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.
AS AT 4 May 2021
Month End Unit Price
As at 31 Mar 2021
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.
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.
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.
As at 31 Mar 2021
|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%|
|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|
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.
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
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The risk indicator is rated from 1 (low) to 7 (high). The rating reflects how much the value of the relevant fund’s assets goes up and down (volatility). A higher risk generally means higher potential returns over time, but more ups and downs along the way. The risk indicator is based on the returns data for the five years to 31 March 2021. See more information about the risks of investing in the Product Disclosure Statement.
Target investment mix
|Cash and cash equivalents||5.00%|
|New Zealand fixed interest||0.00%|
|International fixed interest||0.00%|
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.
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