Forsyth Barr New Zealand Equities Fund

Fund objectives and strategy

To maximise the capital returns available from investing in New Zealand listed shares by targeting absolute returns. This is a high conviction, “benchmark unaware” Fund. Stock selection will be influenced by the research screens developed by the Forsyth Barr Research team with portfolio stock selections revolving around securities the Manager chooses to own rather than what is prescribed by any particular index. The portfolio will be actively traded as appropriate given the tax free status of trading under the PIE regime. The Fund will be fully invested with cash holdings limited to 10% of the Fund or that required for transactional purposes. 

Minimum recommended investment time-frame

Investors should regard this as a medium to long–term investment of three to five years.

Currency

The Fund will be priced in New Zealand dollars. All applications and redemptions will be in New Zealand dollars. 

Unit pricing

Daily. Your Investment Advisor can provide you with details of the latest unit price for the Fund. 

Authorised investments

New Zealand listed shares, unit trusts, investment trusts, equity hybrid securities and cash. The Fund may also invest in shares intended to be listed on the New Zealand Exchange (NZX) within 12 months of investment and may participate in underwriting and sub-underwriting agreements. Cash may be held in Registered Banks (rated A-1 or higher by S&P), or through the Forsyth Barr Cash Management Service in the New Zealand dollar offering in the Westpac at-call unsecured debt security. The Fund is permitted to use derivatives. Derivatives, however, cannot be used to lever the Fund in any manner, nor create a contingent liability for the Fund.

Management and performance fee

In addition to the annual base management fee of 1.25%, the Manager is entitled to a performance fee equal to 10% of the Fund’s trust fund value plus GST where the Fund’s performance exceeds the benchmark hurdle rate, which is currently 10% per annum calculated on each business day on a compounded basis, over the previous financial year of the Fund (performance criteria). Any performance fee will be calculated on each business day and paid in arrears at the end of each financial year of the Fund. The performance fee is cumulative, and is accrued in the calculation of the trust fund value of the Fund, and paid from the assets of the Fund. If the Fund does not meet the performance criteria then a performance fee will not be payable to the Manager, and there will be no impact on the trust fund value. The formula for calculating the performance fee is set out in the Establishment Deed for the Fund. Performance fees are paid annually in arrears. 

Entry fee

1% of each contribution. The Manager has the discretion to waive this. 

Exit fee

On standing redemptions, an exit fee of 1% on the amount withdrawn will apply. The Manager has the discretion to waive this.