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The Milford
KiwiSaver
Active Growth
Fund
Fund Update
April 2015
Portfolio Manager
Dear Fellow Investors
Your Fund had a positive return of 0.3% in March compared with a negative return of
0.8% for the NZX50 Gross Index and a negative 1.6% for the ASX 200 Accumulation
Index, in New Zealand dollar terms.
Brian Gaynor
.....................................................
Fund Portfolio Mix
20%
39%
5%
24%
NZX Listed Companies
Global Holdings
Bonds
9%
3%
NZ Unlisted Companies
ASX listed Companies
Cash
...................................................
Key Fund Stats
As at 31 March 2015
Unit Price
Fund Size
$2.5588
$354 million
.....................................................
Fees
1.05% p.a. capped management fee plus a
performance fee equal to 15% of returns above
10% (after fees and before tax). Any international
management fees are in addition to any Milford
fees. There is also a $36 p.a. member
Administration and Registry fee.
.....................................................
The main positive contributors in March were two ASX listed companies Site Group
International, which was up 76% during the month, and iiNet, which was the subject of a
takeover offer. A number of other ASX investments, including Goodman Group, Slater &
Gordon and National Storage, also made strong contributions during the month.
The main positive NZX contributors were Auckland International Airport, Z Energy and
Restaurant Brands. Orion Health, Fisher & Paykel Healthcare and Wynyard were the
largest negative NZX contributors in March.
31 March year
Active Growth
2015
12.2%
2014
20.4%
2013
26.4%
2012
8.1%
2011
5.7%
2010
22.9%
*In New Zealand dollars
NZX
13.5%
16.2%
26.0%
2.0%
5.3%
26.2%
ASX*
8.9%
(2.6%)
18.1%
(12.4%)
8.6%
48.2%
The 12.2% return for the March 2015 year was lower than the two previous years and
below the 13.5% return for the NZX50 Gross Index. There were a number of reasons for
this;
We manage risk as well as return and have slightly reduced the risk of the
Fund as the current bull market matures. This risk reduction strategy is mainly
achieved by increasing the Fund’s cash holdings
A number of our major holdings had a disappointing year. These included
Wynyard, which was down 38.6% for the twelve months ended March 31, a2
Milk minus 38.5%, Fletcher Building was off 7.8% and NZX down 8.8%.
The outlook for the next twelve months is mixed. The positive features are low inflation
and low interest rates while the world is awash with cash. This encourages investors to
look at sharemarkets for yield and growth.
On the other hand company valuations are high and the bull market is maturing. In
addition there are a number of economic uncertainties, particularly slower economic
growth in China and the continuing impact that this will have on commodity prices.
Investment Objective
Your Fund is hoping to achieve a return between 7.5% and 12.5% over the next twelve
months with the lower figure being more realistic than the higher. Needless to say we
will be aiming for the higher figure.
The Fund invests in New Zealand and global
securities and has a target return of 10% (after fees
and before tax).
Brian Gaynor
Disclosure of interest: Milford staff had $2,823,096 invested in the Fund as at 31 March 2015 unit price.
April 2015
Milford KiwiSaver Active Growth Fund Update
Investment Performance to 31 March 2015 (after fees* and before tax)
Milford Active Growth Fund
Benchmark
Over / Under Benchmark
After tax at 28% PIR
NZX 50 Gross Index
Past Month
Past 1 Year
Past 3 Years
(p.a)
Past 5 Years
(p.a)
Since Inception
1 October 2007
(p.a)
0.28%
12.17%
19.51%
14.29%
14.07%
0.80%
10.00%
10.00%
10.00%
10.00%
-0.52%
+2.17%
+9.51%
+4.29%
+4.07%
-0.04%
10.81%
18.39%
13.13%
12.70%
-0.76%
13.50%
18.46%
12.29%
4.21%
The performance is based on the performance of the AonSaver AMT Milford Aggressive Fund until 31/3/2010 and the Milford Aggressive KiwiSaver Fund from 1/4/2010. The investment
policy of the Milford KiwiSaver Aggressive Fund replicates that of the AonSaver AMT Milford Aggressive Fund, in place since 1 November 2007. On 1/10/2011 this Fund was renamed the
Milford KiwiSaver Active Growth Fund.
*Other than $36 p.a Administration and Registry fee.
For details of how investment performance is calculated, please see www.milfordasset.com/performance/fund-performance/
Please note past performance is not a guarantee of future returns.
..............................................................................................................................................................................
Investment Performance to 31 March 2015
(cumulative performance since inception, after fees* and before tax
200.0%
Active Growth
Fund +168.3%
Cumulative Return
150.0%
Benchmark
return +104.4%
100.0%
NZX 50 Gross
Index +36.3%
50.0%
0.0%
-50.0%
-100.0%
31-Mar-15
31-Jan-15
30-Nov-14
30-Sep-14
31-Jul-14
31-May-14
31-Mar-14
31-Jan-14
30-Nov-13
30-Sep-13
31-Jul-13
31-May-13
31-Mar-13
31-Jan-13
30-Nov-12
30-Sep-12
31-Jul-12
31-May-12
31-Mar-12
31-Jan-12
30-Nov-11
30-Sep-11
31-Jul-11
31-May-11
31-Mar-11
31-Jan-11
30-Nov-10
30-Sep-10
31-Jul-10
31-May-10
31-Mar-10
31-Jan-10
30-Nov-09
30-Sep-09
31-Jul-09
31-May-09
31-Mar-09
31-Jan-09
30-Nov-08
30-Sep-08
31-Jul-08
31-May-08
31-Mar-08
31-Jan-08
30-Nov-07
01-Oct-07
.
............................................................................................................................................................................
Fund Holdings (as at 31 March 2015)
NZ Companies
Fletcher Building
Fisher & Paykel Healthcare
Air New Zealand
Tourism Holdings
a2 Milk Company
Wynyard Group
Orion Health Group
Delegat Group
Auckland International Airport
Restaurant Brands NZ
Steel & Tube
Summerset Group Holdings
Holding
3.28%
3.02%
2.94%
2.12%
1.81%
1.64%
1.60%
1.51%
1.32%
1.21%
1.19%
1.14%
NZ Companies
New Zealand Refining
New Zealand Exchange
Contact Energy
PartsTrader Markets
Vend
Port of Tauranga
Spark New Zealand
Abano Healthcare Group
Holding
0.92%
0.85%
0.70%
0.68%
0.65%
0.65%
0.65%
0.60%
Australian Listed Entities
Slater & Gordon
Cover-More Group
National Storage REIT
Goodman Group
Mirvac Group
Japara Healthcare
Transfield Services
Other NZ & Australian Holdings^
Bonds
Global Equities
Other Unlisted Companies^
Cash
^ Holdings in NZ companies of less than 0.60% and holdings of Australian companies of less than 0.84% have been combined into ‘Other NZ & Australian Holdings’ and ‘Other Unlisted Companies’.
Holding
1.97%
1.46%
0.99%
0.98%
0.97%
0.94%
0.84%
27.51%
4.89%
8.77%
1.83%
20.37%