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Forsyth Barr Global Equities Fund

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

Unit Price

AS AT 4 May 2021

1.6922 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

1.6862 NZD

Manager's Comment

The biggest challenges for the Global Equities Fund over the past 12 months have been:

The 17% appreciation in the NZD, while the Global Equities Fund has been strategically positioned with an FX hedge ratio in the range of 20%-30% - lower than its benchmark of being 50% hedged.

The underperformance of the Health Care sector, to which the fund has increased its exposure to 21%, comprising both value and growth stocks. We maintain our view that the Health Care sector represents excellent value at current prices.

The rebound over the past four months in value sectors, namely Financials and Energy-related stocks.

The Global Equities Fund is managed with a growth bias. The majority of companies held in the portfolio are ones which the Manager assesses as offering good value for risk and as being capable of consistently achieving above average earnings growth looking forward. That said, the Global Equities Fund has pivoted towards value (currently 17% of the fund) by (1) owning deep value Health Care stocks; (2) adding Citigroup to the portfolio in October 2020; (3) introducing General Motors to the portfolio in February 2021, and (4) adding Nippon Telegraph & Telecom (NTT) in March 2021. We will continue to evaluate “value/cyclical” companies that meet our broader investment criteria, particularly where we believe there is upside potential to earnings.

Looking ahead, the majority of the  Global Equities Fund’s portfolio structure continues to target companies with above average earnings growth around the following key investment themes:

Technology. COVID-19 has accelerated the demand for innovation and technology. The fund’s key technology holdings are businesses that enable the use of technologies across numerous industries, such as NVIDIA (graphics processing units used in data centres, autonomous vehicles, gaming, artificial intelligence), Qualcomm (5G networks and associated demand for “internet-of-things” sensors) and Taiwan Semiconductor Manufacturing Company (TSMC - the undisputed global leader in semiconductor fabrication).

Content/Social Gaming. We believe the streaming trend that grew significantly through COVID-19 will be ongoing and social gaming stocks (e.g. Activision Blizzard) and the streaming market leader, Netflix, should both benefit from this. Over the March quarter the fund added these stocks to the Global Equities Fund.

Connected Health. Digitalising key processes in the health care system will help limit the rise in costs in this sector as populations age, whilst at the same time providing health benefits to patients. The Global Equities Fund has invested in five companies behind this theme: Abbott Laboratories, Baxter International, Boston Scientific, Royal Phillips and Medtronic.

Future-Proofing Your Business. The biggest risk facing global companies is being cyber-hacked, and one of the key holes in the defences of the majority of global companies is their continued use of old legacy software platforms designed in the 1990s. The future is in cloud-based security and smart applications. Companies that should benefit from this theme and are held by the Global Equities Fund include Microsoft, Amazon, Alibaba, Fortinet, Palo Alto, Salesforce and ServiceNow.

Global Consumer. The huge amount of cash that central banks have injected into economies globally has ironically boosted disposable incomes. The companies with the best business-to-consumer e-commerce offerings have benefited from this and are expected to continue to do well as economies open up, post-vaccines. Alibaba and Amazon are our two favoured consumer companies.

We actively manage the fund’s foreign currency exposures. As at 31 March 2021, these exposures represented 95.65% of the value of the fund. After allowing for foreign currency hedges in place, 71.67% of the value of the fund was unhedged and exposed to foreign currency risk.

 

Major Investments

As at 31 Mar 2021

Company name Volume
ANZ transactional bank account 5.44%
Amazon.com, Inc. 5.41%
Visa Inc.- Class A Shares 5.09%
Alphabet Inc Class A 4.21%
Takeda Pharmaceutical Co Limited 3.77%
Microsoft Corporation 3.61%
Alibaba Group Holding-Sp Adr 3.60%
Comcast Corp Class A 3.37%
Mondelez International Inc 3.17%
Baxter International Inc. 3.15%
Major holdings as % of total portfolio 40.81%
Total portfolio holdings 54

Performance over time

Return Comparison

As at 31 Mar 2021

1 Month 3 Months 1 Year 3 Years Since commenced operation
Net Fund Return 1 Month 4.80% 3 Months 4.06% 1 Year 24.30% 3 Years 11.29% Since commenced operation 3.61%
Gross Fund Return 1 Month 4.76% 3 Months 4.49% 1 Year 28.79% 3 Years 14.08% Since commenced operation 5.37%
MSCI ACWI Net TR Index (0% hedged to the NZD) 1 Month 6.58% 3 Months 7.50% 1 Year 30.87% 3 Years 13.18% Since commenced operation 7.95%
MSCI ACWI Net TR Index (50% hedged to the NZD) 1 Month 5.04% 3 Months 6.67% 1 Year 40.92% 3 Years 13.28% Since commenced operation 9.37%
MSCI ACWI Net TR Index (100% hedged to the NZD) 1 Month 3.50% 3 Months 5.82% 1 Year 51.44% 3 Years 13.18% Since commenced operation 10.44%

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

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

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 Global Equities Fund here.

Fund update

As at 31 March 2021

This document tells you how the Forsyth Barr Global 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 10.00%
New Zealand fixed interest 0.00%
International fixed interest 0.00%
Australasian equities 0.00%
International equities 90.00%
Listed property 0.00%

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 1.50% 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.

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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 Global 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.