZ Funds KiwiSaver Scheme Growth Strategy
Strategy / Security1 Estimated yield2
Portfolio exposure %
Portfolio exposure $
Complete Strategy as at 20 April 2020
cash and cash equivalents 1.0% $1,988,547
international bonds 0.6% $1,278,455
Credit default swaps - Market value3 n/a 0.6% $1,278,455
australasian shares 27.4% $54,448,060
Dividend and Growth Strategy 3.8% 27.4% $54,448,060
international shares 60.2% $119,788,637
Equity index futures (long) n/a 19.8% $39,275,998MFS Global Research Focused Fund 0.2% 13.0% $25,757,127Suvretta Offshore Fund n/a 10.4% $20,659,388LSV Global Concentrated Fund 0.6% 6.1% $12,143,212Uber Technologies Inc 0.0% 4.7% $9,364,808Emerson Point Capital Partners LP n/a 4.4% $8,831,891Global share options n/a 1.1% $2,143,369Lyft 0.0% 0.8% $1,612,845
commodities 23.3% $46,367,225
Commodities precious metal futures exposure n/a 22.2% $44,177,995Commodity base metals option exposure n/a 1.1% $2,189,230
65
NZ Funds KiwiSaver Scheme Growth Strategy
Strategy / Security1 Estimated yield2
Portfolio exposure %
Portfolio exposure $
Complete Strategy as at 20 April 2020 (continued)
1. The yield calculation represents an estimate of the yield on the Strategy, calculated using the most recent information provided by the external investment managers involved in managing the Strategy, hedged back to New Zealand dollars where appropriate. It is not calculated 'as at' any particular date as different external investment managers provide data at varying dates. As a result, in some instances the yields may lag the date of this Strategy summary. The yield is not the actual return on the Strategy, nor is it a projection or forecast. The Strategy's return could be less than the Strategy's yield. Details of the yield calculation are available on request from NZ Funds.
2. Where a strategy is shown, the asset class reflects the predominant assets in the strategy. The strategy may include other assets including cash. 3. Credit default swaps notional value is currently $172,222,308. 4. Total economic exposure represents the total economic value of a Strategy, which is the net asset value of the Strategy adjusted for the effect of direct derivative positions taken
by the Strategy and indirect derivative positions taken other than via a fund including hedge funds. For more details of the total economic exposure calculations, contact NZ Funds. Note: Rounding may affect any subtotals and totals.
alternative securities 2.7% $5,323,199
Universa Black Swan Protection Protocol n/a 2.7% $5,323,199
total economic exposure4 115.3% $229,194,123
foreign currency exposure 3.5% $6,893,551
66
NZ Funds KiwiSaver Scheme Growth Strategy
NZ Funds KiwiSaver Scheme Growth Strategy
* Returns are stated after Strategy fees and expenses, but before any advisory fees or investor tax. Past performance is not necessarily an indication of future returns.
† Cumulative returns.
Maximum Decline and Volatility
x Returns should be looked at in conjunction with the level of risk associated with an investment. We use 'maximum decline' as a measure of risk. It represents the largest decline in value experienced during the previous 12 months.
^ This is the annualised standard deviation calculated from weekly returns of the Strategy over the 5 years ending 31 March 2020. For more details on the Strategy’s Maximum Decline and Volatility please contact NZ Funds.
Note
Rounding may affect the subtotals and totals.
Notes
67
NZ Funds Managed Superannuation Service
68
NZ Funds Managed Superannuation Service Income Strategy - B ritish PoundsPerformance since inception (11 August 2017) to 30 April 2020
Strategy returns* Year-to-date 1 month 3 months 6 months 1 year 2 years† 3 years†Since
inceptionMaximum decline
12 monthsX
Volatility 5 years^
Income Strategy - British Pounds 1.08% 2.81% -4.40% -2.29% 5.44% 8.59% n/a 17.64% -12.53% 10.88%
This Strategy was previously known as the ROPS GBP Income Strategy.
69
Strategy / SecurityEstimated
yield1
Credit rating
Portfolio exposure %
Portfolio exposure $
cash and cash equivalents 31.2% $3,589,169
australasian bonds 41.8% $4,816,308
Vector Ltd 4.996% 14/03/2024 2.4% BBB 5.0% $577,557Westpac Banking 4.695% 01/09/2026 4.4% BBB 3.2% $373,549WEL Networks 4.9% 02/08/2023 3.8% NR 2.8% $324,488Precinct Properties New Zealand 4.42% 27/11/2024 3.4% NR 2.6% $298,632Insurance Australia Group 5.15% 15/06/2043 4.3% BBB 2.4% $275,482Property for Industry 4.59% 28/11/2024 3.2% NR 2.2% $256,764Westpac floating perpetual 1.2% BBB+ 2.2% $249,385Fletcher Building 3.9% 15/03/2025 5.9% NR 2.1% $236,101Powerco 4.67% 15/11/2024 2.3% BBB 2.0% $229,140Infratil 5.5% 15/06/2024 5.7% NR 1.7% $196,029Housing NZ Ltd 3.36% 12/06/2025 1.1% AA+ 1.7% $191,366NEXTDC 6.25% 09/06/2021 4.9% NR 1.6% $182,837Fletcher Building Industries 4.75% 15/03/2021 5.5% NR 1.4% $162,474Property for Industry 4.25% 01/10/2025 3.3% NR 1.4% $160,587Peet 6.75% 07/06/2024 6.8% NR 1.4% $159,884New Zealand Government Bond 1.5% 15/05/2031 1.1% AA+ 1.2% $142,752Westpac Banking floating 27/08/2029 3.2% BBB+ 1.1% $125,248Trustpower 3.97% 22/02/2029 3.6% NR 0.9% $107,123Trustpower 4.01% 15/12/2022 2.9% NR 0.9% $105,355ANZ floating perpetual 1.3% BBB+ 0.8% $88,743
Complete Strategy as at 20 April 2020
NZ Funds Managed Superannuation Service Income Strategy - B ritish PoundsThis Strategy was previously known as the ROPS GBP Income Strategy.
70
Complete Strategy as at 20 April 2020 (continued)
NZ Funds Managed Superannuation Service Income Strategy - B ritish Pounds
Mercury NZ 3.6% 11/07/2049 3.3% BB+ 0.8% $87,947Spark Finance 2.6% 18/03/2030 2.6% A- 0.7% $83,742New Zealand interest rate swaps exposure n/a n/a 0.6% $69,519Argosy Property 2.9% 29/10/2026 4.0% NR 0.5% $62,096Trustpower Ltd 3.35% 29/07/2026 3.4% NR 0.3% $32,860Metlifecare Ltd 3% 30/09/2026 4.2% NR 0.2% $27,913National Australia Bank Income Securities perpetual 0.0% BBB- 0.1% $8,736
international bonds 28.2% $3,251,295
American Homes 4 Rent 4.9% 15/02/2029 3.7% BBB- 3.3% $382,593JPMorgan Chase 3.625% 01/12/2027 1.7% BBB+ 2.8% $323,301Southern Copper 7.50% 27/07/2035 4.2% BBB+ 2.7% $307,712Goldman Sachs 3.5% 01/04/2025 1.5% BBB+ 2.4% $280,254Citigroup Inc 4.125% 25/07/2028 2.3% BBB 2.3% $264,251AT&T Inc 4.35% 01/03/2029 1.8% BBB 2.1% $242,408Netflix 5.375% 15/11/2029 3.3% BB- 2.1% $240,111Uber Technologies 8% 01/11/2026 6.7% CCC+ 1.7% $194,640Tyson Foods Inc 4.35% 01/03/2029 1.4% BBB+ 1.6% $180,154McDonald's Corp 2.625% 01/09/2029 1.4% BBB+ 1.3% $154,997Verizon Communications Inc 4.016% 03/12/2029 1.3% BBB+ 1.3% $153,969Oracle Corp 2.8% 01/04/2027 1.1% A+ 1.2% $140,915
Strategy / SecurityEstimated
yield1
Credit rating
Strategy exposure %
Strategy exposure $
This Strategy was previously known as the ROPS GBP Income Strategy.
australasian bonds (continued)
71
Complete Strategy as at 20 April 2020 (continued)
NZ Funds Managed Superannuation Service Income Strategy - B ritish Pounds
1. The yield calculation represents an estimate of the yield on the Strategy, calculated using the most recent information provided by the external investment managers involved in managing the Strategy, hedged back to New Zealand dollars where appropriate. It is not calculated 'as at' any particular date as different external investment managers provide data at varying dates. As a result, in some instances the yields may lag the date of this Strategy summary. The yield is not the actual return on the Strategy, nor is it a projection or forecast. The Strategy's return could be less than the Strategy's yield. Details of the yield calculation are available on request from NZ Funds.
2. Credit default swaps notional value is currently $9,659,728.3. Total economic exposure represents the total economic value of a Strategy, which is the net asset value of the Strategy adjusted for the effect of direct derivative positions taken
by the Strategy and indirect derivative positions taken other than via a fund including hedge funds. For more details of the total economic exposure calculations, contact NZ Funds. Note: Rounding may affect any subtotals and totals.
Strategy / SecurityEstimated
yield1
Credit rating
Strategy exposure %
Strategy exposure $
This Strategy was previously known as the ROPS GBP Income Strategy.
international bonds (continued)
Bank of America Corp 3.864% 23/07/2024 1.1% A- 0.8% $96,478Dell 6.02% 15/06/2026 3.4% BBB- 0.8% $88,834Credit default swaps - Market value2 n/a n/a 0.6% $72,019British Telecom 5.125% 04/12/2028 2.4% BBB 0.6% $70,698Broadcom Inc 4.25% 15/04/2026 2.4% BBB- 0.5% $56,063United States bond futures n/a n/a 0.0% $1,898
total economic exposure3 101.2% $11,656,772
gbp currency exposure 97.1% $11,183,238
other foreign currency exposure 2.2% $248,246
72
NZ Funds Managed Superannuation Service Income Strategy - British Pounds
* Returns are stated after Strategy fees and expenses, but before any advisory fees or investor tax. Past performance is not necessarily an indication of future returns.
† Cumulative returns.
Maximum Decline and Volatility
x Returns should be looked at in conjunction with the level of risk associated with an investment. We use 'maximum decline' as a measure of risk. It represents the largest decline in value experienced during the previous 12 months.
^ This is the annualised standard deviation calculated using weekly returns of the Strategy and market index data over the 5 years ending 31 March 2020. Market index data is used for calculating the volatility prior to the inception date. For more details on the market index data, see the SIPO for the NZ Funds Managed Superannuation Service. For more details on the Strategy’s Maximum Decline and Volatility please contact NZ Funds.
Note
Rounding may affect the subtotals and totals.
Notes
NZ Funds Managed Superannuation Service Income Strategy - B ritish PoundsThis Strategy was previously known as the ROPS GBP Income Strategy.
73
NZ Funds Managed Superannuation Service Growth Strategy - B ritish PoundsPerformance since inception (3 December 2019) to 30 April 2020
Strategy returns* Year-to-date 1 month 3 months 6 months 1 year 2 years† 3 years†Since
inceptionMaximum decline
12 monthsX
Volatility 5 years^
Growth Strategy - British Pounds -5.61% 4.48% -10.20% n/a n/a n/a n/a -5.21% -23.81% 16.04%
74
Strategy / Security1 Estimated yield2
Portfolio exposure %
Portfolio exposure $
cash and cash equivalents 1.0% $22,509
international bonds 0.6% $14,495
Credit default swaps - Market value3 n/a 0.6% $14,495
australasian shares 27.4% $617,319
Dividend and Growth Strategy 3.8% 27.4% $617,319
international shares 60.3% $1,358,136
Equity index futures (long) n/a 19.8% $445,302MFS Global Research Focused Fund 0.2% 13.0% $292,028Suvretta Offshore Fund n/a 10.4% $234,231LSV Global Concentrated Fund 0.6% 6.1% $137,677Uber Technologies Inc 0.0% 4.7% $106,176Emerson Point Capital Partners LP n/a 4.4% $100,134Global share options n/a 1.1% $24,301Lyft 0.0% 0.8% $18,286
Complete Strategy as at 20 April 2020
NZ Funds Managed Superannuation Service Growth Strategy - B ritish Pounds
75
1. Where a strategy is shown, the asset class reflects the predominant assets in the strategy. The strategy may include other assets including cash. 2. The yield calculation represents an estimate of the yield on the Strategy, calculated using the most recent information provided by the external investment managers involved in
managing the Strategy, hedged back to New Zealand dollars where appropriate. It is not calculated 'as at' any particular date as different external investment managers provide data at varying dates. As a result, in some instances the yields may lag the date of this Strategy summary. The yield is not the actual return on the Strategy, nor is it a projection or forecast. The Strategy's return could be less than the Strategy's yield. Details of the yield calculation are available on request from NZ Funds.
3. Credit default swaps notional value is currently $1,952,616. 4. Total economic exposure represents the total economic value of a Strategy, which is the net asset value of the Strategy adjusted for the effect of direct derivative positions taken
by the Strategy and indirect derivative positions taken other than via a fund including hedge funds. For more details of the total economic exposure calculations, contact NZ Funds. Note: Rounding may affect any subtotals and totals.
Complete Strategy as at 20 April 2020 (continued)
Strategy / Security1 Estimated yield2
Portfolio exposure %
Portfolio exposure $
commodities 23.4% $525,701
Commodities precious metal futures exposure n/a 22.3% $500,880Commodity base metals option exposure n/a 1.1% $24,821
alternative securities 2.7% $60,353
Universa Black Swan Protection Protocol n/a 2.7% $60,353
total economic exposure3 115.4% $2,598,513
gbp currency exposure 93.4% $2,103,018
other foreign currency exposure 2.2% $49,813
NZ Funds Managed Superannuation Service Growth Strategy - B ritish Pounds
76
NZ Funds Managed Superannuation Service Growth Strategy - British Pounds
* Returns are stated after Strategy fees and expenses, but before any advisory fees or investor tax. Past performance is not necessarily an indication of future returns.
† Cumulative returns.
Maximum Decline and Volatility
x Returns should be looked at in conjunction with the level of risk associated with an investment. We use 'maximum decline' as a measure of risk. It represents the largest decline in value experienced during the previous 12 months.
^ This is the annualised standard deviation calculated using weekly returns of the Strategy and market index data over the 5 years ending 31 March 2020. Market index data is used for calculating the volatility prior to the inception date. For more details on the market index data, see the SIPO for the NZ Funds Managed Superannuation Service. For more details on the Strategy’s Maximum Decline and Volatility please contact NZ Funds.
Note
Rounding may affect the subtotals and totals.
Notes
NZ Funds Managed Superannuation Service Growth Strategy - B ritish Pounds
77
NZ Funds Managed Superannuation Service Income StrategyPerformance since inception (25 January 2017) to 30 April 2020
Strategy returns* Year-to-date 1 month 3 months 6 months 1 year 2 years† 3 years†Since
inceptionMaximum decline
12 monthsX
Volatility 5 years^
Income Strategy -2.77% 3.90% -4.45% -2.80% 1.50% 6.35% 8.28% 9.10% -10.45% 3.11%
78
Strategy / SecurityEstimated
yield1
Credit rating
Portfolio exposure %
Portfolio exposure $
cash and cash equivalents 29.6% $2,511,256
australasian bonds 42.8% $3,629,081
Vector Ltd 4.996% 14/03/2024 2.4% BBB 5.1% $435,189Westpac Banking 4.695% 01/09/2026 4.4% BBB 3.3% $281,469WEL Networks 4.9% 02/08/2023 3.8% NR 2.9% $244,501Precinct Properties New Zealand 4.42% 27/11/2024 3.4% NR 2.7% $225,019Insurance Australia Group 5.15% 15/06/2043 4.3% BBB 2.4% $207,575Property for Industry 4.59% 28/11/2024 3.2% NR 2.3% $193,471Westpac floating perpetual 1.2% BBB+ 2.2% $187,911Fletcher Building 3.9% 15/03/2025 5.9% NR 2.1% $177,902Powerco 4.67% 15/11/2024 2.3% BBB 2.0% $172,657Infratil 5.5% 15/06/2024 5.7% NR 1.7% $147,707Housing NZ Ltd 3.36% 12/06/2025 1.1% AA+ 1.7% $144,194NEXTDC 6.25% 09/06/2021 4.9% NR 1.6% $137,768Fletcher Building Industries 4.75% 15/03/2021 5.5% NR 1.4% $122,424Property for Industry 4.25% 01/10/2025 3.3% NR 1.4% $121,002Peet 6.75% 07/06/2024 6.8% NR 1.4% $120,472New Zealand Government Bond 1.5% 15/05/2031 1.1% AA+ 1.3% $107,563Westpac Banking floating 27/08/2029 3.2% BBB+ 1.1% $94,374Trustpower 3.97% 22/02/2029 3.6% NR 1.0% $80,717Trustpower 4.01% 15/12/2022 2.9% NR 0.9% $79,385ANZ floating perpetual 1.3% BBB+ 0.8% $66,868
Complete Strategy as at 20 April 2020
NZ Funds Managed Superannuation Service Income Strategy
79
Complete Strategy as at 20 April 2020 (continued)
NZ Funds Managed Superannuation Service Income Strategy
Mercury NZ 3.6% 11/07/2049 3.3% BB+ 0.8% $66,268Spark Finance 2.6% 18/03/2030 2.6% A- 0.7% $63,100New Zealand interest rate swaps exposure n/a n/a 0.6% $52,382Argosy Property 2.9% 29/10/2026 4.0% NR 0.6% $46,789Trustpower Ltd 3.35% 29/07/2026 3.4% NR 0.3% $24,760Metlifecare Ltd 3% 30/09/2026 4.2% NR 0.2% $21,033National Australia Bank Income Securities perpetual 0.0% BBB- 0.1% $6,583
international bonds 28.9% $2,449,846
American Homes 4 Rent 4.9% 15/02/2029 3.7% BBB- 3.4% $288,284JPMorgan Chase 3.625% 01/12/2027 1.7% BBB+ 2.9% $243,607Southern Copper 7.50% 27/07/2035 4.2% BBB+ 2.7% $231,861Goldman Sachs 3.5% 01/04/2025 1.5% BBB+ 2.5% $211,171Citigroup Inc 4.125% 25/07/2028 2.3% BBB 2.3% $199,113AT&T Inc 4.35% 01/03/2029 1.8% BBB 2.2% $182,654Netflix 5.375% 15/11/2029 3.3% BB- 2.1% $180,923Uber Technologies 8% 01/11/2026 6.7% CCC+ 1.7% $146,661Tyson Foods Inc 4.35% 01/03/2029 1.4% BBB+ 1.6% $135,746McDonald's Corp 2.625% 01/09/2029 1.4% BBB+ 1.4% $116,790Verizon Communications Inc 4.016% 03/12/2029 1.3% BBB+ 1.4% $116,015Oracle Corp 2.8% 01/04/2027 1.1% A+ 1.3% $106,180Bank of America Corp 3.864% 23/07/2024 1.1% A- 0.9% $72,696
Strategy / SecurityEstimated
yield1
Credit rating
Strategy exposure %
Strategy exposure $
australasian bonds (continued)
80
Complete Strategy as at 20 April 2020 (continued)
NZ Funds Managed Superannuation Service Income Strategy
1. The yield calculation represents an estimate of the yield on the Strategy, calculated using the most recent information provided by the external investment managers involved in managing the Strategy, hedged back to New Zealand dollars where appropriate. It is not calculated 'as at' any particular date as different external investment managers provide data at varying dates. As a result, in some instances the yields may lag the date of this Strategy summary. The yield is not the actual return on the Strategy, nor is it a projection or forecast. The Strategy's return could be less than the Strategy's yield. Details of the yield calculation are available on request from NZ Funds.
2. Credit default swaps notional value is currently $7,278,592 3. Total economic exposure represents the total economic value of a Strategy, which is the net asset value of the Strategy adjusted for the effect of direct derivative positions taken
by the Strategy and indirect derivative positions taken other than via a fund including hedge funds. For more details of the total economic exposure calculations, contact NZ Funds. Note: Rounding may affect any subtotals and totals.
Strategy / SecurityEstimated
yield1
Credit rating
Strategy exposure %
Strategy exposure $
international bonds (continued)
Dell 6.02% 15/06/2026 3.4% BBB- 0.8% $66,936Credit default swaps - Market value2 n/a n/a 0.6% $54,266British Telecom 5.125% 04/12/2028 2.4% BBB 0.6% $53,271Broadcom Inc 4.25% 15/04/2026 2.4% BBB- 0.5% $42,243United States bond futures n/a n/a 0.0% $1,430
total economic exposure3 101.3% $8,590,184
foreign currency exposure 2.2% $187,282
81
NZ Funds Managed Superannuation Service Income Strategy
NZ Funds Managed Superannuation Service Income Strategy
* Returns are stated after Strategy fees and expenses, but before any advisory fees or investor tax. Past performance is not necessarily an indication of future returns.
† Cumulative returns.
Maximum Decline and Volatility
x Returns should be looked at in conjunction with the level of risk associated with an investment. We use 'maximum decline' as a measure of risk. It represents the largest decline in value experienced during the previous 12 months.
^ This is the annualised standard deviation calculated using weekly returns of the Strategy and market index data over the 5 years ending 31 March 2020. Market index data is used for calculating the volatility prior to the inception date. For more details on the market index data, see the SIPO for the NZ Funds Managed Superannuation Service. For more details on the Strategy’s Maximum Decline and Volatility please contact NZ Funds.
Note
Rounding may affect the subtotals and totals.
Notes
82
NZ Funds Managed Superannuation Service Inflation StrategyPerformance since inception (25 January 2017) to 30 April 2020
Strategy returns* Year-to-date 1 month 3 months 6 months 1 year 2 years† 3 years†Since
inceptionMaximum decline
12 monthsX
Volatility 5 years^
Inflation Strategy -7.14% 5.31% -8.08% -3.65% -1.06% 5.10% 12.02% 11.51% -21.15% 9.42%
83
Strategy / Security1 Estimated yield2
Portfolio exposure %
Portfolio exposure $
cash and cash equivalents 13.5% $1,490,646
australasian bonds 0.3% $30,082
Westpac term deposit 2.0% 0.1% $10,141New Zealand inflation swaps exposure n/a 0.2% $19,941
international bonds 20.8% $2,298,594
Floating Rate and Perpetual Bond Strategy 1.0% 20.0% $2,206,788Inflation swaps - Market value3 n/a 0.8% $91,807
australasian shares 32.2% $3,565,563
Dividend and Growth Strategy 3.8% 32.2% $3,565,563
international shares 29.3% $3,243,650
Equity index futures (long) n/a 11.9% $1,318,024MFS Global Research Focused Fund 0.2% 6.4% $708,950Suvretta Offshore Fund n/a 5.3% $581,406LSV Global Concentrated Fund 0.6% 2.9% $322,860Emerson Point Capital Partners LP n/a 2.2% $245,103Global share options n/a 0.6% $67,306
Complete Strategy as at 20 April 2020
NZ Funds Managed Superannuation Service Inflation Strategy
84
Strategy / Security1 Estimated yield2
Portfolio exposure %
Portfolio exposure $
Complete Strategy as at 20 April 2020 (continued)
1. Where a strategy is shown, the asset class reflects the predominant assets in the strategy. The strategy may include other assets including cash. 2. The yield calculation represents an estimate of the yield on the Strategy, calculated using the most recent information provided by the external investment managers involved in
managing the Strategy, hedged back to New Zealand dollars where appropriate. It is not calculated 'as at' any particular date as different external investment managers provide data at varying dates. As a result, in some instances the yields may lag the date of this Strategy summary. The yield is not the actual return on the Strategy, nor is it a projection or forecast. The Strategy's return could be less than the Strategy's yield. Details of the yield calculation are available on request from NZ Funds.
3. Inflation swaps notional value is currently $1,559,137. 4. Total economic exposure represents the total economic value of a Strategy, which is the net asset value of the Strategy adjusted for the effect of direct derivative positions taken
by the Strategy and indirect derivative positions taken other than via a fund including hedge funds. For more details of the total economic exposure calculations, contact NZ Funds. Note: Rounding may affect any subtotals and totals.
NZ Funds Managed Superannuation Service Inflation Strategy
commodities 5.2% $573,480
Commodities precious metal futures exposure n/a 5.0% $555,901Commodity base metals option exposure n/a 0.2% $17,579
alternative securities 1.4% $149,981
Universa Black Swan Protection Protocol n/a 1.4% $149,981
total economic exposure4 102.7% $11,351,996
foreign currency exposure 10.0% $1,106,461
85
NZ Funds Managed Superannuation Service Inflation Strategy
* Returns are stated after Strategy fees and expenses, but before any advisory fees or investor tax. Past performance is not necessarily an indication of future returns.
† Cumulative returns.
Maximum Decline and Volatility
x Returns should be looked at in conjunction with the level of risk associated with an investment. We use 'maximum decline' as a measure of risk. It represents the largest decline in value experienced during the previous 12 months.
^ This is the annualised standard deviation calculated using weekly returns of the Strategy and market index data over the 5 years ending 31 March 2020. Market index data is used for calculating the volatility prior to the inception date. For more details on the market index data, see the SIPO for the NZ Funds Managed Superannuation Service. For more details on the Strategy’s Maximum Decline and Volatility please contact NZ Funds.
Note
Rounding may affect the subtotals and totals.
Notes
NZ Funds Managed Superannuation Service Inflation Strategy
86
NZ Funds Managed Superannuation Service Growth StrategyPerformance since inception (25 January 2017) to 30 April 2020
Strategy returns* Year-to-date 1 month 3 months 6 months 1 year 2 years† 3 years†Since
inceptionMaximum decline
12 monthsX
Volatility 5 years^
Growth Strategy -9.25% 5.52% -10.47% -5.61% -6.40% -1.15% 9.23% 10.52% -22.53% 12.64%
87
Strategy / Security1 Estimated yield2
Portfolio exposure %
Portfolio exposure $
cash and cash equivalents 1.0% $315,162
international bonds 0.6% $202,561
Credit default swaps - Market value3 n/a 0.6% $202,561
australasian shares 27.4% $8,626,871
Dividend and Growth Strategy 3.8% 27.4% $8,626,871
international shares 60.2% $18,979,577
Equity index futures (long) n/a 19.7% $6,222,976MFS Global Research Focused Fund 0.2% 12.9% $4,081,016Suvretta Offshore Fund n/a 10.4% $3,273,319LSV Global Concentrated Fund 0.6% 6.1% $1,923,997Uber Technologies Inc 0.0% 4.7% $1,483,781Emerson Point Capital Partners LP n/a 4.4% $1,399,344Global share options n/a 1.1% $339,600Lyft 0.0% 0.8% $255,543
Complete Strategy as at 20 April 2020
NZ Funds Managed Superannuation Service Growth Strategy
88
1. Where a strategy is shown, the asset class reflects the predominant assets in the strategy. The strategy may include other assets including cash. 2. The yield calculation represents an estimate of the yield on the Strategy, calculated using the most recent information provided by the external investment managers involved in
managing the Strategy, hedged back to New Zealand dollars where appropriate. It is not calculated 'as at' any particular date as different external investment managers provide data at varying dates. As a result, in some instances the yields may lag the date of this Strategy summary. The yield is not the actual return on the Strategy, nor is it a projection or forecast. The Strategy's return could be less than the Strategy's yield. Details of the yield calculation are available on request from NZ Funds.
3. Credit default swaps notional value is currently $27,287,284. 4. Total economic exposure represents the total economic value of a Strategy, which is the net asset value of the Strategy adjusted for the effect of direct derivative positions taken
by the Strategy and indirect derivative positions taken other than via a fund including hedge funds. For more details of the total economic exposure calculations, contact NZ Funds. Note: Rounding may affect any subtotals and totals.
Complete Strategy as at 20 April 2020 (continued)
NZ Funds Managed Superannuation Service Growth Strategy
Strategy / Security1 Estimated yield2
Portfolio exposure %
Portfolio exposure $
commodities 23.3% $7,346,526
Commodities precious metal futures exposure n/a 22.2% $6,999,659Commodity base metals option exposure n/a 1.1% $346,866
alternative securities 2.7% $843,419
Universa Black Swan Protection Protocol n/a 2.7% $843,419
total economic exposure4 115.2% $36,314,117
foreign currency exposure 3.5% $1,092,472
89
NZ Funds Managed Superannuation Service Growth Strategy
* Returns are stated after Strategy fees and expenses, but before any advisory fees or investor tax. Past performance is not necessarily an indication of future returns.
† Cumulative returns.
Maximum Decline and Volatility
x Returns should be looked at in conjunction with the level of risk associated with an investment. We use 'maximum decline' as a measure of risk. It represents the largest decline in value experienced during the previous 12 months.
^ This is the annualised standard deviation calculated using weekly returns of the Strategy and market index data over the 5 years ending 31 March 2020. Market index data is used for calculating the volatility prior to the inception date. For more details on the market index data, see the SIPO for the NZ Funds Managed Superannuation Service. For more details on the Strategy’s Maximum Decline and Volatility please contact NZ Funds.
Note
Rounding may affect the subtotals and totals.
Notes
NZ Funds Managed Superannuation Service Growth Strategy
90
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91
NZ Funds WealthBuilder
92
NZ Funds WealthBuilder Income StrategyPerformance since inception (27 February 2020) to 30 April 2020
Strategy returns* Year-to-date 1 month 3 months 6 months 1 year 2 years† 3 years†Since
inceptionMaximum decline
12 monthsX
Volatility 5 years^
Income Strategy -5.34% 3.90% n/a n/a n/a n/a n/a -5.34% 10.50% 3.16%
93
Strategy / SecurityEstimated
yield1
Credit rating
Portfolio exposure %
Portfolio exposure $
cash and cash equivalents 31.4% $296
australasian bonds 41.7% $393
Vector Ltd 4.996% 14/03/2024 2.4% BBB 5.0% $47Westpac Banking 4.695% 01/09/2026 4.4% BBB 3.2% $30WEL Networks 4.9% 02/08/2023 3.8% NR 2.8% $26Precinct Properties New Zealand 4.42% 27/11/2024 3.4% NR 2.6% $24Insurance Australia Group 5.15% 15/06/2043 4.3% BBB 2.4% $22Property for Industry 4.59% 28/11/2024 3.2% NR 2.2% $21Westpac floating perpetual 1.2% BBB+ 2.2% $20Fletcher Building 3.9% 15/03/2025 5.9% NR 2.0% $19Powerco 4.67% 15/11/2024 2.3% BBB 2.0% $19Infratil 5.5% 15/06/2024 5.7% NR 1.7% $16Housing NZ Ltd 3.36% 12/06/2025 1.1% AA+ 1.7% $16NEXTDC 6.25% 09/06/2021 4.9% NR 1.6% $15Fletcher Building Industries 4.75% 15/03/2021 5.5% NR 1.4% $13Property for Industry 4.25% 01/10/2025 3.3% NR 1.4% $13Peet 6.75% 07/06/2024 6.8% NR 1.4% $13New Zealand Government Bond 1.5% 15/05/2031 1.1% AA+ 1.2% $12Westpac Banking floating 27/08/2029 3.2% BBB+ 1.1% $10Trustpower 3.97% 22/02/2029 3.6% NR 0.9% $9Trustpower 4.01% 15/12/2022 2.9% NR 0.9% $9
Complete Strategy as at 20 April 2020
NZ Funds WealthBuilder Income Strategy
94
Complete Strategy as at 20 April 2020 (continued)
NZ Funds WealthBuilder Income Strategy
ANZ floating perpetual 1.3% BBB+ 0.8% $7Mercury NZ 3.6% 11/07/2049 3.3% BB+ 0.8% $7Spark Finance 2.6% 18/03/2030 2.6% A- 0.7% $7New Zealand interest rate swaps exposure n/a n/a 0.6% $6Argosy Property 2.9% 29/10/2026 4.0% NR 0.5% $5Trustpower Ltd 3.35% 29/07/2026 3.4% NR 0.3% $3Metlifecare Ltd 3% 30/09/2026 4.2% NR 0.2% $2National Australia Bank Income Securities perpetual 0.0% BBB- 0.1% $1
international bonds 28.1% $265
American Homes 4 Rent 4.9% 15/02/2029 3.7% BBB- 3.3% $31JPMorgan Chase 3.625% 01/12/2027 1.7% BBB+ 2.8% $26Southern Copper 7.50% 27/07/2035 4.2% BBB+ 2.7% $25Goldman Sachs 3.5% 01/04/2025 1.5% BBB+ 2.4% $23Citigroup Inc 4.125% 25/07/2028 2.3% BBB 2.3% $22AT&T Inc 4.35% 01/03/2029 1.8% BBB 2.1% $20Netflix 5.375% 15/11/2029 3.3% BB- 2.1% $20Uber Technologies 8% 01/11/2026 6.7% CCC+ 1.7% $16Tyson Foods Inc 4.35% 01/03/2029 1.4% BBB+ 1.6% $15McDonald's Corp 2.625% 01/09/2029 1.4% BBB+ 1.3% $13Verizon Communications Inc 4.016% 03/12/2029 1.3% BBB+ 1.3% $13
Strategy / SecurityEstimated
yield1
Credit rating
Strategy exposure %
Strategy exposure $
australasian bonds (continued)
95
Complete Strategy as at 20 April 2020 (continued)
NZ Funds WealthBuilder Income Strategy
1. The yield calculation represents an estimate of the yield on the Strategy, calculated using the most recent information provided by the external investment managers involved in managing the Strategy, hedged back to New Zealand dollars where appropriate. It is not calculated 'as at' any particular date as different external investment managers provide data at varying dates. As a result, in some instances the yields may lag the date of this Strategy summary. The yield is not the actual return on the Strategy, nor is it a projection or forecast. The Strategy's return could be less than the Strategy's yield. Details of the yield calculation are available on request from NZ Funds.
2. Credit default swaps notional value is currently $1,572. 3. Total economic exposure represents the total economic value of a Strategy, which is the net asset value of the Strategy adjusted for the effect of direct derivative positions taken
by the Strategy and indirect derivative positions taken other than via a fund including hedge funds. For more details of the total economic exposure calculations, contact NZ Funds. Note: Rounding may affect any subtotals and totals.
Strategy / SecurityEstimated
yield1
Credit rating
Strategy exposure %
Strategy exposure $
Oracle Corp 2.8% 01/04/2027 1.1% A+ 1.2% $12Bank of America Corp 3.864% 23/07/2024 1.1% A- 0.8% $8Dell 6.02% 15/06/2026 3.4% BBB- 0.8% $7Credit default swaps - Market value2 n/a n/a 0.6% $6British Telecom 5.125% 04/12/2028 2.4% BBB 0.6% $6Broadcom Inc 4.25% 15/04/2026 2.4% BBB- 0.5% $5United States bond futures n/a n/a 0.0% $0
total economic exposure3 101.2% $955
foreign currency exposure 2.2% $20
international bonds (continued)
96
NZ Funds WealthBuilder Income Strategy
NZ Funds WealthBuilder Income Strategy
* Returns are stated after Strategy fees and expenses, but before any advisory fees or investor tax. Past performance is not necessarily an indication of future returns.
† Cumulative returns.
Maximum Decline and Volatility
x Returns should be looked at in conjunction with the level of risk associated with an investment. We use 'maximum decline' as a measure of risk. It represents the largest decline in value experienced during the previous 12 months.
^ This is the annualised standard deviation calculated using weekly returns of the Strategy and market index data over the 5 years ending 31 March 2020. Market index data is used for calculating the volatility prior to the inception date. For more details on the market index data, see the Statement of Policy and Objectives. For more details on the Strategy’s Maximum Decline and Volatility, please contact NZ Funds.
Note
Rounding may affect the subtotals and totals.
Notes
97
NZ Funds WealthBuilder Inflation StrategyPerformance since inception (27 February 2020) to 30 April 2020
Strategy returns* Year-to-date 1 month 3 months 6 months 1 year 2 years† 3 years†Since
inceptionMaximum decline
12 monthsX
Volatility 5 years^
Inflation Strategy -6.58% 5.28% n/a n/a n/a n/a n/a -6.58% 17.63% 8.74%
98
Strategy / Security1 Estimated yield2
Portfolio exposure %
Portfolio exposure $
cash and cash equivalents 13.5% $128
australasian bonds 0.3% $3
Westpac term deposit 2.0% 0.1% $1New Zealand inflation swaps exposure n/a 0.2% $2
international bonds 20.8% $197
Floating Rate and Perpetual Bond Strategy 1.0% 20.0% $189Inflation swaps - Market value3 n/a 0.8% $8
australasian shares 32.2% $306
Dividend and Growth Strategy 3.8% 32.2% $306
international shares 29.3% $279
Equity index futures (long) n/a 11.9% $113MFS Global Research Focused Fund 0.2% 6.4% $61Suvretta Offshore Fund n/a 5.3% $50LSV Global Concentrated Fund 0.6% 2.9% $28Emerson Point Capital Partners LP n/a 2.2% $21Global share options n/a 0.6% $6
NZ Funds WealthBuilder Inflation StrategyComplete Strategy as at 20 April 2020
99
Strategy / Security1 Estimated yield2
Portfolio exposure %
Portfolio exposure $
NZ Funds WealthBuilder Inflation StrategyComplete Strategy as at 20 April 2020 (continued)
1. Where a strategy is shown, the asset class reflects the predominant assets in the strategy. The strategy may include other assets including cash. 2. The yield calculation represents an estimate of the yield on the Strategy, calculated using the most recent information provided by the external investment managers involved in
managing the Strategy, hedged back to New Zealand dollars where appropriate. It is not calculated 'as at' any particular date as different external investment managers provide data at varying dates. As a result, in some instances the yields may lag the date of this Strategy summary. The yield is not the actual return on the Strategy, nor is it a projection or forecast. The Strategy's return could be less than the Strategy's yield. Details of the yield calculation are available on request from NZ Funds.
3. Inflation swaps notional value is currently $134. 4. Total economic exposure represents the total economic value of a Strategy, which is the net asset value of the Strategy adjusted for the effect of direct derivative positions taken
by the Strategy and indirect derivative positions taken other than via a fund including hedge funds. For more details of the total economic exposure calculations, contact NZ Funds. Note: Rounding may affect any subtotals and totals.
commodities 5.2% $49
Commodities precious metal futures exposure n/a 5.0% $48Commodity base metals option exposure n/a 0.2% $2
alternative securities 1.4% $13
Universa Black Swan Protection Protocol n/a 1.4% $13
total economic exposure4 102.7% $975
foreign currency exposure 10.0% $95
100
NZ Funds WealthBuilder Inflation Strategy
NZ Funds WealthBuilder Inflation Strategy
* Returns are stated after Strategy fees and expenses, but before any advisory fees or investor tax. Past performance is not necessarily an indication of future returns.
† Cumulative returns.
Maximum Decline and Volatility
x Returns should be looked at in conjunction with the level of risk associated with an investment. We use 'maximum decline' as a measure of risk. It represents the largest decline in value experienced during the previous 12 months.
^ This is the annualised standard deviation calculated using weekly returns of the Strategy and market index data over the 5 years ending 31 March 2020. Market index data is used for calculating the volatility prior to the inception date. For more details on the market index data, see the Statement of Policy and Objectives. For more details on the Strategy’s Maximum Decline and Volatility, please contact NZ Funds.
Note
Rounding may affect the subtotals and totals.
Notes
101
NZ Funds WealthBuilder Growth StrategyPerformance since inception (27 February 2020) to 30 April 2020
Strategy returns* Year-to-date 1 month 3 months 6 months 1 year 2 years† 3 years†Since
inceptionMaximum decline
12 monthsX
Volatility 5 years^
Growth Strategy -8.48% 5.47% n/a n/a n/a n/a n/a -8.48% 17.46% 11.94%
102
NZ Funds WealthBuilder Growth Strategy
Strategy / Security1 Estimated yield2
Portfolio exposure %
Portfolio exposure $
cash and cash equivalents 1.0% $54
international bonds 0.6% $34
Credit default swaps - Market value3 n/a 0.6% $34
australasian shares 27.4% $1,469
Dividend and Growth Strategy 3.8% 27.4% $1,469
international shares 60.2% $3,231
Equity index futures (long) n/a 19.7% $1,060MFS Global Research Focused Fund 0.2% 12.9% $695Suvretta Offshore Fund n/a 10.4% $557LSV Global Concentrated Fund 0.6% 6.1% $328Uber Technologies Inc 0.0% 4.7% $253Emerson Point Capital Partners LP n/a 4.4% $238Global share options n/a 1.1% $58Lyft 0.0% 0.8% $44
Complete Strategy as at 20 April 2020
103
NZ Funds WealthBuilder Growth Strategy
Strategy / Security1 Estimated yield2
Portfolio exposure %
Portfolio exposure $
Complete Strategy as at 20 April 2020 (continued)
1. Where a strategy is shown, the asset class reflects the predominant assets in the strategy. The strategy may include other assets including cash. 2. The yield calculation represents an estimate of the yield on the Strategy, calculated using the most recent information provided by the external investment managers involved in
managing the Strategy, hedged back to New Zealand dollars where appropriate. It is not calculated 'as at' any particular date as different external investment managers provide data at varying dates. As a result, in some instances the yields may lag the date of this Strategy summary. The yield is not the actual return on the Strategy, nor is it a projection or forecast. The Strategy's return could be less than the Strategy's yield. Details of the yield calculation are available on request from NZ Funds.
3. Credit default swaps notional value is currently $4,646. 4. Total economic exposure represents the total economic value of a Strategy, which is the net asset value of the Strategy adjusted for the effect of direct derivative positions taken
by the Strategy and indirect derivative positions taken other than via a fund including hedge funds. For more details of the total economic exposure calculations, contact NZ Funds. Note: Rounding may affect any subtotals and totals.
commodities 23.3% $1,251
Commodities precious metal futures exposure n/a 22.2% $1,192Commodity base metals option exposure n/a 1.1% $59
alternative securities 2.7% $144
Universa Black Swan Protection Protocol n/a 2.7% $144
total economic exposure4 115.2% $6,183
foreign currency exposure 3.5% $186
104
NZ Funds WealthBuilder Growth Strategy
NZ Funds WealthBuilder Growth Strategy
* Returns are stated after Strategy fees and expenses, but before any advisory fees or investor tax. Past performance is not necessarily an indication of future returns.
† Cumulative returns.
Maximum Decline and Volatility
x Returns should be looked at in conjunction with the level of risk associated with an investment. We use 'maximum decline' as a measure of risk. It represents the largest decline in value experienced during the previous 12 months.
^ This is the annualised standard deviation calculated using weekly returns of the Strategy and market index data over the 5 years ending 31 March 2020. Market index data is used for calculating the volatility prior to the inception date. For more details on the market index data, see the Statement of Policy and Objectives. For more details on the Strategy’s Maximum Decline and Volatility, please contact NZ Funds.
Note
Rounding may affect the subtotals and totals.
Notes
105
Manager portfolios
106
Floating Rate and Perpetual Bond StrategyComplete Portfolio as at 20 April 2020
Strategy / SecurityEstimated
yield1
Portfolio exposure %
Portfolio exposure $
cash and cash equivalents 22.9% $20,832,090
australasian bonds 19.0% $17,219,416
New Zealand Government Bond 1.5% 15/05/2031 1.1% 13.4% $12,193,676New Zealand Government Bond 5.5% 15/04/2023 0.1% 5.3% $4,843,957New Zealand interest rate swaps exposure n/a 0.2% $181,784
international bonds 18.5% $16,829,880
United States Government Bond 1.5% 15/02/2030 0.0% 16.2% $14,684,422Credit default swaps - Market value2 n/a 2.4% $2,145,458
copper 6.1% $5,560,129
First Quantum Minerals 6.875% 01/03/2026 8.4% 6.1% $5,560,129
diversified banks 20.3% $18,442,325
National Australia Bank Income Securities perpetual 0.0% 20.3% $18,442,325
107
Floating Rate and Perpetual Bond StrategyComplete Portfolio as at 20 April 2020 (continued)
Strategy / SecurityEstimated
yield1
Portfolio exposure %
Portfolio exposure $
office reit's 5.5% $4,956,037
Precinct Properties New Zealand 4.8% 27/09/2021 0.0% 5.5% $4,956,037
specialised reit's 3.6% $3,288,522
Public Storage 5.2% 4.5% 3.6% $3,288,522
retail - regional department store 4.0% $3,650,045
David Jones Finance 28/11/2025 4.0% 4.0% $3,650,045
total nz funds exposure 100.0% $90,778,443
1. The yield is not the actual return on the portfolio, nor is it a projection or forecast. Details of the yield calculation are available on request from NZ Funds. The yield includes foreign currency hedging points where appropriate.
2. Credit default swaps notional value is currently $289,017,341. Note: Rounding may affect any subtotals and totals.
108
Strategy / Security1 Estimated yield2
Portfolio exposure %
Portfolio exposure $
international shares 21.1% $8,267,538
Pfizer 3.5% 2.6% $1,013,022Verizon Communications 3.6% 2.4% $932,408McKesson 0.5% 2.2% $880,217Biogen 0.0% 2.2% $844,665Nippon Telegraph & Telephone 4.5% 2.1% $825,148ITOCHU 4.7% 2.0% $770,272AT&T 6.1% 2.0% $763,649Sanofi 3.2% 1.9% $749,877Amgen 2.2% 1.9% $744,212Bristol-Myers Squibb 2.4% 1.9% $744,068
total exposure top 10 (excl. cash and cash equivalents) 21.1% $8,267,538
total nz funds exposure 100.0% $41,061,177
LSV Global Concentrated ACWI StrategyIndicative Top 10 as at 20 April 2020
1. This is the most recent information received from the manager 31 March 2020. Actual holdings as at 20 April 2020 may vary from those shown in the table. 2. The yield is not the actual return on the portfolio, nor is it a projection or forecast. Details of the yield calculation are available on request from NZ Funds. The yield includes
foreign currency hedging points where appropriate. Note: Rounding may affect any subtotals and totals.
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Strategy / Security1 Estimated yield2
Portfolio exposure %
Portfolio exposure $
international shares 34.1% $27,417,416
Amazon.com 0.0% - -CMS Energy 2.0% - -Fidelity National Information Services 0.5% - -Fiserv 0.0% - -Kansas City Southern 0.5% - -Medtronic 1.5% - -Microsoft 0.5% - -Mondelez International 1.7% - -Roper Technologies 0.0% - -Salesforce.com 0.0% - -
total exposure top 10 (excl. cash and cash equivalents) 34.1% $27,417,416
total nz funds exposure 100.0% $80,313,899
MFS Global Research Focused FundTop 10 as at 20 April 2020
1. Securities shown in the table are the top 10 highest exposure of the fund sorted in alphabetical order 2. The yield is not the actual return on the portfolio, nor is it a projection or forecast. Details of the yield calculation are available on request from NZ Funds. The yield includes
foreign currency hedging points where appropriate. Note: Rounding may affect any subtotals and totals. Note: Rounding may affect any subtotals and totals.
110
Strategy / SecurityEstimated
yield1
Portfolio exposure %
Portfolio exposure $
cash and cash equivalents 1.5% $4,294,445
australasian bonds 3.6% $10,082,795
Westpac term deposit 2.0% 3.6% $10,082,795
australasian shares 94.8% $264,152,162
Australian futures index exposure n/a 9.6% $26,781,359Spark New Zealand 7.7% 8.9% $24,702,608a2 Milk 0.2% 8.3% $23,050,783Meridian Energy 6.1% 7.9% $21,934,762Chorus 4.9% 7.8% $21,825,686Fisher & Paykel Healthcare 1.6% 6.8% $18,980,550Contact Energy 8.1% 6.2% $17,300,064Tower 4.6% 4.9% $13,783,821Ryman Healthcare 1.9% 4.0% $11,206,653Fletcher Building 6.9% 3.9% $10,896,296Mainfreight 2.3% 3.7% $10,233,744Infratil 4.8% 3.7% $10,178,304Auckland International Airport 2.9% 3.4% $9,400,499
NZ Funds Management Dividend and Growth StrategyComplete Portfolio as at 20 April 2020
111
Strategy / SecurityEstimated
yield1
Portfolio exposure %
Portfolio exposure $
NZ Funds Management Dividend and Growth StrategyComplete Portfolio as at 20 April 2020 (continued)
1. The yield calculation represents an estimate of the yield on the Portfolio, calculated using forecast dividends (Source: Bloomberg), NZ Funds' estimate of imputation credits where appropriate, and hedged back to New Zealand dollars where appropriate. The yield is not the actual return on the Portfolio, nor is it a projection or forecast. The Portfolio's return could be less than the Portfolio's yield. Details of the yield calculation are available on request from NZ Funds.
Note: Rounding may affect any subtotals and totals.
Ebos 3.5% 3.3% $9,322,007Summerset Group Holdings Ltd Snz 2.5% 3.0% $8,431,110Goodman Property Trust 3.1% 3.0% $8,369,476Port of Tauranga 3.1% 2.4% $6,810,593Precinct Properties New Zealand 4.7% 2.0% $5,649,961Kiwi Property Group Ltd 7.4% 1.9% $5,293,888
total nz funds exposure 100.0% $278,529,402
foreign currency exposure 4.1% $11,407,252
australasian shares (continued)
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Managers
114
as at 20 April 2020
External Managers
managersecurity /
style
nz funds advised portfolio service nz funds kiwisaver scheme nz funds managed superannuation service
core cash portfolio
core income
portfolio
global income
portfolio
core inflation portfolio
property inflation portfolio
equity inflation portfolio
core growth
portfolio
global equity
growth portfolio
dividend and
growth portfolio
income strategy
inflation strategy
growth strategy
income strategy - british pounds
growth strategy - british pounds
income strategy
inflation strategy
growth strategy
emerson point
alternative securities
lsvglobal
shares - active
mfsglobal
shares - active
suvretta capital
alternative securities
universa alternative securities
115
Important Legal Information
Please note that these Portfolio Insights have been provided for information purposes only. The content of this document is not intended as a substitute for specific professional advice on investments, financial planning or any other matter.
While the information provided in this document is stated accurately to the best of our knowledge and belief, NZ Funds, its directors, employees and related parties accept no liability or responsibility for any loss, damage, claim or expense suffered or incurred by any party as a result of reliance on the information provided and opinions expressed in this document except as required by law.
For further information or to request a copy of the NZ Funds Advised Portfolio Service* Product Disclosure Statement, the NZ Funds KiwiSaver Scheme Product Disclosure Statement, or the NZ Funds Managed Superannuation Service Product Disclosure Statement, please contact New Zealand Funds Management Limited or visit our website at www.nzfunds.co.nz.
* Previously known as the NZ Funds Managed Portfolio Service
New Zealand Funds Management Limited
Level 16, 21 Queen Street
Private Bag 92163, Auckland 1142 New Zealand
T. 09 377 2277 E. [email protected]
www.nzfunds.co.nz
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