Dividend Yield Fund

Overview and Investment Objective

Date:  Mon 18 November, 2019 |   Price:   1.5474

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 will provide actively managed exposure to dividend paying New Zealand and Australian equities. The Fund aims to generate higher dividend income than the benchmark over the medium to long term (five years or longer). We intend for the Fund to make quarterly income distributions.

Strategy: The Fund will generate income from a diversified portfolio of companies that we consider provide an attractive and sustainable dividend yield.

Benchmark: 75% S&P/NZX 50 High Dividend Index Gross with Imputation and 25% S&P/ASX 200 Accumulation Index.

Holdings: The Fund will typically hold 30-60 securities. Although the intention is to fully invest in New Zealand and Australian shares, the Fund may invest in shares in other international sharemarkets, New Zealand and Australian cash or other fixed interest securities, depending on market conditions and the application and redemption of units.

Suitability: The Fund may be suitable for investors seeking the regular distribution of income from their diversified investment with exposure across Australasian equities, who are comfortable with medium to high risk in the short-term.

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

5 0 - 30

New Zealand Equities

   Any company listed on the NZX Stock Exchange

60 0 - 80

Australian Equities

   Any company listed on the Australian Stock Exchange

10 0 - 50

International Equities

   Any company listed on any other recognised Stock Exchange

0 0 - 5

Listed Property

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

20 0 - 40

New Zealand Fixed Interest

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

5 0 - 10

International Fixed Interest

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

0 0 - 10

Other Assets

   Via exchange traded fund(s) (ETF)

   An ETF is a marketable security that tracks published market indices

0 0 - 10
  100  

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

Hedging: The Australian dollar exposure arising from Australian equities will generally be fully hedged to the New Zealand dollar to mitigate the impact of currency fluctuations. Please refer to the Currency Management Policy section in the 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 29 October 2013. 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