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Forsyth Barr Australian Equities Fund

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

Unit Price

AS AT 4 May 2021

1.4154 NZD

The unit prices shown do not take into account any adjustment for PIE tax.
Buy/sell spreads may apply when transacting. There are currently none.

Month End Unit Price

As at 31 Mar 2021

1.3713 NZD

Manager's Comment

Market Commentary

The March quarter was a volatile period in the Australian share market. The seesaw of value versus growth was very apparent.  The underrepresentation (versus the New Zealand market) of interest rate defensive stocks saw the Australian market outperform the New Zealand market by close to 9% in the March quarter.  A much higher weighting to financials, materials, energy and industrials (generally beneficiaries of a higher interest rate environment) assisted this outperformance.

Portfolio Performance

The Forsyth Barr Australian Equities Fund increased by 4.31% (gross of fees and tax) in the quarter ending March 2021, underperforming the reference index by -0.74%. This brings the 12 month return to +39.84% (gross of fees and tax), a period which begins just post the COVID-19 market low, underperforming the reference index by -1.45%.

Key contributors to performance during the quarter under review included overweight positions in Capitol Health, Senex Energy, Telstra and South32. Key detractors to performance included overweight positions in Service Stream, Viva Energy, Northern Star Resources, and a2 Milk.

Outlook

As we enter the second quarter of the year we have reason to remain cautiously optimistic. Those countries that have had successful starts to their vaccine programmes have shown the rest of the world how effective vaccines are in controlling the rate of infection and hospital admissions. Some countries are already starting to re-open their economies more widely than others. While there is still a long way to go with many challenges remaining around the supply and distribution of vaccines for the whole world in the race against mutations and new variants, the signs so far look positive.

Long-term interest rates are rising because the growth outlook is a lot more positive and this is contributing to a lift in inflationary expectations. We regard this as a positive development for some sectors. Company earnings have been better than expected in many sectors and the earnings outlook should continue to be revised higher.

We actively manage the fund’s foreign currency exposures. As at 31 March 2021, these exposures represented 94.64% of the value of the fund. After allowing for foreign currency hedges in place, 61.62% of the value of the fund was unhedged and exposed to foreign currency risk.

 

Major Investments

As at 31 Mar 2021

Company name Volume
CSL Limited 7.39%
BHP Group Limited 6.32%
ANZ transactional bank account 5.36%
Westpac Banking Corporation Ltd 4.75%
Commonwealth Bank of Australia Limited 4.59%
National Australia Bank Ltd 3.56%
Telstra Corp 3.01%
Australia and New Zealand Banking Group Limited 3.01%
Rio Tinto Ltd 2.68%
Downer EDI Limited 2.52%
Major holdings as % of total portfolio 43.20%
Total portfolio holdings 73

Return Comparison

As at 31 Mar 2021

1 Month 3 Months 1 Year 3 Years Since commenced operation
Net Fund Return 1 Month 2.61% 3 Months 3.81% 1 Year 37.86% 3 Years 6.25% Since commenced operation 2.04%
Gross Fund Return 1 Month 2.74% 3 Months 4.31% 1 Year 39.84% 3 Years 8.38% Since commenced operation 3.93%
S&P/ASX Accumulation 200 Index (0% Hedged to the NZD) 1 Month 4.64% 3 Months 5.80% 1 Year 44.81% 3 Years 10.48% Since commenced operation 5.20%
S&P/ASX Accumulation 200 Index (50% Hedged to the NZD) 1 Month 3.55% 3 Months 5.05% 1 Year 41.29% 3 Years 10.19% Since commenced operation 5.87%
S&P/ASX Accumulation 200 Index (100% Hedged to the NZD) 1 Month 2.46% 3 Months 4.30% 1 Year 37.76% 3 Years 9.87% Since commenced operation 6.38%

The unit prices shown do not take into account any adjustment for PIE tax.

Net Fund Returns are calculated after deduction of fund charges, trading expenses and accrued tax for a New Zealand resident paying individual tax at the highest Prescribed Investor Rate (28%). Gross Fund Returns are calculated before deduction of taxes and fund charges but after deduction of trading expenses. Market index returns do not have any deductions for fund charges, trading expenses or tax.

The S&P/ASX Accumulation 200 Index (“Index”) is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by Forsyth Barr Limited. Copyright © 2015 S&P Dow Jones Indices LLC, a subsidiary of McGraw Hill Financial Inc., and/or its affiliates. All rights reserved. Redistribution, reproduction and/or photocopying in whole or in part are prohibited without written permission of S&P Dow Jones Indices LLC. For more information on any of S&P Dow Jones Indices LLC’s indices please visit www.spdji.com. S&P® is a registered trademark of Standard & Poor’s Financial Services LLC and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC. Neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their third party licensors make any representation or warranty, express or implied, as to the ability of any index to accurately represent the asset class or market sector that it purports to represent and neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their third party licensors shall have any liability for any errors, omissions, or interruptions of any index or the data included therein.

Morningstar Performance

Morningstar, are a leading global provider of independent investment research that rank and report on Funds within New Zealand and Australia. View the latest Fund Report for the Australian Equities Fund here.

Fund update

As at 31 March 2021

This document tells you how the Forsyth Barr Australian Equities Fund has performed and what fees were charged. The document will help you to compare the fund with other funds.

General Fund Information

Risk indicator

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LOWER RISK
HIGHER RISK

The risk indicator is rated from 1 (low) to 7 (high). The rating reflects how much the value of the relevant fund’s assets goes up and down (volatility). A higher risk generally means higher potential returns over time, but more ups and downs along the way. The risk indicator is based on the returns data for the five years to 31 March 2021. See more information about the risks of investing in the Product Disclosure Statement.

Target investment mix

Cash and cash equivalents 5.00%
New Zealand fixed interest 0.00%
International fixed interest 0.00%
Australasian equities 85.00%
International equities 0.00%
Listed property 10.00%

Things to note

  • Manager: Forsyth Barr Investment Management Limited
  • Date the fund started: 26 June 2008
  • Tax status: Portfolio Investment Fund (PIE)
  • Minimum suggested investment time frame: At least five years
  • Benchmark: None
  • Currency: New Zealand dollars
  • View the Product Disclosure Statement for detailed information about this Fund and Forsyth Barr Investment Funds Scheme.

Fees

Annual fund charges are currently 1.25% p.a. of the value of your investment. This means that we pay management and administration charges along with the Supervisor fee out of this. All fees and charges are quoted exclusive of GST.

Trail commission may be paid to a Financial Adviser responsible for your Investment Funds account. Any trail fee is paid by Forsyth Barr Limited and is not a separate charge on your Investment Funds account.

Forsyth Barr Investment Management is the manager of the Investment Funds. The comments on this webpage do not take your personal circumstances into account. Before acting on this information, please contact your Forsyth Barr Investment Adviser. Forsyth Barr Limited and its affiliates do not make any representation or warranty (express or implied) that this webpage is accurate, complete, or current and to the maximum extent permitted by law disclaim any liability for loss which may be incurred by any person relying on this webpage. This webpage is not intended to be distributed or made available to any person in any jurisdiction where doing so would constitute a breach of any applicable laws or regulations.

© 2021 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. Any general advice or ‘regulated financial advice’ under New Zealand law has been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. For more information refer to our Financial Services Guide (AU) or Financial Advice Provider Disclosure Statement (NZ) at www.morningstar.com.au/s/fsg.pdf and ww.morningstar.au/s/fapds.pdf. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser.
The Morningstar Rating is an assessment of a fund’s past performance – based on both return and risk – which shows how similar investments compare with their competitors. A high rating alone is insufficient basis for an investment decision.

 

Get in touch

23 locations around New Zealand

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