New Zealand Equity Fund

Overview and Investment Objective

Date:  Mon 18 November, 2019   |   Price:   2.4941

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 New Zealand 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 will invest in a diversified portfolio of primarily New Zealand equities.

Benchmark: S&P/NZX 50 Index Gross with Imputation.

Holdings: The Fund will typically hold shares in 25-35 companies. Although the intention is to primarily invest in New Zealand equities, the Fund may invest in cash or equivalent investments and Australian equities, 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 New Zealand 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 - 20

New Zealand Equities

   Any company listed on the NZX Stock Exchange

95 60 - 100

Australian Equities

   Any company listed on the Australian Stock Exchange

0 0 - 20

International Equities

   Any company listed on any other recognised Stock Exchange

0 0 - 5

Listed Property

   Any property company listed on the NZX or Australian Stock Exchange

0 0 - 20

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: We do not intend to hedge the foreign exchange exposure, if any. Please refer to Currency Management Policy section in the SIPO for further information.

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 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