Global Utilities

A diversified portfolio of global utility companies

The Portfolio owns a diversified portfolio of global utility companies. Utility companies are companies that provide essential public services such as the generation and distribution of electricity, natural gas retailing or water and sewage services.

Utilities are often defensive investments because they tend to perform well in an economic downturn as people still need basic services like electricity, water and gas. Utilities are also known for paying consistent and often attractive dividends out of the strong free cash flow they can produce.

With increasing global focus on renewable energy, infrastructure upgrades and smart grids, utility companies have opportunities for growth through modernization and expansion into green energy. This shift can create long-term growth potential for utility investors.

A solid hedge against inflation

Utility companies’ revenues and profits are closely linked to inflation through regulatory frameworks. This can help maintain investors’ purchasing power over time. As utility assets generally have very long lifespans, there is potential for significant capital appreciation of the asset as demand grows and the replacement cost of construction rises. Many utility companies also receive support from governments through direct ownership, incentives, subsidies, or favourable regulatory frameworks, which can reduce risk and enhance returns for investors.

Quality, transparency & liquidity

A portfolio of utility company shares enables investors to own a small fraction of a large company which in turn may own a large portfolio assets. Listed company status also ensures that corporate governance, financial position and management decisions are transparent and publicly accountable. Investors can see each of the companies the Portfolio owns and where the utilities they own are located. By using a portfolio structure, clients can deposit or withdraw large or small amounts whenever they wish, without worrying about liquidity or portfolio rebalancing.

Since inception (17 March 2023) to 30 September 2026. Returns are stated after full Portfolio fees and expenses including performance fees (where applicable), but before any advisory fees or investor tax. No management fee rebates have been applied to these numbers, see PDS for management fee rebate criteria. Past performance is not necessarily an indication of future returns. Maximum decline represents the largest decline in value in the previous 12 months. Volatility 5 Years is the annualised standard deviation calculated from weekly returns of the Portfolio and market index data over the 5 years ending 30 September 2026. 

The graph displays the change in value of a notional investment of $100 after full fees and tax (assuming a tax rate of 28%) but before any advisory fees (if applicable). No management fee rebates have been applied in the graphs of individual Portfolio performance. In the graph above, month-end returns are shown from inception date (17 March 2023).

†  Share market volatility adjusted weight as per NZ Funds’ risk management model. 

NZ Funds takes Environmental, Social and Governance (ESG) criteria into account in its investment decisions. This impacts on our investment choices. Our ESG criteria are set out in the NZ Funds Active Series SIPO. 

NZ Funds is an active manager so the securities listed above may not be held in the future. Past performance is not an indicator of future returns. A full list of securities held by the Strategy is available through NZ Funds Digital Wallet. Rounding may affect totals.

Further information is contained in the Portfolio Profiles in the NZ Funds Active Series Product Disclosure Statement (PDS).