tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Friday, November 1st, 10:39AM

News

rss
Latest Headlines

Harbour reanchors its index funds

Harbour Asset Management has made changes to its index funds reflecting changes in the market

Friday, March 5th 2021, 7:19AM

The Wellington-based manager has reviewed its low-cost New Zealand index tracking equity funds and made changes based on investor feedback.

One of in outcomes of these changes is a based on a view that value investing is unlikely to make a comeback anytime soon.

Currently, the Harbour NZ Equity Advanced Beta Fund largely (70%)  tracks the S&P/NZX Portfolio Index with an overlay of Environmental, Social and Governance considerations (ESG). The remaining 30% is invested in companies which exhibit characteristics of growth, value and yield.

The value element of this strategy is being removed.

"This fund has not been performing as we would like it to," managing director Andrew Bascand says.

"We are in the midst of a sustained period of technological change and disruption, and many traditional value companies have seen their revenue pools eaten away by industry disruptors. Companies are not performing in the ways which older models might have predicted.

"While value and yield factors may turn around, we believe it’s time to make changes to the portfolio construction process to improve client outcomes and better reach the purpose of this fund, which is to provide low-cost exposure to the New Zealand equity market."

Under its new strategy it will passively track the S&P/NZX Portfolio Index.

Also the management fee on this fund will drop from 45 basis points to 20 points.

When the changes are made at the start of April the fund will be renamed Harbour NZ Index Shares Fund.

Later in April Harbour plans to launch the Harbour Sustainable NZ Shares Fund.

"After over a decade of focus on responsible investing and ESG research, we also intend to launch a low cost ESG fund," Bascand says.

"The Harbour Sustainable NZ Shares Fund will also track the S&P/NZX Portfolio Index, however we will exclude large carbon emitters, alcohol, gambling, munitions, adult entertainment, nuclear armaments, firearms, child labour, and companies with human or animal rights violations. It will also incorporate positive and negative ESG tilts over the remaining companies, to include a larger weighting of companies which perform well in our proprietary ESG scoring, and less of those that do not."

The fee for this fund will be 0.25%pa.

"We’re excited to be broadening our product range with these options. They will be great tools for investors building diversified portfolios, who want exposure to local equities at a relatively low cost," Bascand says.

« Alternative capital pathways on the up: FMA reportsMann on a mission to diversify financial advice »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

Weekly Wrap

Previous News
Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build 5.44 - - -
AIA - Go Home Loans 7.99 5.99 5.69 5.69
ANZ 7.89 6.59 6.29 6.29
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 5.99 5.69 5.69
ASB Bank 7.89 5.99 5.69 5.69
ASB Better Homes Top Up - - - 1.00
Avanti Finance 8.40 - - -
Basecorp Finance 9.60 - - -
BNZ - Classic - 5.99 5.69 5.69
Lender Flt 1yr 2yr 3yr
BNZ - Mortgage One 7.94 - - -
BNZ - Rapid Repay 7.94 - - -
BNZ - Std 7.94 5.99 5.69 5.69
BNZ - TotalMoney 7.94 - - -
CFML 321 Loans 6.20 - - -
CFML Home Loans 6.45 - - -
CFML Prime Loans 8.25 - - -
CFML Standard Loans 9.20 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 5.79 - -
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Owner Occ 7.65 5.99 5.75 5.69
Co-operative Bank - Standard 7.65 6.49 6.25 6.19
Credit Union Auckland 7.70 - - -
First Credit Union Special - 6.40 6.10 -
First Credit Union Standard 8.50 7.00 6.70 -
Heartland Bank - Online 7.49 ▼5.65 ▼5.55 ▼5.55
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.90 7.00 6.50 -
ICBC 7.49 5.99 5.65 5.59
Kainga Ora 8.39 7.05 6.59 6.49
Kainga Ora - First Home Buyer Special - - - -
Lender Flt 1yr 2yr 3yr
Kiwibank 7.75 6.89 6.59 6.49
Kiwibank - Offset 8.25 - - -
Kiwibank Special 7.75 5.99 5.69 5.69
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 8.44 ▼6.39 ▼6.09 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
SBS Bank 7.99 6.95 6.29 6.29
SBS Bank Special - ▼6.15 5.69 5.69
SBS Construction lending for FHB - - - -
Lender Flt 1yr 2yr 3yr
SBS FirstHome Combo 5.44 ▼5.15 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.75 - - -
TSB Bank 8.69 6.79 6.49 6.49
TSB Special 7.89 5.99 5.69 5.69
Unity ▼7.64 5.99 5.69 -
Unity First Home Buyer special - 5.49 - -
Wairarapa Building Society 8.50 ▼6.19 ▼5.79 -
Westpac 8.39 6.89 6.39 6.39
Westpac Choices Everyday 8.49 - - -
Westpac Offset 8.39 - - -
Lender Flt 1yr 2yr 3yr
Westpac Special - 6.29 5.79 5.79
Median 7.99 6.17 5.79 5.69

Last updated: 30 October 2024 9:36am

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com