Harbour launches Australasian Equity Income Fund
Harbour Asset Management (Harbour) today announced the launch of the new Harbour Australasian Equity Income Fund (Fund).
The Fund has an actively managed strategy that invests predominately in New Zealand and Australian listed securities in order to generate attractive dividend yields.
Harbour’s Managing Director Andrew Bascand said, “Many investors, in the pursuit of real sustainable income, are re-considering their approach to income generation within their personal investment portfolios. Traditionally cash and fixed income investments have provided strong income returns for investors. Now, with many central banks holding interest rates at multi-decade lows, fixed interest yields have fallen sharply. At the same time many equities are offering higher yields.”
The new Harbour Australasian Equity Income Fund can provide a diversified exposure to income assets.
Craig Stent, the Fund’s portfolio manager, says that “New Zealand and Australian dividend yields are attractive relative to cash and bond yields, at a time when investors believe that the New Zealand economy is showing signs of improving. A current diversified portfolio of about 50 equity securities may yield over 6% in the next year, compared with about 4.3% on a 10 year New Zealand government bond, and around 4.2% on a 6 month New Zealand term deposit.”
The Harbour Fund brings together a strong quantitative selection process with a fundamental overlay across Australasia. Each potential investment is first subject to a number of ‘tests’ including dividend and cash flow yields, and relative valuation criteria.
Craig Stent expects the portfolio to generally hold 40-60 securities. “The portfolio will be more diversified than typical equity portfolios, which reflects our intention to provide a more consistent yield for investors. We intend to pay distributions on a quarterly basis, and we have the capacity to invest up to 35% in cash, and government and corporate bonds using Harbour’s fixed interest team.”
Andrew Bascand said, “The Fund is predominantly equity-based, therefore total returns may be volatile. This Fund has been launched to suit the needs of investors with a longer term horizon and who are seeking regular income with the potential for capital growth. The Fund’s fees are very competitive, and no performance or entry and exit fees apply.”
In just over 18 months, Harbour has built a very well-resourced professional asset management operation with around $900 million under management in New Zealand fixed interest and Australasian equities, across a broad range of clients, including Crown entities, listed and unlisted major companies, multi-nationals, charitable trusts and KiwiSaver providers.
ENDS
About Harbour
Harbour is a New Zealand-based asset manager with extensive professional investment experience managing funds for large government institutions, corporate superannuation funds, multi-nationals, charities and mezzanine platform providers (such as KiwiSaver funds).
Established in January 2010 with capital and infrastructure provided by First NZ Capital, the Harbour team previously worked together for up to 10 years as the NZ Equity team at a large global investment manager. With the launch of Harbour, the Harbour Australasian Equity Fund was formed and funded in April 2010. In January 2011 Harbour established a New Zealand Fixed Interest team and took over the management of the Harbour NZ Corporate Bond Fund. In May 2011 Harbour launched the Harbour NZ Core Fixed Interest Fund.
The Harbour team comprises: Andrew Bascand, Craig Stent, Kevin Bennett, Darryl Briggs, Mark Brown, Christian Hawkesby, Jody Kaye, Kate Pickering, Oyvinn Rimer and Anne-Marie Carian. The Directors of Harbour are Graeme Wong (independent chairman), Wayne Stechman (independent director and head of audit committee), Bill Trotter, Andrew Bascand and Richard Bodman.
