New Zealand Property & Retirement Villages

A diversified way to access New Zealand property

The Portfolio offers investors a unique combination of shares in the major New Zealand-listed property companies as well as leading retirement village operators. The listed property companies own a wide variety of property types including commercial, industrial, retail and healthcare. In contrast, the retirement village operators are exposed to large portfolios of residential property and derive their profits from the long-term appreciation of New Zealand residential property.

A solid hedge against inflatioin

Property has traditionally been viewed as a solid hedge against inflation. Rental contracts typically include provisions for periodic increases in line with, or ahead of, inflation. These adjustments ensure that as investors’ cost of living rises, so too does the rental income generated from high quality property assets. Over longer periods of time the replacement cost of land and buildings also rises with inflation and is reflected in the asset value of listed property companies, enabling investors to also enjoy long-term capital gains.

Quality, transparency & liquidity

Listed property companies tend to own assets of substantial size and quality that are not ordinarily affordable for private investors such as shopping malls, office towers and hospitals. Because these properties are expensive to build there are few of them, which means there is increased demand from tenants. As a result, high quality assets suffer fewer vacancies. They are also commonly rented by large companies who are in a strong position to pay their rent.

The Portfolio is 100% transparent, so investors can see each of the property companies the Portfolio owns. By using a portfolio structure, clients can deposit or withdraw large or small amounts whenever they wish, without worrying about private or listed property liquidity, or worrying about 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 and in the NZ Funds Active Series Product Disclosure Statement (PDS).