Overview and Investment Objective
Date: Thur, 17 January 2019 | Price: 2.4002
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 objective of the Clarity Trans-Tasman Fund (Fund) is to achieve at least market returns over the medium to long term (for at least a period of five years). It will invest in a well-diversified portfolio of primarily New Zealand and Australian listed equities, with a value bias (selected to favour those shares with higher earnings and dividend yields and strong net tangible asset backing). The focus is on a total return approach; however, the portfolio will also seek to generate an above average stream of dividend income compared to its benchmark. It will also hold cash for liquidity purposes and may invest in other assets on listed sharemarkets.
The Fund is actively managed, which means the holdings may differ considerably from the relevant benchmark index. We use a 50:50 benchmark index to measure relative performance. That is 50% of the NZX50 Portfolio Index and 50% of the ASX200 Accumulation Index in New Zealand dollars. We compare actual performance (net of fees and expenses) with index performance to gauge value added by our share selections. The 50:50 weighting of the two indices reflects the target asset allocation.
This Fund may be suitable for investors who want a diversified investment with exposure across Australasian equities, who are comfortable with a higher risk in the short-term for improved longer-term returns.
The Fund will typically hold shares in 25-35 well-researched New Zealand and Australian companies. Although the intention is for the Fund to be fully invested in Australasian shares, the Fund may invest in cash or equivalent investments, depending on market conditions and the application and redemption of Units.
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.
Cash and cash equivalents
|5||0 - 40|
New Zealand Equities
Any company listed on the NZX Stock Exchange
|47.5||20 - 70|
Any company listed on the Australian Stock Exchange
|47.5||20 - 70|
Any company listed on any other recognised Stock Exchange
|0||0 - 5|
Any property company listed on the NZX Stock Exchange or Australian Stock Exchange
|0||0 - 10|
Via exchange traded fund(s) (ETF)
An ETF is a marketable security that tracks published market indices
|0||0 - 10|
The Fund can invest in any of the asset classes and security types listed above either directly or via investment in other funds.
When we invest in international assets denominated in foreign currencies, we may 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 1 November 2007. 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
As the market cycle matures in New Zealand and Australia, we believe that a time is near when valuations will again matter, “growth” stocks will face increased scrutiny and “value” stocks will return to favour.
Quarterly Fund Update
This update provides you with information about the Fund including its performance and investment mix.