NZ Funds KiwiSaver Scheme
Security Listings 20 August 2021 Product Disclosure Statement
New Zealand Funds Management Limited is the issuer of the NZ Funds KiwiSaver Scheme.
The Product Disclosure Statement and the Disclose Register contain important information to help you to understand how your money is managed and the risks associated with investing.
For further information or to request a copy of the NZ Funds KiwiSaver Scheme Product Disclosure Statement, please contact New Zealand Funds Management Limited or visit our website at www.nzfunds.co.nz.
Even if you have invested with NZ Funds for many years, please take the time to read these documents regularly as the content is frequently updated.
Important Legal Information
Please note that these Security Listings have been provided for information purposes only. The content of this document is not intended as a substitute for specific professional advice on investments, financial planning or any other matter. KiwiSaver Income Strategy
Complete Strategy as at 20 August 2021
estimated credit portfolio portfolio strategy / security yield1 rating exposure % exposure $ cash and cash equivalents 44.6% $29,536,842 new zealand and australian bonds 29.9% $19,798,479 Housing NZ Ltd 2.183% 24/04/2030 2.0% AAA 3.4% $2,242,313
Vector Ltd 4.996% 14/03/2024 1.9% BBB 3.2% $2,096,306
Westpac Banking 4.695% 01/09/2026 0.8% BBB+ 2.0% $1,337,208
Kiwibank Ltd 2.36% 11/12/2030 2.4% BBB- 1.8% $1,169,342
Housing NZ Ltd 2.97% 12/06/2023 1.1% AAA 1.6% $1,068,074
Precinct Properties New Zealand 4.42% 27/11/2024 2.4% NR 1.5% $994,685
Fletcher Building 3.9% 15/03/2025 2.5% NR 1.5% $970,320
Westpac floating perpetual 0.6% BBB+ 1.4% $925,876
Infratil 5.5% 15/06/2024 2.8% NR 1.2% $765,205
ASB Bank Limited 5.25% 15/12/2026 1.5% BBB+ 1.1% $741,432
Precinct Properties 2.85% 28/05/2027 2.8% NR 1.0% $679,469
Housing NZ Ltd 3.36% 12/06/2025 1.5% AAA 1.0% $662,249
Transpower New Zealand 1.735% 04/09/2025 1.7% AA 0.9% $623,219
Fletcher Building 2.8% 15/03/2026 2.9% NR 0.9% $595,775
Property for Industry 4.25% 01/10/2025 2.4% NR 0.9% $588,395
Transpower 1.52% 08/04/2026 1.9% AA 0.9% $578,770
Peet 6.75% 07/06/2024 7.5% NR 0.9% $578,351
Insurance Australia Group 5.15% 15/06/2043 1.9% BBB 0.8% $505,118
Port of Tauranga 1.02% 29/09/2025 2.0% A- 0.8% $496,665
Westpac Banking floating 27/08/2029 1.7% BBB+ 0.7% $476,438
Ryman Healthcare 2.55% 18/12/2026 2.7% NR 0.7% $453,300
Trustpower 3.97% 22/02/2029 2.8% NR 0.6% $396,042
Spark Finance 2.6% 18/03/2030 2.5% A- 0.5% $324,410
Mercury NZ 3.6% 11/07/2049 2.5% BB+ 0.5% $322,641
Infratil 3.6% 15/12/2027 3.1% NR 0.2% $113,200
WEL Networks 4.9% 02/08/2023 2.5% NR 0.1% $93,675 international bonds 33.6% $22,270,397 Credit default swaps - Market value² n/a n/a 5.1% $3,367,449
JPMorgan Chase 3.625% 01/12/2027 2.0% BBB+ 2.1% $1,368,462
Bausch Health 5% 30/01/2028 6.6% B 1.9% $1,240,968
... continues on next page KiwiSaver Income Strategy
Complete Strategy as at 20 August 2021 (continued)
estimated credit portfolio portfolio strategy / security yield1 rating exposure % exposure $ international bonds (continued) Goldman Sachs Group 3.5% 01/04/2025 1.4% BBB+ 1.8% $1,213,061
Bank of America Corp 2.687% 22/04/2032 2.5% A- 1.8% $1,162,690
Citigroup Inc 4.125% 25/07/2028 2.3% BBB 1.7% $1,156,658
First Quantum Minerals 6.875% 01/03/2026 5.4% B 1.6% $1,068,842
American Homes 4 Rent 4.9% 15/02/2029 2.4% BBB- 1.6% $1,052,870
AT&T Inc 4.35% 01/03/2029 2.3% BBB 1.6% $1,044,465
Alcoa 4.125% 31/03/2029 3.1% BB+ 1.4% $947,788
Goldman Sachs 1.431% 09/03/2027 1.7% BBB+ 1.3% $892,143
Energizer Holdings 4.75% 15/06/2028 4.4% B 1.3% $890,191
Uber Technologies 8% 01/11/2026 3.7% B- 1.3% $846,855
Uber Technologies 6.25% 15/01/2028 4.4% B- 1.3% $833,819
Tyson Foods Inc 4.35% 01/03/2029 2.1% BBB+ 1.2% $766,130
Oracle Corp 2.875% 25/03/2031 2.6% BBB+ 1.1% $706,746
McDonald's Corp 2.625% 01/09/2029 2.1% BBB+ 1.0% $664,359
Verizon Communications Inc 4.016% 03/12/2029 2.3% BBB+ 0.9% $628,661
Oracle Corp 2.8% 01/04/2027 1.9% BBB+ 0.9% $594,098
Netflix 5.375% 15/11/2029 2.7% BB+ 0.7% $468,138
Dell 6.02% 15/06/2026 1.9% BBB- 0.6% $400,718
Bank of America Corp 3.864% 23/07/2024 1.0% A- 0.6% $400,233
British Telecom 5.125% 04/12/2028 2.5% BBB 0.5% $304,861
Broadcom Inc 4.25% 15/04/2026 1.9% BBB- 0.4% $250,192 total economic exposure³ 108.2% $71,605,718 foreign currency 29.8% $19,725,239
1. The yield calculation represents an estimate of the yield on the Portfolio, calculated using the most recent information provided by the external investment managers involved in managing the Portfolio, hedged back to New Zealand dollars where appropriate. It is not calculated 'as at' any particular date as different external investment managers provide data at varying dates. As a result, in some instances the yields may lag the date of this Portfolio summary. The yield is not the actual return on the Portfolio, nor is it a projection or forecast. The Portfolio's return could be less than the Portfolio's yield. Details of the yield calculation are available on request from NZ Funds. 2. Credit default swaps notional value is currently $76,495,302. 3. Total economic exposure represents the total economic value of a Portfolio, which is the net asset value of the Portfolio adjusted for the effect of direct derivative positions taken by the Portfolio and indirect derivative positions taken other than via a fund including hedge funds. For more details of the total economic exposure calculations, contact NZ Funds. Note: Rounding may affect any subtotals and totals. KiwiSaver Inflation Strategy
Complete Strategy as at 20 August 2021
estimated portfolio portfolio strategy / security1 yield2 exposure % exposure $ cash and cash equivalents 1.0% $1,007,570 new zealand and australian bonds 0.3% $332,066 New Zealand inflation rate swaps exposure³ n/a 0.3% $332,066 international bonds 1.3% $1,289,999 Swaptions - Market value⁴ n/a 1.3% $1,289,999 new zealand and australian shares 65.0% $65,462,122 Dividend and Growth Strategy 3.3% 64.8% $65,256,877
Income Generator Strategy 2.0% 0.2% $205,245 international shares 54.1% $54,520,677 Absolute Return Strategy⁵ 0.5% 47.5% $47,904,915
Global total return swap exposure n/a 4.7% $4,712,392
Equity index futures (long) n/a 1.9% $1,903,369 alternative securities 1.4% $1,387,205 Universa Black Swan Protection Protocol n/a 1.0% $1,008,976
Cryptocurrency future exposure n/a 0.4% $378,229 total economic exposure⁶ 123.1% $123,999,638 foreign currency 8.8% $8,850,971
1. Where a strategy is shown, the asset class reflects the predominant assets in the strategy. The strategy may include other assets including cash. 2. The yield calculation represents an estimate of the yield on the Portfolio, calculated using the most recent information provided by the external investment managers involved in managing the Portfolio, hedged back to New Zealand dollars where appropriate. It is not calculated 'as at' any particular date as different external investment managers provide data at varying dates. As a result, in some instances the yields may lag the date of this Portfolio summary. The yield is not the actual return on the Portfolio, nor is it a projection or forecast. The Portfolio's return could be less than the Portfolio's yield. Details of the yield calculation are available on request from NZ Funds. 3. New Zealand inflation swaps notional value is currently $17,946,455. 4. Swaptions notional value is currently $26,322,170. 5. As at the date of the security listings, the majority of the assets of the Absolute Return Strategy were held in this asset class. The Absolute Return Strategy may also hold assets in other asset classes. 6. Total economic exposure represents the total economic value of a Portfolio, which is the net asset value of the Portfolio adjusted for the effect of direct derivative positions taken by the Portfolio and indirect derivative positions taken other than via a fund including hedge funds. For more details of the total economic exposure calculations, contact NZ Funds. Note: Rounding may affect any subtotals and totals. KiwiSaver Growth Strategy
Complete Strategy as at 20 August 2021
estimated portfolio portfolio strategy / security1 yield2 exposure % exposure $ cash and cash equivalents 1.0% $4,851,904 new zealand and australian bonds 0.9% $4,590,366 New Zealand Government 4.5% 15/04/2027 1.3% 0.5% $2,315,399
Australian Government 0.5% 21/09/2026 0.9% 0.5% $2,274,968 international bonds 1.0% $4,678,694 United States Government 1.625% 15/05/2031 1.5% 0.3% $1,596,501
Deutschland Republic 0.5% 15/02/2028 0.2% 0.3% $1,435,889
Japan Government 0.1% 20/06/2028 0.4% 0.3% $1,286,159
United Kingdom Gilt 0.125% 31/01/2028 0.7% 0.1% $360,144 new zealand and australian shares 52.9% $256,565,037 Dividend and Growth Fund 3.3% 51.2% $248,639,921
Income Generator Strategy 2.0% 0.6% $2,897,815
Australian futures index exposure n/a 0.5% $2,454,668
Fisher & Paykel Healthcare 1.8% 0.1% $629,171
Spark New Zealand 7.3% 0.1% $285,788
Auckland International Airport 2.3% 0.1% $279,059
Mainfreight 1.9% 0.0% $234,344
Fletcher Building 6.3% 0.0% $211,822
Meridian Energy 4.2% 0.0% $206,556
Ryman Healthcare 2.2% 0.0% $196,016
Contact Energy 5.7% 0.0% $190,454
Infratil 3.6% 0.0% $175,252 a2 Milk 0.0% 0.0% $164,172
... continues on next page KiwiSaver Growth Strategy
Complete Strategy as at 20 August 2021 (continued)
estimated portfolio portfolio strategy / security1 yield2 exposure % exposure $ international shares 64.1% $311,089,391 Global total return swaps exposure n/a 20.8% $100,978,217
Equity index futures (long) n/a 17.0% $82,415,807
Suvretta Offshore Fund n/a 6.4% $30,862,073
MFS Global Research Focused Fund 0.5% 5.9% $28,442,719
Fisher International 0.2% 5.1% $24,743,733
Galaxy Digital Holdings Ltd n/a 3.8% $18,564,266
Emerson Point Capital Partners LP n/a 2.9% $13,865,044
Goanna Capital Fund n/a 1.1% $5,428,995
Galaxy Digital Holdings Ltd Warrants n/a 0.6% $2,928,493
Global share options n/a 0.6% $2,860,045 commodities 0.0% $135,900 Commodity option exposure n/a 0.0% $135,900 alternative securities 9.6% $46,815,418 Galaxy Institutional Fund n/a 4.9% $23,825,085
Cryptocurrency future exposure n/a 3.2% $15,681,145
Universa Black Swan Protection Protocol n/a 1.5% $7,309,188 total economic exposure3 129.6% $628,726,710 foreign currency 23.3% $113,263,385
1. Where a strategy is shown, the asset class reflects the predominant assets in the strategy. The strategy may include other assets including cash. 2. The yield calculation represents an estimate of the yield on the Portfolio, calculated using the most recent information provided by the external investment managers involved in managing the Portfolio, hedged back to New Zealand dollars where appropriate. It is not calculated 'as at' any particular date as different external investment managers provide data at varying dates. As a result, in some instances the yields may lag the date of this Portfolio summary. The yield is not the actual return on the Portfolio, nor is it a projection or forecast. The Portfolio's return could be less than the Portfolio's yield. Details of the yield calculation are available on request from NZ Funds. 3. Total economic exposure represents the total economic value of a Portfolio, which is the net asset value of the Portfolio adjusted for the effect of direct derivative positions taken by the Portfolio and indirect derivative positions taken other than via a fund including hedge funds. For more details of the total economic exposure calculations, contact NZ Funds. Note: Rounding may affect any subtotals and totals. new zealand funds management limited auckland
Level 16 21 Queen Street Private Bag 92163, Auckland 1142 New Zealand
T. 09 377 2277 T. 0508 733 337 E. [email protected] www.nzfunds.co.nz
wellington christchurch timaru
Level 3 Level 2 Level 1 Central on Midland Park 112 Cashel Street 2 Sefton Street East 40 Johnston Street Christchurch 8011 Timaru 7910 Wellington 6140
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