As of 31 March 2021 Market overview Global markets were again dominated by the re-opening theme last month – there For more information on our Funds, was a strong pro-risk sentiment with equities generating positive returns and, please contact: within equities, the countries most advanced in their Covid vaccine rollout (e.g. the US and the UK) offered the better performance. The MSCI All Country World index David Boyle was up 3.3%. Head of Sales & Marketing The Australian market rose 2.4% in March and the NZ market rose 2.7%. Consumer Level 25, SAP Tower Discretionary, Utilities and Real Estate were the best performing sectors in 151 Queen Street, Auckland Australia, with Materials and IT lagging. In New Zealand, it was the smaller cap New Zealand tech stocks that did the best – Vista +29%, Serko +22% and Pushpay +22%. P 0800 646 833 Laggards in NZ were Synlait, My Food Bag and Oceania Group. Synlait withdrew its E [email protected] full year guidance citing significant uncertainty and volatility. Oceania raised new www.mintasset.co.nz equity to fund acquisitions. In a case of caveat emptor, My Food Bag debuted on the market and promptly under-performed – in part, because the IPO price was set earlier in February before the market sold off. Bond rates have been rising in the US, with spill over effects to other bond markets, in part due to expectations of an economic bounce following the early success so far of the Covid vaccines. In March, this was exacerbated by the US fiscal stimulus measures – a US$1.9 trillion pandemic relief plan followed by a US$2.4 trillion infrastructure proposal. Large scale fiscal spending should boost the US economy, possibly causing inflation, and definitely causing the US government to borrow more – i.e. issue more bonds to pay for their programs. More supply of bonds equals higher yields to tempt investors to buy them. The size of the stimulus package will test the US Federal Reserve’s resolve with their current monetary policy settings. Funds at a glance 1 Month 3 Months 1 Year 5 Years Net* 2.78% -5.17% 19.85% 12.58% Mint Australasian Equity Fund Gross** 2.90% -4.86% 21.45% 14.21% Net 2.99% -4.17% 28.39% - Mint New Zealand SRI Equity Fund Gross 3.08% -3.93% 29.72% - Net 1.22% -3.59% 27.25% 8.12% Mint Australasian Property Fund Gross 1.32% -3.34% 28.63% 9.62% Net 1.51% -1.03% 11.14% 4.55% Mint Diversified Income Fund Gross 1.61% -0.78% 12.36% 5.80% Net 3.54% 2.22% 36.49% - Mint Diversified Growth Fund Gross 3.69% 2.58% 38.38% - Performance returns greater than 3 months are per annum. *Net returns are after fees and before investor tax. Net after tax performance can be found in the latest Quarterly Fund Update, available on our website. **Gross returns are before fees and excluding imputation credits. I nvestment team Head of Portfolio Portfolio Portfolio Portfolio Investment Investments Manager Manager Manager Manager Analyst Anthony Halls Carlie Eve David Fyfe John Middleton Marek Krzeczkowski Henry Morrison-Jones Disclaimer text can go here if need be. As of 31 March 2021 SINGLE SECTOR FUND Unit price Fund size Mint Australasian $4.0466 $308M Equity Fund 1 month 3 months 1 year 5 years 2.78% -5.17% 19.85% 12.58% Our portfolio returned 2.78% for the Net returns month. Sector Allocation The main positive contributions came from F&P Healthcare, Mainfreight and Mercury Energy. Laggards were the a2 Milk Company, Meridian Energy and Summerset Group. FPH recovered from a weak February, as a resurgence in Covid-19 in parts of Europe continues to support it’s near term earnings. Mercury was part of the successful consortium bidding for Tilt, with Mercury coming away with Tilt’s NZ windfarms and development sites (leaving Tilt’s Australian assets with the other members of the consortium). a2 Milk drifted off over the month as data points on both pricing and volumes failed to provide a recovery story after previous downgrades. In March, we took profit on our Codan and Telix Pharmaceuticals holdings, and exited Bapcor. We added Health Care – 23% Sydney Airport, Fortesque Metals, Ramsay Healthcare and Utilities – 17% Oceania Group back into the portfolio. We also took some My Industrials – 14% Food Bag in the IPO, albeit a toehold that we have added to over the rest of the month. Cash and cash equivalents – 11% Communication Services – 7% Real Estate – 7% Materials – 7% Consumer Staples – 5% Information Technology – 3% $10,000 invested since inception Consumer Discretionary – 2% $42,000 Financials – 2% Energy – 0.1% $36,000 $30,000 Top Holdings $24,000 a2 Milk Company Ltd. Auckland International Airport Limited $18,000 Fisher & Paykel Healthcare Corporation $12,000 Mainfreight Limited Mercury NZ Ltd. $6,000 Meridian Energy Limited Feb-08 Feb-09 Feb-10 Feb-11 Feb-12 Feb-13 Feb-14 Feb-15 Feb-16 Feb-17 Feb-18 Feb-19 Feb-20 Feb-21 Feb-07 Spark New Zealand Limited Mint Australasian Equity Fund Cumulative performance. Returns are after fees and before investor tax. Fund inception: 15 February 2007. As of 31 March 2021 SINGLE SECTOR FUND Unit price Fund size Mint New Zealand SRI $1.5843 $78M Equity Fund 1 month 3 months 1 year 5 years 2.99% -4.17% 28.39% -% Our portfolio returned 2.99% for the Net returns month. Sector Allocation Our top performers for the month were Fisher & Paykel Healthcare (FPH), Pushpay and Serko. FPH recovered from a weak February, as a resurgence in Covid-19 in parts of Europe continues to support its near term earnings. Pushpay bounced on the sell down of the largely anticipated Huljich family stake (16%). Serko’s strong performance followed an update on corporate travel volumes recovering in both NZ and Australia as well as an update on their Booking.com partnership as customers are migrated onto Serko’s platform. The detractors of the month were a2 Milk, Meridian Energy and Summerset Group. a2 Milk drifted off over the month as data points on both pricing and volumes failed to provide the recovery story that is needed for confidence in the name post multiple downgrades. Meridian Energy (like Contact Energy) continued to be pushed Health Care – 26% around with the green ETF flows, which are expected to be Utilities – 19% rebalanced mid-April and remove the overhang. In the month, Industrials – 18% we added My Food Bag to the portfolio and increased our Communication Services – 9% Vista Group position. We continued reducing our holdings in Real Estate – 7% Arvida Group, Z Energy and Scales. Consumer Staples – 6% Information Technology – 6% Materials – 4% Consumer Discretionary – 3% $10,000 invested since inception Cash and cash equivalents – 2% $17,000 Financials – 2% Energy – 0.2% $15,000 Top Holdings $13,000 a2 Milk Company Ltd. Auckland International Airport Limited $11,000 Fisher & Paykel Healthcare Corporation Infratil Limited $9,000 Mainfreight Limited Meridian Energy Limited Oct-17 Oct-19 Oct-20 Oct-18 Spark New Zealand Limited Mint NZ SRI Equity Fund Cumulative performance. Returns are after fees and before investor tax. Fund inception: 13 October 2017. As of 31 March 2021 Unit price Fund size SINGLE SECTOR FUND $2.5414 $81M Mint Australasian 1 month 3 months 1 year 5 years Property Fund 1.22% -3.59% 27.25% 8.12% Net returns Our portfolio returned 1.22% for the month. The top contributors were holdings in Kiwi Property Group, Sub-Sector Allocation Goodman Property, Stride Property and Centuria Industrial. The key detractors to performance were Vital Healthcare and Argosy. After a weak February performance both the NZ and AU listed property sectors recorded a positive performance over March, with NZ +0.4% and AU +6.6% (in AUD). Kiwi Property Group was the top performer over the month in NZ (+3.8%) following an upgrade to earnings and positive portfolio valuation. Goodman Property (+3.5% over March) also announced its draft property valuations with a strong uplift of 12.5%. Precinct surprised the market with its management internalisation announcement. The internalisation at a cost of $215m is earnings accretive. The Diversified REITs – 57% internalisation was funded using balance sheet capacity. Real Estate Operating Companies – 15% In Australia, industrial outperformed, followed by office and Industrial REITs – 10% diversified. After a period of underperformance, the industrial sector was boosted by a strong performance by Centuria Specialised REITs – 7% Industrial (+14.0%) which announced an 8.1% increase in the Retail REITs – 3% value of its portfolio. Residential REITs – 2% Health Care – 2% Cash and cash equivalents – 2% $10,000 invested since inception Diversified Real Estate Activities – 1% $30,000 Office REITs – 1% $26,000 $22,000 Top Holdings $18,000 Argosy Property Limited Goodman Property Trust $14,000 Kiwi Property Group Ltd. $10,000 Precinct Properties New Zealand Ltd. Property For Industry Limited $6,000 Stride Property & Stride Invest Mgmt. Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20 Dec-07 Vital Healthcare Property Trust Mint Australasian Property Fund Cumulative performance. Returns are after fees and before investor tax. Fund inception: 31 December 2007. As of 31 March 2021 DIVERSIFIED FUND Unit price Fund size Mint Diversified $1.1083 $259M Income Fund 1 month 3 months 1 year 5 years 1.51% -1.03% 11.14% 4.55% Our portfolio returned 1.51% for the Net returns month.