Managed Funds & Unit Trusts


How Spicy Is Your Portfolio?

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india avenue logoIndia Avenue Investment Management

Our friends at The Investment Store, a boutique fund distributor, have recently been appointed to market India Avenue Investment Management funds in New Zealand.

India Avenue is an Australian investment house dedicated to investing in Indian listed companies and is domiciled in Sydney, with a research affiliate based in Mumbai, India. The India Avenue Equity Fund offers to New Zealand (and Australian) investors an opportunity to create wealth through India’s fast growing economy.

The Indian economy has witnessed a paradigm shift over the last decade. With favourable demographics and improving governance, it is currently one of the fastest growing economies in the world and this trend is set to continue over coming decades. This is likely to create significant opportunities for growth by accessing India’s capital markets. For a discussion on the case for Indian equities as part of an investment portfolio, please click through here to a paper entitled "How Spicy is your Portfolio". Or you can read it below.

We think they make some particularly good points on page 2 where they say:

"When it comes to investing for growth, many investors have tried to fit a square peg into a round hole by equating "Emerging markets" (EM) as a proxy for exposure to high growth economies, which in their expectations should result in higher returns. In our view, this naive approach fails for the following reasons:

  1. Research illustrates that high GDP growth doesn’t always equate to high equity returns
  2. EM are an eclectic group of countries grouped together to from an Index (MSCI Emerging Markets). These countries share little in common apart from not being classed as Developed
  3. The term EM embraces countries that are big and small, developed and under-developed, industrialised and agrarian, manufacturing and commodity-based and in deficit and surplus
  4. Over 20% of the countries in the EM Index are growing slower than the US!

Hence, it pays to be selective when identifying growth opportunities for a portfolio. An allocation towards developing economies such as India’s is likely to provide a dual benefit of long term capital growth and diversification to high yielding strategies such as Australian/NZ Equities, REIT’s and Fixed Income, which are plentiful in investor portfolios today."

The India Avenue Equity Fund provides exposure to a actively managed portfolio of Indian listed shares not readily accessible by New Zealand investors. Whilst relatively new, the track record of its founders and key staff appears sound.

If are interested in putting a little Indian spice in your portfolio give us a call on 07 578 3863.


Hunter Hall - Investing Ethically for 20 years

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hunterhallResponsible & ethical investing has been very much in the news over the past few weeks.

The current furore has largely come about due to media investigations into the holdings of a number of Kiwisaver providers, and their exposure to controversial weapons and other (arguably unethical) areas such as tobacco companies. The ensuing debate and reaction demonstrates the fact that many investors expect their fund managers not only to achieve good returns, but to do so in a responsible manner.

As you may be aware, Hunter Hall, from very early in its’ history, has taken an ethical approach to investing. For Hunter Hall, this means avoiding investments in businesses that in its opinion are involved in activities that are harmful to people, animals and the environment. To achieve this, Hunter Hall adopts a negative screening process that seeks to avoid investment in companies that derive operating revenues from direct and material business involvement in…

  • The manufacture or sale of weapons and weapon components
  • Tobacco manufacture
  • Uranium mining and nuclear reactors
  • Gambling outlets and systems
  • Intensive animal farming
  • Animal testing on cosmetics
  • Activities that give right to human rights violations
  • Unremediated destruction of the environment
  • Fossil fuel exploration, production, refining, transportation and storage.

Harbour Australasian Equity Income Fund

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Harbour Asset Management Logo

Equity Income:

A New Approach to Income in a World of Low Interest Rates

Craig Stent, the Portfolio Manager of the Harbour Australasian Equity Income Fund, has prepared the attached paper “Equity Income: A new approach to income in a world of low interest rates”. It makes interesting reading.

This is a timely, relevant and considered paper that we hope you get some benefit from reading.

A Summary Follows:

  • With interest rates globally and locally falling over recent years, and forecast to stay low for some time, investors are finding it more challenging to source adequate income from traditional investments such as term deposits, bonds and cash.
  • A well constructed portfolio of New Zealand and Australian equities can provide investors with an alternative source of income, and the potential to grow the real capital base.
  • Relative to other developed markets, New Zealand has over the long-term paid a high dividend yield. In the 10 year period to 31 December 2011 dividends contributed the majority of the total return. The picture is not too dissimilar for the Australian or US market.
  • Companies in Australia and New Zealand are generally in a good financial position post the Global Financial Crisis (GFC). Many companies potentially have surplus cash on the balance sheet and are either returning capital to shareholders via dividends or undertaking other capital management initiatives.
  • Harbour Asset Management has launched an Australasian Equity Income Fund which follows a quantitative and fundamental investment process in selecting a diversified portfolio of companies across the New Zealand and Australian markets. We believe that used in a balanced portfolio, this approach should provide investors with an attractive level of income with some capital growth relative to traditional income asset classes.

Click here to read the full paper “Equity Income: A new approach to income in a world of low interest rates”


An option for International Equity Investing

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How do you Invest in International Equities?

It is generally regarded as a good idea to have an exposure to international equities in a well diversified portfolio. But individuals simply don't have enough time in the day never mind the expertese and foreign language skills required to analyse even a portion of the vast range of investment options available in the international markets.

ANZInvestmentsHeaderANZ Investments have a solution called the OneAnswer SAC International Share Fund.

The fund has a "multi manager" approach. They select a number of international fund managers with expertese in their chosen field and investment philosophy to build a widely diversified fund. This gives investors exposure to experts from across the world, and because they are able to leverage off the size of the Australian arm they are able to access the managers at a reasonable price.

(SAC is the abbreviatioon ANZ Investments use for those of funds invested in just one sector of the market ie a Single Asset Class.)

Morningstar have recently undertaken a research review of the OneAnswer SAC International Share Fund. They have given the fund the highest possible analyst rating of “Gold”. In addition the fund has the highest possible quantitative rating of 5 stars.

Morningstar have made the following comments in the review:

"OneAnswer International Share is a stand-out choice. The multimanager approach is impressive across the board – stable line up of quality managers, impressive team in charge of manager selection and portfolio construction, category-leading performance history, all at a reasonable cost.’

They’ve done an exceptional job and deserve commendation. Investors should take comfort the fund will continue to deliver."

The fund was also the International Equities category winner at the 2016 Morningstar Awards.

The fund is suitable as a core International Equity exposure for clients in a well-diversified portfolio. If you'd like more information click here to email or contact Jonathan or Andrew on 07 578 3863.

Click here for the May 2016 Morningstar report on the OneAnser SAC International Share Fund or view it below.


First Mortgage Trust

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First Mortgage Trust LogoFirst Mortgage Trust (FMT) was established in early 1996. The primary purpose of the Trust was to establish a vehicle by which investors could deposit money for an interest return greater than one year trading bank term deposit rates, whilst enjoying the security offered by investments in first mortgages. Click here to see application forms & Product Disclosure Statement.

First Mortgage Trust is based in the Bay of Plenty and is located at 15 First Avenue, Tauranga. They have plenty of customer parking available on site. Telephone:  07 578 0754 Freephone:  0800 321 113 Fax:  07 578 3597. If contacting them directly please mention you heard about them here.

First Mortgage Trust is one of the very few New Zealand based mortgage trusts that was successfully managed through the financial crisis that began in 2007. The trustees, and the manager can be justifiably proud of the fact that, apart for a short period during 2008, the trust has remained open to investors to withdraw should they desire and continued to generate good returns. The value of the trusts units has never fallen below a dollar, and no investor in the trust has ever lost any money. To read more about First Mortgage Trust visit their website

Click here to see the competitive Investment Returns earned by investors over the last few years


Mint Asset Management

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Mint Asset Management logoMint Asset Management is a specialist boutique funds manager providing investment vehicles and solutions for retail and institutional investors.

Why Invest with Mint?

  • An investment approach focused on consistently outperforming their benchmark index through a combination of skill and in depth company research
  • A team of experienced fund managers, dedicated to producing the best possible returns for their  investors.
  • Mint operate in an environment of full disclosure, offering complete transparency about what, where and how they invest.
  • An agile company with a flat structure, which enables them to exploit investment opportunities faster than their larger competitors.
  • Highly rated by independent research companies for  investment ability and performance when compared with other NZ fund managers
  • On 1 July 2015 the New Zealand Superannuation Fund appointed Mint Asset Management to a $150 million New Zealand equities mandate.

Mint Asset Management Retail Funds

Mint Asset Management has designed three retail funds, each offering a different investment focus and level of risk.

 Mint Australia New Zealand Active Equity Trust

This fund has a portfolio of actively managed Australian and New Zealand shares which targets consistent capital growth. This is achieved through investing in a range of companies that will benefit at every stage of the economic cycle.
By investing in companies Mint are trying to capture the growth in the underlying economy in which they are investing and by trying to find the best companies they are looking to beat the performance of that underlying economy. Shares are referred to as a growth asset class. Values rise in the long run. However, over shorter time frames share markets rise and fall which creates volatility and requires investors in shares to have a tolerance for these ups and downs and for them to be prepared to take a longer term view of their investments of at least five years

Mint Australia New Zealand Real Estate Investment Trust

A portfolio of actively managed Australian and New Zealand listed property and property-related shares. This fund targets total return from predominantly investing in opportunities with exposure to commercial property and the relatively lower risk long term growth characteristics of those assets.

Listed property securities (LPS) are financial securities that control underlying physical property. They generate income and capital gains for investors from the ownership and management of physical property assets. LPS are traded on the stock market meaning that their value is easily realisable. LPS fit between equities & bonds in the risk spectrum, and have historically beaten them both in the absolute & risk adjusted return spectrum. An investment in these securities offers investors exposure to the returns from a range of property assets in New Zealand, Australia and markets overseas

Mint Diversified Income Fund (Retail)

This Fund looks to offer investors a sustainable income, whilst generating enough capital growth to protect the income generating capital at or above inflation levels. The Fund will look to achieve this objective by indirectly investing in a diversified range of assets which will include: cash, New Zealand/Australia and global fixed interest (including credit products), New Zealand/Australia listed property and equities, and global equities. 

The cash, fixed interest and credit asset classes are intended to provide the bulk of the portfolio income stream, and they are selected on the basis of sustainable yield. Cash will primarily be deposits and short-term securities issued by New Zealand registered banks.
The listed property asset class is intended to provide a superior yield and potential for capital growth at a relatively low volatility. The equity asset classes are intended to provide capital growth to the portfolio.

This Fund has a lower risk profile than that expected of the equities and listed property asset classes.

Contact Bay Financial Partners to see whether the Mint Asset Management Funds are suitable for a place in your portfolio.

Click here to download Mint Asset Management retail products Investment Statement


ANZ Investments' Balanced Fund Really Performs

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ANZ Investments LogoLast month the ANZ Investments "OneAnswer Single Asset Class Balanced Fund" reached a major milestone as it turned 21 years old. We couldn't help but note that this is very rare for a New Zealand Fund.

The OneAnswer Single Asset Class Balanced Fund invests mainly in shares and listed assets with some exposure to cash and fixed interest assets. The fund may also invest in alternative assets. So we don't believe its really a "single asset class" fund but that's how they have chosen to classify it.

After 21 years, the fund remains a top performer for Balanced Funds over short and long terms:

Ranked 2nd by FundSource for performance over the last 12 months - 14.56%
Ranked 1st by FundSource for performance over the last 5 years - 10.35%
Ranked 1st by FundSource for performance over the last 7 years - 5.21%

ANZ Investments OneAnswer Balanced Fund Performance chart

The performance of the OneAnswer SAC Balanced Fund is a shining example of ANZ Investments record of delivering strong and reliable returns for our clients.

ANZ Investments is just one of the many investment managers offering managed funds we can help you invest in. To discuss this and a myriad other managed fund options that may meet your needs please call us on 07 578 3863 to make an appointment, the first half hour is free!


Harbour Asset Management

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Harbour Asset Management logo

Harbour Asset Management only offer their premium managed funds to investors via a wrap platform. With Bay Financial Partners you can access Harbour Asset Management funds utilising either the OneAnswer or AEGIS wrap platforms.

If you would like to invest in any of the Harbour Asset Management Funds contact a Bay Financial Partners adviser on 0800 867 323 or email us.

Click here for Harbour Asset Management Investment Statement