Overview and Investment Objective
Date: Mon, 17 September 2018 | Price: 2.8621
Clarity Funds Management Limited was established in 2007 and now offers six investment funds. The investment management expertise of JMI Wealth is used to manage funds offered to our clients through Clarity.
Clarity has the ability to appoint external investment managers or advisers.
The investment objective of the Clarity Diversified Growth Fund (Fund) is to achieve returns over the medium to long term (at least a period of five years) by investing in a range of growth orientated securities. The Fund invests in managed funds (including the Clarity Trans-Tasman and Clarity Global Shares Funds) and directly held shares across global markets. It may also invest in other assets on listed sharemarkets.
The Fund is actively managed and strives to generate medium term growth. We use a composite index to measure relative performance (net of fees and expenses). That is 25% of the NZX50 Portfolio Index, 25% of the ASX200 Accumulation Index in NZ dollars and 50% MSCI All Country World ex-Tobacco Index (net dividends reinvested), measured in NZ dollars, 50% hedged to NZ dollars. The focus is to generate a return that exceeds the benchmark index. The holdings may differ considerably from the relevant benchmark index.
This Fund may be suitable for those investors who are comfortable with a higher risk in the short-term but want a diversified exposure to shares.
The target asset allocation ranges shown below are the expected average asset mix of the Fund over the long term. Clarity will manage the Fund within the given following ranges.
Cash and cash equivalents
Including short-term securities and deposits
|6||0 - 25|
Any company listed on the NZX Stock Exchange or Australian Stock Exchange
|47||0 - 70|
Any company listed on any other recognised Stock Exchange
|47||0 - 70|
Any property company listed on the NZX Stock Exchange or Australian Stock Exchange
|0||0 - 10|
Via exchange traded fund(s) (ETF) and currency hedging
An ETF is a marketable security that tracks published market indices
|0||0 - 10|
When we invest in international assets denominated in foreign currencies, we generally enter into foreign exchange contracts to reduce or increase the Fund’s exposure to the New Zealand dollar.
We do not make any cash distributions from the Fund.
Clarity Funds Management Limited is the issuer and manager of the Fund. We work together with The New Zealand Guardian Trust Company Limited, our Supervisor, to act in the best interest of investors.
Fund application money and investments are held by the Supervisor or their appointed custodian. The Fund has an independent registrar and an administrator who sets the daily price. The Fund is audited annually.
The Fund is governed by the Trust Deed dated 5 September 2016 and the Establishment Deed dated 15 March 2017. The Fund is established within a registered managed investment scheme under the Financial Markets Conduct Act 2013 (FMC Act), scheme number SCH10600 (Scheme). The operation of the Scheme is governed by the FMC Act.
You can download a copy of the Product Disclosure Statement and Fund Update below for more detailed information about the Fund and for the Fund’s application form.
You can review a copy of the Trust Deed, Product Disclosure Statement and other important Scheme documents at any time by either contacting us or electronically on the Scheme's register on www.business.govt.nz/disclose.
Quarterly Fund Commentary
While volatility increased sharply in the first quarter this year, the second quarter has resumed steady capital growth and we do not belive that the bull market in equities has quite come to an end.
Quarterly Fund Update
This update provides you with information about the Fund including its performance and investment mix.