FUND CHANGES

NOVEMBER 2021

As part of our regular review and monitoring of the investment funds, Trust Management intends to implement a number of enhancements to the PIE Funds.

These enhancements are summarised below. 

Trust Management issued an updated Statement of Investment Policies and Objectives ('SIPO') which reflect these changes. The effective date for these documents was 31 Octber 2021.

TRUST MANAGEMENT ESG
BALANCED FUND

CHANGE TO INVESTMENT SETTINGS

The investment settings reflected in the management of the Trust Management ESG Balanced Fund (Balanced Fund) are subject to continuous review by us to ensure they remain appropriate to meet the long term of objectives of the Fund.

A review of the long term benchmark asset allocation - the target weightings of the Balanced Fund to various asset classes such as Equities (Shares), Fixed Interest (Bonds) and Property - was recently undertaken.  

As a result of this review, a decision was made to reduce the Balanced Fund’s target exposure to Fixed Interest in favour of a slightly higher investment allocation to both Equities (international and New Zealand), and Property.

While we believe that Fixed Interest investments will continue to play an important role in a diversified portfolio, given their low correlation with more pro-cyclical assets such as Equities and Property, low income returns and rising long term bond yields are expected to continue to dampen returns from this asset class. 

The review considered future long term returns could be enhanced by reducing the Balanced Fund’s exposure to Fixed Interest, in favour of other income producing assets with higher growth potential.  The changes were implemented at the end of October 2021.

 

Table one below illustrates the old and new strategic asset allocation for the Balanced Fund.

A copy of the updated SIPO can be found here.