Wealth Builder Inflation Strategy

Diversified portfolio of property, utility & infrastructure assets

The Strategy offers clients the opportunity to invest in a wide range of New Zealand, Australian and global property, utility and infrastructure assets. Utility and infrastructure assets are assets which are essential for an economy. They include electricity and water as well as infrastructure like roads, airports, seaports and waste management services and electronic infrastructure like data centres and financial exchanges.

Property, utility and Infrastructure assets offer investors several benefits. They generally offer stable long-term returns. They enjoy relatively constant demand, regardless of the economic cycle, as the assets are needed every day for society to function. This makes them more resilient than many other types of investments in an economic downturn. Infrastructure and utility assets also tend to hold monopoly positions and are less impacted by changes in science or technology.

A solid hedge against inflation

Most property, utility and infrastructure investments have revenues that are contractually linked to inflation, such as building rent, tolls on toll-roads, waste management services or aircraft or seaport landing or docking fees. This can help maintain investors’ purchasing power over time. As these assets generally have a long lifespan there is potential for significant capital appreciation of the asset as demand for it grows and the replacement cost of construction rises. Many utility and infrastructure projects also receive support from governments through incentives, subsidies, or favourable regulatory frameworks, which can reduce risk and enhance returns for investors.

Quality, transparency & liquidity.

A diversified portfolio of listed company shares enables investors to own a small fraction of a wide range of very large assets which could not be accessed privately, and to buy and sell units in those assets at transparent market prices. 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 Strategy owns and which property, utility or infrastructure assets Wealth Builder benefits from.

Since inception (27 February 2020) to 30 September 2026. Returns are stated after full Strategy 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 Strategy 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 Strategy performance. In the graph above, quarter ends are full standard calendar year quarters except the first quarter from inception (27 February 2020) and the current quarter ended 31 August 2026, which is not a full quarter.

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

The market index for the Strategy is made up of the S&P/NZX Bank Bills 90 Day Index Total Return (10%), S&P/NZX All Utilities Sector Gross (15% ), S&P/NZX All Industrials Sector Gross (15% ), S&P/NZX Real Estate Select Index Gross (15% ), S&P World Sustainability Enhanced Utilities Net Total Return Index USD (15%), STOXX Global Broad Infrastructure Net Return Index USD (15% ), and the FTSE EPRA NAREIT Developed Net Total Return Index Hedged in NZD (15% ). You cannot invest in these indices and these indices do not take Environmental, Social and Governance (ESG) factors into account.

NZ Funds takes ESG criteria into account in its investment decisions. This impacts on our investment choices. Our ESG criteria are set out in NZ Funds Wealth Builder SIPO. NZ Funds is an active manager so the securities listed above0 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.

New Zealand Funds Management Limited is the issuer of the NZ Funds Wealth Builder Inflation Strategy. Further information is contained in the Strategy Profiles and in the NZ Funds Wealth Builder Product Disclosure Statement.