Diversified Income Fund

Overview and Investment Objective

Date:  Tue 10 December, 2019   |   Price:   2.685

Clarity Funds Management Limited was established in 2007 and now offers eight 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.

Objective: The Fund aims to provide income in excess of the benchmark over the medium term (four years or longer) by investing in fixed income securities and dividend paying New Zealand and Australian equities. We intend for the Fund to make quarterly income distributions.

Strategy: The Fund will primarily invest in managed funds (including the Dividend Yield Fund and the Fixed Income Fund) to achieve a well-diversified portfolio of New Zealand fixed interest securities and New Zealand and Australian equities.

Benchmark: S&P/NZX Bank Bills 90-Day Index + 1.5% per annum.

Holdings: The Fund is actively managed, which means the holdings may differ considerably from the relevant benchmark index.

Suitability: This Fund may be suitable for those investors who are willing to accept a higher risk than bonds and cash deposits and who desire income from their investment.

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 ranges.
 

Asset Sector Target
Asset
Allocation %
Range %

Cash and cash equivalents

   including short-term securities and deposits and currency hedging

10 0 - 45

New Zealand Fixed Interest

   including NZ Government, local authority, corporate and non-government securities

65 0 - 90

International Fixed Interest

  International bonds including government, local authority, corporate and non-government securities rated investment grade

0 0 - 20

Australasian Equities

   Any company listed on the NZX Stock Exchange  or Australian Stock Exchange

20 0 - 50

International Equities

   Any company listed on any other recognised Stock Exchange

0 0 - 20

Listed Property

   Any property company listed on the NZX Stock Exchange or Australian Stock Exchange

5 0 - 20

Other Assets

   Via exchange traded fund(s) (ETF)

   An ETF is a marketable security that tracks published market indices

0 0 - 20
  100  

The Fund can invest in any of the asset classes and security types listed above either directly or via investment in other managed funds. We may also participate in underwriting and sub-underwriting contracts for issues of permitted equity and fixed interest securities.

Hedging: The foreign currency exposure arising from overseas equities will be partially hedged to the New Zealand dollar to reduce the impact of currency fluctuations. Please refer to the Currency Management section of this SIPO for further details.

Distribution: We intend to make quarterly distributions from the Fund broadly in line with the income generated by the investment portfolio. All distribution amounts are at our discretion. Investors will have the option to reinvest their distributions into additional units or to have these direct credited into their nominated bank account.

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 12 August 2019 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 Update | Monthly Fund Commentary | Product Disclosure Statement |   Other Material Information  |   Application Form  |  Annual Report | Additional Funds Form | Redemption Form
Statement of Investment Policy and Objectives

Monthly Fund Commentary

This commentary provides you with information about the Fund.

Fund Commentary

Quarterly Fund Update

This update provides you with information about the Fund including its performance and investment mix.

Quarterly Fund Update