Trans-Tasman Value Fund

Overview and Investment Objective

Date:  Mon 18 November, 2019  |   Price:  2.6835

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 Clarity Trans-Tasman Value Fund (Fund) - previously Clarity Trans-Tasman Fund, will provide actively managed exposure to New Zealand and Australian equities. The Fund aims to generate a better return 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 employs a value investing strategy, typically favouring companies which offer higher earnings yields.

Benchmark: 50% S&P/NZX 50 Portfolio Index Gross with Imputation and 50% S&P/ASX 200 Accumulation Index in NZ dollars.

Holdings: The Fund will typically hold shares in 25-35 companies. Although the intention is to fully invest in Australasian shares, the Fund may invest in cash or equivalent investments, depending on market conditions and the application and redemption of units. The Fund is actively managed, which means the holdings may differ considerably from the relevant benchmark index.

Suitability: The 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 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

5 0 - 40

New Zealand Equities

   Any company listed on the NZX Stock Exchange

47.5 20 - 70

Australian Equities

   Any company listed on the Australian Stock Exchange

47.5 20 - 70

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

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 securities.

Hedging: Typically we do not intend to hedge the foreign currency exposure; however, there may be circumstances under which we elect to use foreign exchange contracts to reduce the level of exposure to foreign currencies.

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 October 2019. 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