Trans-Tasman Equities Fund
Overview
Invests mostly in New Zealand and Australian shares. Aims to achieve long-term returns (before fees, taxes and other expenses) greater than the S&P/NZX50 Gross Index with Imputation Index. These investments typically have high levels of movement up and down in value.
Unit Price
Month End Unit Price
1.0395 NZD
Buy/sell spreads may apply when transacting. There are currently none.
Manager's Comment
How did your portfolio perform?
The Trans-Tasman Equities Fund delivered a gross return of 2.39% during June, slightly underperforming the fund’s benchmark return of 2.92% by -0.53%.
The fund’s modest under-performance during June was driven by a dramatic bounce in A2 Milk. Concerns around additional fall-out from the US product recall abated over time, and no change to current year earnings guidance saw a strong share price bounce. The stock is still down 23% from its high in March.
Amcor (AU), Tourism Holdings and Flight Centre (AU) provided useful offsets to our underweight in A2 Milk. In aggregate, the 12.5% of the fund exposed to Australian stocks performed in-line with the NZ benchmark over the month.
What happened in the markets you invest in?
There was a near 55% spread in stock returns over June. A2 Milk had a dramatic 40% bounce over the month, whilst Serko fell 15%. Whilst not strong, economic data largely came in slightly better than expected during the month. Coupled with the dramatic fall in oil prices as Iran and the US enter a 60-day ceasefire negotiation, market sentiment improved.
Given the global backdrop over the June quarter was very negative, there were relatively few companies downgrading earnings for the June period end. THL was a notable exception as ‘end of useful rental life’ vehicle sales continue to be depressed. The stock price was up in June however, as a new bidder for the business trumped the current offer price. The THL board is discussing due diligence terms, and we expect both parties to be given enough access to allow them to firm up their acquisition offers.
The Australian economic backdrop worsened over the month; however, all the companies we hold are backed by solid bottom-up outlooks and attractive valuations.
What are we thinking about the future?
Lower oil prices feed through to the underlying economy in many positive ways. From lower inflation pressures, reduced cost of living impacts to improved business and consumer confidence. Combined with relatively few recent profit warnings, we have upgraded our short-term outlook for the economy and domestically exposed companies.
We still expect net downgrades to market profit expectations for 2027 earnings. However, the economic recovery in train at the start of the year is likely to get back on track sooner than otherwise expected - provided the 60-day ceasefire negotiation holds and turns into a stable relationship.
July is a quiet month before the flood of earnings over August. Throw in a general election in November with polls indicating no clear winning coalition in the lead, we expect a muted and cautious market backdrop for the period immediately ahead. From a valuation standpoint, we continue to view recent market winners in the defensive earnings space as fully valued, whilst many domestic cyclicals have become even more attractively priced.
Early in July we exited our Aus Brokers (AU) position after strong performance and added a position in Cleanaway (AU), as relative valuation and earnings prospects have brightened for the company.
Major Investments
| Company name | % of fund |
|---|---|
| Fisher & Paykel Healthcare Corporation Limited | 13.80% |
| Infratil Limited | 9.80% |
| Auckland International Airport Limited | 7.52% |
| Ebos Group Limited | 4.39% |
| Contact Energy Limited | 4.35% |
| Meridian Energy Limited | 4.30% |
| Mainfreight Limited | 4.23% |
| Spark New Zealand Limited | 3.94% |
| Mercury NZ Limited | 3.63% |
| The a2 Milk Company Limited | 2.90% |
| Major holdings as % of total portfolio | 58.85% |
Return Comparison
| 1 Month | 3 Months | 1 Year | *3 Years | *Since commenced operation | |
|---|---|---|---|---|---|
| Net Fund Return | 1 Month 2.29% | 3 Months N/A | 1 Year N/A | *3 Years N/A | *Since commenced operation 4.04% |
| Gross Fund Return | 1 Month 2.73% | 3 Months N/A | 1 Year N/A | *3 Years N/A | *Since commenced operation 4.19% |
| S&P/NZX 50 Gross with Imputation Index | 1 Month 2.92% | 3 Months N/A | 1 Year N/A | *3 Years N/A | *Since commenced operation 5.65% |
*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.
The S&P/NZX 50 Gross with Imputation Index (“Index”) is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by Forsyth Barr Limited. Copyright © 2015 S&P Dow Jones Indices LLC, a subsidiary of McGraw Hill Financial Inc., and/or its affiliates. All rights reserved. Redistribution, reproduction and/or photocopying in whole or in part are prohibited without written permission of S&P Dow Jones Indices LLC. For more information on any of S&P Dow Jones Indices LLC’s indices please visit www.spdji.com. S&P® is a registered trademark of Standard & Poor’s Financial Services LLC and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC. Neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their third party licensors make any representation or warranty, express or implied, as to the ability of any index to accurately represent the asset class or market sector that it purports to represent and neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their third party licensors shall have any liability for any errors, omissions, or interruptions of any index or the data included therein.
Fund update
As at 30 June 2026This document tells you how the Trans-Tasman Equities Fund has performed and what fees were charged. The document will help you to compare the fund with other funds.
General Fund Information
Risk indicator
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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 1 May 2026 and has no actual returns data. We’ve calculated the risk indicator using market index returns data for periods before that date, and actual fund returns data for the remainder of the five year period to 30 June 2026. Using market index returns 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.
Target investment mix
| Cash and cash equivalents | 5.00% |
| New Zealand fixed interest | 0.00% |
| International fixed interest | 0.00% |
| Australasian equities | 95.00% |
| International equities | 0.00% |
| Listed property | 0.00% |
Things to note
- Manager: Salt Investment Funds Limited
- Investment manager: Octagon Asset Management Limited
- Date the fund started: 14 May 2026
- Tax status: Portfolio Investment Fund (PIE)
- Minimum suggested investment time frame: At least five years
- Benchmark: S&P/ NZX50 Gross with Imputation Index
- 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 1.15% 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.
Important resources
Salt Investment Funds 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. Salt Investment Funds 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.