Diversified Income Fund

Overview and Investment Objective

Date:  Thur 16, November, 2017   |   Price:   2.5445

In 2007, JMIS Limited established a 100% owned funds management subsidiary which is now called Clarity Funds Management Limited and offers six investment funds.  The investment management expertise of the JMIS team is also used to manage funds offered to our clients through Clarity.
Clarity has the ability to appoint external investment managers or advisers.

The objective of the Clarity Diversified Income Fund is to achieve returns over the medium-term (at least a period of five years) by investing in a portfolio of well-diversified growth oriented securities with an income bias (selected on a basis to favour those securities with higher earnings and dividend and/or interest payments).  The Fund will provide investors with a regular income stream.  The investment objective is achieved by investing in managed funds (including the Clarity Dividend Yield Fund and the Clarity Fixed Income Fund), directly held shares, cash and fixed interest securities primarily in Australasia. It may also invest in other assets on other listed sharemarkets. 

The Fund is actively managed, which means the holdings may differ considerably from the relevant benchmark index. We use S&P/NZX 90 Day Bank Bills Index plus 1.5% to measure relative performance (net of fees and expenses).  The focus is to generate a return that exceeds the benchmark index. 

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 following given ranges.

Asset Sector Target
Asset
Allocation %
Range %

Cash and cash equivalents

   including short-term securities and deposits

15 0 - 35

New Zealand Fixed Interest

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

57 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

18 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

10 0 - 20

Other Assets

   Via exchange traded fund(s) (ETF) and currency hedging

   An ETF is a marketable security that tracks published market indices

0 0 - 20
  100  

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 intend to make distributions from the Clarity Diversified Income Fund broadly in line with the income generated by the investment portfolio. The distributions will be paid quarterly. Investors will have the option to reinvest their distributions into additional units.

Clarity Funds Management Limited is the issuer and manager of the Clarity Diversified Income Fund.  We work together with Public Trust, our Supervisor, to act in the best interest of investors.

Clarity Diversified Income 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 Clarity Diversified Income 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 Clarity Diversified Income Fund and for the Fund application.

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 | Product Disclosure Statement |   Other Material Information  |   Application Form  |  

 

Quarterly Fund Update

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

Quarterly Fund Update