4/13/2021 12:00:00 AM

Fund Reviews: Diversified

Written by Mike Taylor,  Founder & CEO


The Conservative Fund rebounded in March as the NZ 10-year government bond rate settled around 1.7%, having traded as high as 2.0232%. Interest rates eased from the highs seen earlier in the month as changes to the property tax rules caused local investors to cool their expectations about rate hikes in NZ (that might be needed to slow the property market). With the large recalibration of rates potentially now out of the way, higher moves will be data driven, namely inflation and unemployment – the main two targets of most central banks. However, while the government might have slammed the brakes on the property market, other forces still have their foot on the accelerator; lack of supply, building costs, and (still historically) low rates.

The equity portion of the fund continued to perform well, with the S&P 500 moving to new all-time highs. Locally, the NZX continues to struggle. This month new positions were added in US leading home construction company DR Horton, Auckland Airport, and Abbot Laboratories, a global medical device company with a leading Covid-19 test. AMP, which has been a poor performer, was sold.

The fund was up 0.6% during March and has a 12-month return of 8.3%.

Information is current as at 31 March 2021. Pie Funds Management Limited is the manager of the funds in the Pie Funds Management Scheme. Any advice is given by Pie Funds Management Limited and is general only. Our advice relates only to the specific financial products mentioned and does not account for personal circumstances or financial goals. Please see a financial adviser for tailored advice. You may have to pay product or other fees, like brokerage, if you act on any advice. As manager of the Pie Funds Management Scheme investment funds, we receive fees determined by your balance and we benefit financially if you invest in our products. We manage this conflict of interest via an internal compliance framework designed to help us meet our duties to you. For information about how we can help you, our duties and complaint process and how disputes can be resolved, or to see our product disclosure statement, please visit www.piefunds.co.nz. Please let us know if you would like a hard copy of this disclosure information. Past performance is not a guarantee of future returns. Returns can be negative as well as positive and returns over different periods may vary.