New Perspective Fund

Overview and Investment Objective

Date:  Mon 18 November, 2019   |   Price:   2.4956

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 achieve long-term growth of capital (five years or longer) by investing in shares of companies located around the world.

Strategy: We use Capital Group as the investment manager for this Fund. Capital Group conducts in-depth proprietary company research and favours companies expected to benefit from structural trends in the global economy.

Benchmark: MSCI All Country World Index (net dividends reinvested) in New Zealand dollars, 50% hedged to the New Zealand dollar.

About Capital Group: Capital Group is one of the largest and most experienced investment management firms in the world.  Since 1931 Capital Group has been focused on delivering superior, consistent results for long-term investors using highconviction portfolios, rigorous research and individual accountability. We have engaged Capital Group through its affiliate Capital International Management Sarl, which is the management company responsible for the operation of the Capital Group New Perspective Fund (LUX)*.

*Capital Group and Capital Group New Perspective are trademarks of The Capital Group Companies, Inc.

Holdings: The Fund provides access to an actively managed portfolio of international listed equities, including emerging markets, through its investment in the Capital Group New Perspective Fund (LUX), a Luxembourg based open-ended collective investment scheme (SICAV), and cash. The Capital Group New Perspective Fund (LUX) will invest in a portfolio of welldiversified global securities listed on sharemarkets around the world. As the investment is actively managed, the holdings may differ considerably from the relevant benchmark index. Initially the Fund will invest in the Capital Group New Perspective Fund (LUX) until such time as scale permits a direct investment.

Suitability: This Fund may be suitable for those investors who are comfortable with a higher risk in the short-term for improved longer-term returns (five years or longer).

The target asset allocation ranges shown below are the expected average asset mix of the Fund over the long term. The Fund will be managed within the given ranges.

 

Asset Sector Target
Asset
Allocation %
Range %

Cash and cash equivalents

   Including short-term securities and deposits and currency hedging

2 0 - 5

New Zealand Equities

   Any company listed on the NZX Stock Exchange

0 0 - 10

Australian Equities

   Any company listed on the Australian Stock Exchange

0 0 - 10

International Equities

   Any company listed on any other recognised Stock Exchange

98 80 -100

Listed Property

   Any property company listed on the NZX or Australian Stock Exchange

0 0 - 10

International Fixed Interest

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

0 0 - 15

Other Assets

   Via exchange traded fund(s) (ETF)

   An ETF is a marketable security that tracks published market indices

0 0 - 5
  100  

Where the Fund invests in an external fund the amount invested in the external fund will be allocated to the principal asset sector in which the external fund invests for the purposes of calculating the asset allocation proportions above.

The Fund is typically fully invested in equity securities, via investment in Capital Group New Perspective Fund (LUX). We may also participate in underwriting and sub-underwriting contracts for issues of permitted equity securities.

Hedging: The foreign currency dollar 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 the SIPO for further information.

Distribution: 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 12 August 2019 and the Establishment Deed dated 20 September 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.

Product Disclosure Statement  |   Other Material Information  Application Form  |  Annual Report | Additional Funds Form | Redemption Form | Statement of Investment Policy and Objectives