New Zealand Utilities

A portfolio of primarily New Zealand-listed electricity producers

The Portfolio offers investors the opportunity to invest in the companies which operate the everyday essential public services of generating and distributing electricity throughout New Zealand. The Portfolio holds concentrated positions in three state or former state-owned electricity producers (Contact Energy, Meridian Energy and Mercury NZ) as well as community trust-controlled Vector. Together, these companies generate and distribute the bulk of New Zealand’s retail, industrial and commercial electricity. The Portfolio also holds substantial positions in Chorus and Telstra. These formerly government-owned companies own large fibre-optic  cable networks throughout New Zealand and Australia respectively.

A solid hedge against inflation

New Zealand utility companies’ revenues and profits are closely linked to inflation through New Zealand’s regulatory framework. 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, including those in New Zealand, 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 of generation assets throughout the country. 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 which electricity generation or lines projects the company owns and operates. 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).

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).