Performance

Core Cash Portfolio

Details

Strategy objective Strategy summary Risk category Minimum suggested investment timeframe
To provide a source of capital. Anticipated to mainly hold cash and cash equivalents. 1 month+

Performance

Performance since inception (28 February 2008) to 30 April 2021
Advised Portfolios Core Cash Performance Graph Advised Portfolios Core Cash Performance Table

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

  • Returns should be looked at in conjunction with the level of risk associated with an investment. 'Maximum decline' is a measure of risk. It represents the largest decline in value in the previous 12 months or since inception of the Portfolio if it has not existed for 12 months.
  • This is the annualised standard deviation calculated from weekly returns of the Portfolio over the 5 years ending 31 March 2021. For more details on the Portfolio’s Maximum Decline and Volatility please contact NZ Funds.

Note: Rounding may affect some numbers.

Portfolios

Core Cash Portfolio

Complete Portfolio as at 17 May 2021
Advised Portoflios Core Cash Portfolio Table


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. 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 on economic exposure, see the Other Material Information document on the Offer Register at www.companiesoffice.govt.nz/disclose.
Note: Rounding may affect any subtotals and totals.

Overview

Investment category Cash
Risk & volatility Please see the NZ Funds Advised Portfolio Service Product Disclosure Statement or the latest Fund Update for information on risk.
Withdrawal restriction The Portfolio has no withdrawal restrictions.
Further information Further information is contained in the NZ Funds Advised Portfolio Service Product Disclosure Statement.

Core Income Portfolio

Review

For the month of April 2021

April was a challenging month for the Income Category. After moving significantly higher during the first quarter, longer-term interest rates eased back from their highs during the month and this dragged down performance.

We believe that we are now in a transition period where markets have priced the initial economic rebound and the pickup in inflation off the lows, but remain uncertain as to how long lasting both will be. Despite this, we continue to see numerous signals that inflation pressures continue to build.

The prices of many commodities are hitting record highs, while the recent round of company earnings reports saw frequent discussion on the difficultly of sourcing staff and raw materials which in turn are leading to pricing pressures across the board. As a result, we have continued to adopt a defensive short interest rate stance to position the Category for a move higher in interest rates.

Details

Strategy objective Strategy summary Risk category Minimum suggested investment timeframe
To provide exposure to income assets. Anticipated to mainly hold New Zealand and Australian bonds. 2 years+

Performance

Performance since inception (23 July 2008) to 30 April 2021
Core Income Performance Graph Core Income Performance Table

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

  • Returns should be looked at in conjunction with the level of risk associated with an investment. 'Maximum decline' is a measure of risk. It represents the largest decline in value in the previous 12 months or since inception of the Portfolio if it has not existed for 12 months.
  • This is the annualised standard deviation calculated from weekly returns of the Portfolio over the 5 years ending 31 March 2021. For more details on the Portfolio’s Maximum Decline and Volatility please contact NZ Funds.

Note: Rounding may affect some numbers.

Portfolios

Core Income Portfolio

Complete Portfolio as at 17 May 2021
Core Income Portfolio Table


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 $157,033,672.
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 on economic exposure, see the Other Material Information document on the Offer Register at www.companiesoffice.govt.nz/disclose.
Note: Rounding may affect any subtotals and totals.

Overview

Investment category Income
Risk & volatility Please see the NZ Funds Advised Portfolio Service Product Disclosure Statement (PDS) or the latest Fund Update for information on risk.
Withdrawal restriction The Portfolio has a 21-day withdrawal notice period.
Further information Further information is contained in the NZ Funds Advised Portfolio Service Product Disclosure Statement.

Global Income Portfolio

Review

For the month of April 2021

April was a challenging month for the Income Category. After moving significantly higher during the first quarter, longer-term interest rates eased back from their highs during the month and this dragged down performance.

We believe that we are now in a transition period where markets have priced the initial economic rebound and the pickup in inflation off the lows, but remain uncertain as to how long lasting both will be. Despite this, we continue to see numerous signals that inflation pressures continue to build.

The prices of many commodities are hitting record highs, while the recent round of company earnings reports saw frequent discussion on the difficultly of sourcing staff and raw materials which in turn are leading to pricing pressures across the board. As a result, we have continued to adopt a defensive short interest rate stance to position the Category for a move higher in interest rates.

Details

Strategy objective Strategy summary Risk category Minimum suggested investment timeframe
To provide exposure to income assets. Anticipated to mainly hold international bonds. 2 years+

Performance

Performance since inception (31 October 2008) to 30 April 2021
Global Income Performance Graph Global Income Performance Table

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

  • Returns should be looked at in conjunction with the level of risk associated with an investment. 'Maximum decline' is a measure of risk. It represents the largest decline in value in the previous 12 months or since inception of the Portfolio if it has not existed for 12 months.
  • This is the annualised standard deviation calculated from weekly returns of the Portfolio over the 5 years ending 31 March 2021. For more details on the Portfolio’s Maximum Decline and Volatility please contact NZ Funds.

Note: Rounding may affect some numbers.

Portfolios

Global Income Portfolio

Complete Portfolio as at 17 May 2021
Global Income Insights Table


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 $155,193,689.
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 on economic exposure, see the Other Material Information document on the Offer Register at www.companiesoffice.govt.nz/disclose.
Note: Rounding may affect any subtotals and totals.

Overview

Investment category Income
Risk & volatility Please see the NZ Funds Advised Portfolio Service Product Disclosure Statement or the latest Fund Update for information on risk.
Withdrawal restriction The Portfolio has a 21-day withdrawal notice period.
Further information Further information is contained in the NZ Funds Advised Portfolio Service Product Disclosure Statement.

Core Inflation Portfolio

Review

For the month of April 2021

The Inflation Category had a weak month in April which was due to a decrease in interest rates.

Our thesis of rising global inflation remains firmly intact. This will lead to continued increases in interest rates over coming years. In April we saw a reversal in interest rates. There was nothing fundamental supporting this move and we therefore see this as a healthy pullback in a trade that has been consistently making positive returns over the last six months.

Performance was also impacted by a pullback in the price of Bitcoin which started the month at US$59,000 and finished at US$55,000. While still retaining Bitcoin exposure, we have now moved investors’ cryptocurrency allocations slightly away from Bitcoin and into Ethereum where we see greater near-term upside.

Positive performance did come from the shares allocation which generally performed well in a market that continues to grind higher. Particularly strong returns came from Wells Fargo, the large United States bank which reported very positive results as the economy recovers. In addition, Suez, a large water management utility listed in France, finalised a takeover agreement and the share price increased by 10%.

Similar to the Growth Category, we remain defensively positioned in short interest rates as inflation pressures continue to build.

Details

Strategy objective Strategy summary Risk category Minimum suggested investment timeframe
To mitigate the impact of inflation on your investment over the medium and/or long term. Anticipated to mainly hold New Zealand, Australian and international bonds, and New Zealand and Australian shares. 5 years+

Performance

Performance since inception (31 October 2008) to 30 April 2021
Core Inflation Performance Graph Core Inflation Performance Table

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

  • Returns should be looked at in conjunction with the level of risk associated with an investment. 'Maximum decline' is a measure of risk. It represents the largest decline in value in the previous 12 months or since inception of the Portfolio if it has not existed for 12 months.
  • This is the annualised standard deviation calculated from weekly returns of the Portfolio over the 5 years ending 31 March 2021. For more details on the Portfolio’s Maximum Decline and Volatility please contact NZ Funds.

Note: Rounding may affect some numbers.

Portfolios

Core Inflation Portfolio

Complete Portfolio as at 17 May 2021
Core Inflation Portfolio Table


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. As at the date of the security listings, the majority of the assets of the Strategy were held in this asset class. This Strategy may also hold assets in other asset classes.
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 on economic exposure, see the Other Material Information document on the Offer Register at www.companiesoffice.govt.nz/disclose.
Note: Rounding may affect any subtotals and totals.

Overview

Investment category Inflation
Risk & volatility Please see the NZ Funds Advised Portfolio Service Product Disclosure Statement or the latest Fund Update for information on risk.
Withdrawal restriction The Portfolio has a 21-day withdrawal notice period.
Further information Further information is contained in the NZ Funds Advised Portfolio Service Product Disclosure Statement.

Property Inflation Portfolio

Review

For the month of April 2021

The Inflation Category had a weak month in April which was due to a decrease in interest rates.

Our thesis of rising global inflation remains firmly intact. This will lead to continued increases in interest rates over coming years. In April we saw a reversal in interest rates. There was nothing fundamental supporting this move and we therefore see this as a healthy pullback in a trade that has been consistently making positive returns over the last six months.

Performance was also impacted by a pullback in the price of Bitcoin which started the month at US$59,000 and finished at US$55,000. While still retaining Bitcoin exposure, we have now moved investors’ cryptocurrency allocations slightly away from Bitcoin and into Ethereum where we see greater near-term upside.

Positive performance did come from the shares allocation which generally performed well in a market that continues to grind higher. Particularly strong returns came from Wells Fargo, the large United States bank which reported very positive results as the economy recovers. In addition, Suez, a large water management utility listed in France, finalised a takeover agreement and the share price increased by 10%.

Similar to the Growth Category, we remain defensively positioned in short interest rates as inflation pressures continue to build.

Details

Strategy objective Strategy summary Risk category Minimum suggested investment timeframe
To mitigate the impact of inflation on your investment over the medium and/or long term. Anticipated to mainly hold New Zealand, Australian and international bonds, and property and infrastructure shares. 5 years+

Performance

Performance since inception (31 October 2008) to 30 April 2021
Property Inflation Performance Graph Property Inflation Performance Table

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.li>
  • Cumulative returns.

Maximum Decline and Volatility

  • Returns should be looked at in conjunction with the level of risk associated with an investment. 'Maximum decline' is a measure of risk. It represents the largest decline in value in the previous 12 months or since inception of the Portfolio if it has not existed for 12 months.
  • This is the annualised standard deviation calculated from weekly returns of the Portfolio over the 5 years ending 31 March 2021. For more details on the Portfolio’s Maximum Decline and Volatility please contact NZ Funds.

Note: Rounding may affect some numbers.

Portfolios

Property Inflation Portfolio

Complete Portfolio as at 17 May 2021
Property Inflation Portfolio Table


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. As at the date of the security listings, the majority of the assets of the Strategy were held in this asset class. This Strategy may also hold assets in other asset classes.
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 on economic exposure, see the Other Material Information document on the Offer Register at www.companiesoffice.govt.nz/disclose.
Note: Rounding may affect any subtotals and totals.

Overview

Investment category Inflation
Risk & volatility Please see the NZ Funds Advised Portfolio Service Product Disclosure Statement or the latest Fund Update for information on risk.
Withdrawal restriction The Portfolio has a 21-day withdrawal notice period.
Further information Further information is contained in the NZ Funds Advised Portfolio Service Product Disclosure Statement.

Equity Inflation Portfolio

Review

For the month of April 2021

The Inflation Category had a weak month in April which was due to a decrease in interest rates.

Our thesis of rising global inflation remains firmly intact. This will lead to continued increases in interest rates over coming years. In April we saw a reversal in interest rates. There was nothing fundamental supporting this move and we therefore see this as a healthy pullback in a trade that has been consistently making positive returns over the last six months.

Performance was also impacted by a pullback in the price of Bitcoin which started the month at US$59,000 and finished at US$55,000. While still retaining Bitcoin exposure, we have now moved investors’ cryptocurrency allocations slightly away from Bitcoin and into Ethereum where we see greater near-term upside.

Positive performance did come from the shares allocation which generally performed well in a market that continues to grind higher. Particularly strong returns came from Wells Fargo, the large United States bank which reported very positive results as the economy recovers. In addition, Suez, a large water management utility listed in France, finalised a takeover agreement and the share price increased by 10%.

Similar to the Growth Category, we remain defensively positioned in short interest rates as inflation pressures continue to build.

Details

Strategy objective Strategy summary Risk category Minimum suggested investment timeframe
To mitigate the impact of inflation on your investment over the medium and/or long term. Anticipated to mainly hold New Zealand, Australian and international bonds, and international shares. 5 years+

Performance

Performance since inception (31 October 2008) to 30 April 2021
Equity Inflation Performance Graph Equity Inflation Performance Table

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

  • Returns should be looked at in conjunction with the level of risk associated with an investment. 'Maximum decline' is a measure of risk. It represents the largest decline in value in the previous 12 months or since inception of the Portfolio if it has not existed for 12 months.
  • This is the annualised standard deviation calculated from weekly returns of the Portfolio over the 5 years ending 31 March 2021. For more details on the Portfolio’s Maximum Decline and Volatility please contact NZ Funds.

Note: Rounding may affect some numbers.

Portfolios

Equity Inflation Portfolio

Complete Portfolio as at 17 May 2021
Equity Inflation Portfolio Table


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. Swaptions notional value is currently $58,451,068.
4. As at the date of the security listings, the majority of the assets of the Strategy were held in this asset class. This Strategy may also hold assets in other asset classes.
5. 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 on economic exposure, see the Other Material Information document on the Offer Register at www.companiesoffice.govt.nz/disclose.
Note: Rounding may affect any subtotals and totals.

Overview

Investment category Inflation
Risk & volatility Please see the NZ Funds Advised Portfolio Service Product Disclosure Statement or the latest Fund Update for information on risk.
Withdrawal restriction The Portfolio has a 21-day withdrawal notice period.
Further information Further information is contained in the NZ Funds Advised Portfolio Service Product Disclosure Statement.

Core Growth Portfolio

Review

For the month of April 2021

The Growth Category participated in the continued strong share market rally following a strong corporate earnings season in April. However, the Category underperformed over the month as the sharp sell-off in United States government bonds came to a halt as interest rates decreased, helped by comments from the Federal Reserve (the ‘Fed’).

The United States 10-year Treasury yield declined by 11 basis points to 1.63% for the month. The Fed acknowledged improvements in the economy and a better outlook, but clearly downplayed any prospect of removing policy support. The Category remains positioned to benefit from higher interest rates as the threat of inflation increases as the economy recovers. Our views on inflation mean performance of the Category will sometimes differ from the performance of our underlying share markets.

We remain confident that interest rates will grind higher throughout the rest of 2021. The United States economy grew at an annualised 6.4% in Q1, beating expectations. At the same time, commodity prices continue to increase further pressuring inflation expectations. China’s surging imports of metals, grain and other commodities are providing a boost to commodity prices as well as transportation costs. The Baltic Dry Index, which tracks the cost of moving commodities by sea, pushed to a 10-year high in April.

Details

Strategy objective Strategy summary Risk category Minimum suggested investment timeframe
To grow your investment over the long term. Anticipated to mainly hold hedge funds and/or international shares. 10 years+

Performance

Performance since inception (31 October 2008) to 30 April 2021
Core Growth Performance Graph Core Growth Performance Table

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

  • Returns should be looked at in conjunction with the level of risk associated with an investment. 'Maximum decline' is a measure of risk. It represents the largest decline in value in the previous 12 months or since inception of the Portfolio if it has not existed for 12 months.
  • This is the annualised standard deviation calculated from weekly returns of the Portfolio over the 5 years ending 31 March 2021. For more details on the Portfolio’s Maximum Decline and Volatility please contact NZ Funds.

Note: Rounding may affect some numbers.

Portfolios

Core Growth Portfolio

Complete Portfolio as at 17 May 2021
Core Growth Portfolio Table


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 on economic exposure, see the Other Material Information document on the Offer Register at www.companiesoffice.govt.nz/disclose.
Note: Rounding may affect any subtotals and totals.

Overview

Investment category Growth
Risk & volatility Please see the NZ Funds Advised Portfolio Service Product Disclosure Statement or the latest Fund Update for information on risk.
Withdrawal restriction The Portfolio has a 21-day withdrawal notice period.
Further information Further information is contained in the NZ Funds Advised Portfolio Service Product Disclosure Statement.

Global Equity Growth Portfolio

Review

For the month of April 2021

The Growth Category participated in the continued strong share market rally following a strong corporate earnings season in April. However, the Category underperformed over the month as the sharp sell-off in United States government bonds came to a halt as interest rates decreased, helped by comments from the Federal Reserve (the ‘Fed’).

The United States 10-year Treasury yield declined by 11 basis points to 1.63% for the month. The Fed acknowledged improvements in the economy and a better outlook, but clearly downplayed any prospect of removing policy support. The Category remains positioned to benefit from higher interest rates as the threat of inflation increases as the economy recovers. Our views on inflation mean performance of the Category will sometimes differ from the performance of our underlying share markets.

We remain confident that interest rates will grind higher throughout the rest of 2021. The United States economy grew at an annualised 6.4% in Q1, beating expectations. At the same time, commodity prices continue to increase further pressuring inflation expectations. China’s surging imports of metals, grain and other commodities are providing a boost to commodity prices as well as transportation costs. The Baltic Dry Index, which tracks the cost of moving commodities by sea, pushed to a 10-year high in April.

Details

Strategy objective Strategy summary Risk category Minimum suggested investment timeframe
To grow your investment over the long term. Anticipated to mainly hold international shares. 10 years+

Performance

Performance since inception (31 October 2008) to 30 April 2021
Global Equity Growth Performance Graph Global Equity Growth Performance Table

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 Volatility

  • Returns should be looked at in conjunction with the level of risk associated with an investment. 'Maximum decline' is a measure of risk. It represents the largest decline in value in the previous 12 months or since inception of the Portfolio if it has not existed for 12 months.
  • This is the annualised standard deviation calculated from weekly returns of the Portfolio over the 5 years ending 31 March 2021. For more details on the Portfolio’s Maximum Decline and Volatility please contact NZ Funds.

Note: Rounding may affect some numbers.

Portfolios

Global Equity Growth Portfolio

Complete Portfolio as at 17 May 2021
Global Equity Growth Portfolio Table


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 on economic exposure, see the Other Material Information document on the Offer Register at www.companiesoffice.govt.nz/disclose.
Note: Rounding may affect any subtotals and totals.

Overview

Investment category Growth
Risk & volatility Please see the NZ Funds Advised Portfolio Service Product Disclosure Statement or the latest Fund Update for information on risk.
Withdrawal restriction The Portfolio has a 21-day withdrawal notice period.
Further information Further information is contained in the NZ Funds Advised Portfolio Service Product Disclosure Statement.

Dividend and Growth Portfolio

Review

For the month of April 2021

The Growth Category participated in the continued strong share market rally following a strong corporate earnings season in April. However, the Category underperformed over the month as the sharp sell-off in United States government bonds came to a halt as interest rates decreased, helped by comments from the Federal Reserve (the ‘Fed’).

The United States 10-year Treasury yield declined by 11 basis points to 1.63% for the month. The Fed acknowledged improvements in the economy and a better outlook, but clearly downplayed any prospect of removing policy support. The Category remains positioned to benefit from higher interest rates as the threat of inflation increases as the economy recovers. Our views on inflation mean performance of the Category will sometimes differ from the performance of our underlying share markets.

We remain confident that interest rates will grind higher throughout the rest of 2021. The United States economy grew at an annualised 6.4% in Q1, beating expectations. At the same time, commodity prices continue to increase further pressuring inflation expectations. China’s surging imports of metals, grain and other commodities are providing a boost to commodity prices as well as transportation costs. The Baltic Dry Index, which tracks the cost of moving commodities by sea, pushed to a 10-year high in April.

Details

Strategy objective Strategy summary Risk category Minimum suggested investment timeframe
To grow your investment over the long term. Anticipated to mainly hold New Zealand and Australian shares. 10 years+

Performance

Performance since inception (31 October 2008) to 30 April 2021
Dividend And Growth Performance Graph Dividend And Growth Performance Table

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

  • Returns should be looked at in conjunction with the level of risk associated with an investment. 'Maximum decline' is a measure of risk. It represents the largest decline in value in the previous 12 months or since inception of the Portfolio if it has not existed for 12 months.
  • This is the annualised standard deviation calculated from weekly returns of the Portfolio over the 5 years ending 31 March 2021. For more details on the Portfolio’s Maximum Decline and Volatility please contact NZ Funds.

Note: Rounding may affect some numbers.

Portfolios

Dividend and Growth Portfolio

Complete Portfolio as at 17 May 2021
Dividend And Growth Portfolio Table


1. 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.
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 on economic exposure, see the Other Material Information document on the Offer Register at www.companiesoffice.govt.nz/disclose.
Note: Rounding may affect any subtotals and totals.

Overview

Investment category Growth
Risk & volatility Please see the NZ Funds Advised Portfolio Service Product Disclosure Statement or the latest Fund Update for information on risk.
Withdrawal restriction The Portfolio has a 21-day withdrawal notice period.
Further information Further information is contained in the NZ Funds Advised Portfolio Service Product Disclosure Statement.