Income Fund

Overview

The fund aims to pay distributions, while maintaining the fund’s capital value over the long-term, by selecting a mix of cash, fixed interest, equity and property investments. Investors can expect moderate to high levels of movement up and down in value, and to receive longer-term returns that are generally higher than term deposit rates of domestic major banks (but with more risk) and are lower than those of the Growth Fund (but with less risk).

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Unit Price

Month End Unit Price

As at 31 Mar 2024

0.9477 NZD

The unit prices shown do not take into account any adjustment for any accrued PIE tax that individual investors may need to pay on withdrawal. Buy/sell spreads may apply when transacting - there are currently none.

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Manager's Comment

How did your portfolio perform?

The Income Fund delivered a gross return of 2.87% for March, outperforming the fund’s market index return of 2.55% by 0.32%.

For the 12 months to the end of March, the Income Fund delivered a gross return of 6.66%, slightly outperforming the fund’s market index return of 6.51% by 0.15%.

Major Investments

As at 31 Mar 2024
Company name % of fund
Hunter Global Fixed interest Fund 21.15%
ANZ transactional bank account 3.58%
Vital Healthcare Property Trust 2.54%
Goodman Property Trust 2.10%
APA Group Limited 1.90%
Infratil Limited 1.87%
Genesis Energy Limited 1.78%
Tourism Holdings Limited 1.61%
Precinct Properties New Zealand Limited 1.59%
New Zealand Government 3% 20/04/2029 1.46%
Major holdings as % of total portfolio 39.57%

Performance over time

Return Comparison

As at 31 Mar 2024
1 Month 3 Months 1 Year *3 Years *Since commenced operation
Net Fund Return 1 Month 2.89% 3 Months 1.46% 1 Year 6.18% *3 Years 2.29% *Since commenced operation 2.02%
Gross Fund Return 1 Month 2.87% 3 Months 1.55% 1 Year 6.66% *3 Years 2.82% *Since commenced operation 2.55%
Composite Index 1 Month 2.55% 3 Months 1.95% 1 Year 6.30% *3 Years 1.07% *Since commenced operation 0.81%

*Annualised
Net Fund Returns are calculated before deduction of taxes but after deduction of fund charges and trading expenses and including imputation credits where available. Prior to October 2022 Net Fund Returns were calculated after deduction of fund charges, trading expenses and accrued tax for a New Zealand resident paying individual tax at the highest Prescribed Investor Rate (28%). Gross Fund Returns are calculated before deduction of taxes and fund charges but after deduction of trading expenses and including imputation credits where applicable. Market index returns do not have any deductions for fund charges, trading expenses or tax.

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Income Distributions

The Income Fund aims to make regular distributions on a quarterly basis in April, July, October and January.  You can elect to have distributions re-invested in the fund or paid into your bank account.

Date Cents per unit NZD
July 2022 0.750
October 2022 0.875
January 2023 1.000
April 2023 1.000
July 2023 1.000
October 2023 1.000
January 2024 1.000
April 2024 1.000

Fund update

As at 31 March 2024

This document tells you how the Income Fund has performed and what fees were charged. The document will help you to compare the fund with other funds. (Please note that this fund was previously known as the Forsyth Barr Income Fund, and that Fund Updates may refer to the fund by that name.)
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General Fund Information

Risk indicator

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Lower risk
Higher risk

The risk indicator is rated from 1 (low) to 7 (high). The rating reflects how much the value of the relevant fund’s assets goes up and down (volatility). A higher risk generally means higher potential returns over time, but more ups and downs along the way.

This fund started on 11 December 2020 and as at 31 December 2023 we calculated the risk indicator using market index returns data for periods before that date, and actual fund returns data afterwards. Using market index return data may make the risk indicator a less reliable indicator of how much fund values might go up and down in the future. See more information about the risks of investing in the Product Disclosure Statement.

Tactical asset allocation mix (as at 11 April 2024)

Cash and cash equivalents 3.00%
New Zealand fixed interest 23.00%
International fixed interest 21.00%
Australasian equities 40.00%
International equities 0.00%
Listed property 13.00%

Things to note

  • Manager: Forsyth Barr Investment Management Limited
  • Investment manager: Octagon Asset Management Limited
  • Date the fund started: 11 December 2020
  • Tax status: Portfolio Investment Fund (PIE)
  • Minimum suggested investment time frame: At least five years
  • Benchmark: None
  • Currency: New Zealand dollars

View the Product Disclosure Statement for detailed information about this Fund and Octagon Investment Funds Scheme.

Fees

  • Annual fund charges are currently 0.75% p.a. of the value of your investment. We pay management and administration charges along with the Supervisor fee out of this. All fees and charges are quoted exclusive of GST.

Forsyth Barr Investment Management Limited is the issuer and Octagon Asset Management Limited the investment manager of the Octagon Investment Funds. The comments on this webpage do not take your personal circumstances into account. Before acting on any information on this webpage, we recommend you seek financial advice. Past performance is not a reliable guide to future performance. Forsyth Barr Investment Management Limited, Octagon Asset Management Limited and their affiliates do not make any representation or warranty (express or implied) that this webpage is accurate, complete, or current and to the maximum extent permitted by law disclaim any liability for loss which may be incurred by any person relying on this webpage. This webpage is not intended to be distributed or made available to any person in any jurisdiction where doing so would constitute a breach of any applicable laws or regulations. 

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