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Kia Ora

Matapouri, Northland_

About NZ Funds was founded over 30 years ago to manage money for New Zealanders and their families.

Auckland. Sunrise_


HISTORY We are an independent New Zealand company, in ownership and spirit. Originally formed in 1988 as a joint venture between Lion Nathan and ipac Securities, NZ Funds has progressively evolved to being wholly owned by past and present employees. Today, we are one of New Zealand’s larger privately owned wealth management firms. We are focused exclusively on providing wealth management services to New Zealand individuals, families, trusts and charitable entities; we don’t engage in share broking, banking or investment banking so we don’t face the conflicts of interest that can exist in those businesses. NZ Funds has a nationwide team of over 70 outstanding investment, advice, technology, and client service professionals, spread across seven offices throughout New Zealand.

Jonathan Butler, Principal. Wanaka_


PURPOSE Helping New Zealanders make better financial decisions. Every client we serve is unique. But what is common is that every person’s circumstances change over time, and the financial markets in which we invest are not perfectly predictable. Our job is to help our clients navigate that uncertainty and provide an objective basis for making good decisions, no matter what is going on in the world.


PRESENCE Our aim is to serve our clients to the highest standards, wherever they may reside. Five years ago, NZ Funds had one office, in central Auckland. Today, we have offices in Auckland, Wellington, Christchurch, Timaru, Wanaka, Dunedin and Invercargill. We expect our office network to continue to expand, to better serve the growing number of clients we have nationally. We strive to be a productive corporate citizen and to contribute to the economy and communities in which we co-exist with our clients.

Wilhelmina Eveleens, Adviser. Timaru_

Investment team meeting. Auckland_

Leadership It is the shared experience of NZ Funds’ leadership group, of our past successes and of the hard lessons learned.


LEADERSHIP TEAM NZ Funds is led by our Chief Executive, Michael Lang, our Chief Investment Officer, James Grigor and our Chief Operating Officer, Phil Doak. While the current leadership took the helm of the company in 2018, Michael, Phil and James have a combined tenure with NZ Funds of over 42 years. All three are also shareholders in NZ Funds.

Michael Lang, Chief Executive. Auckland_

Our wider leadership includes 15 long-standing senior team members, all of who are also shareholders in NZ Funds. We call these executive shareholders Principals. The average tenure of our Principals with NZ Funds is over 15 years. We aim to provide an environment where talented people can build a purposeful, challenging and rewarding career.


Philip Doak, Chief Operating Officer. Auckland_

EXPERIENCE Our Principals work in all areas of our firm’s activity, giving a breadth of experience and proprietorship which is unmatched in New Zealand. A number of client advisers in our Private Wealth team are Principals of NZ Funds, meaning that our clients are served day-to-day by our most senior and experienced people. It is the shared experience of this leadership group, of our past successes and of the hard lessons learned, that we put to work for our clients’ benefit every day. All of our leadership team are investors in the same portfolios that we manage for our clients, as are many of their family members. We believe this high level of co-investment encourages a close alignment of interests with our clients.


Damon Murfitt, Chief Technology Officer and Jason Dickinson, Head of Wealth Technology. Auckland_

Governance Our Board has a mix of skills and experience that enables us to consider and balance the interests of our clients, our people, our shareholders and our community.

Cambridge, Waikato_


BOARD NZ Funds’ Board is made up of current executives, non-executive shareholders and independent nonexecutive professional directors. Our Board has a mix of skills and experience that enables us to consider and balance the interests of our clients, our people, our shareholders and our community as we build and grow NZ Funds.

Greg Horton, Director. Auckland_


Britomart, Auckland_

REGULATION, OVERSIGHT AND FINANCIAL SECURITY We are actively regulated by the Financial Markets Authority, including periodic monitoring visits to our offices to conduct assurance on various components of our operations. Day-to-day oversight of our management of client monies is overseen by a leading independent trustee, The New Zealand Guardian Trust Company Limited. The regulator and trustee strictly govern the way we hold client money and investments, meaning that your assets are always held separately from those belonging to our firm. All clients’ money is held in pooled, client designated accounts. All client funds are subject to a comprehensive annual independent audit by a leading global audit firm. When we buy and sell investments on behalf of our clients we utilise market-leading banks and custodians globally, conforming to the standards governing institutional financial markets.


LICENSED NZ Funds is a licensed Managed Investment Scheme Manager. We are licensed by the Financial Markets Authority under the Financial Markets Conduct Act. In addition, each adviser in our Private Wealth team is an Authorised Financial Adviser under the Financial Advisers Act. What this means in practice is that both NZ Funds, as a company and each of our advisers, operate within a rigorous legislative and regulatory framework.

Arrowtown, Central Otago_

Pungarehu, Taranaki_

People The most valuable part of our company is our people – our human capital – that is the engine that powers our clients’ investing success.

Team run. Auckland_

People PEOPLE PHILOSOPHY NZ Funds’ most important asset isn’t something you can put your hands on. It isn’t equipment, buildings or physical plant, and it isn’t data, technology, or intellectual property. The most valuable part of our company is our people – our human capital – that is the engine that powers our clients’ investing success. We aspire to provide opportunity for our people to build a career with NZ Funds and to achieve something meaningful. We value colleagues who: - Bring their own individuality and spirit but capture the elusive balance between self-interest and groupinterest; - Are a little competitive and determined to fulfil their highest potential; - Know that hard work is required to achieve and sustain excellence; - Enjoy our business and are optimistic toward life, adding to the collective energy of the team. We are an independent, privately owned company and our team work closely alongside one another. We value unique personalities and the varied perspectives they bring. We encourage respectful candour, challenge and debate in the pursuit of excellence. We are informal and relationships criss-cross our company. We expect an attitude of co-operation and we value those who are uniting forces in our team.

Tracey Munn, Compliance Manager. Auckland_


Amanda Cleaver, Adviser. Wanaka_

LONG TENURE We want our people to be financially prepared for life after their career. We feel a shared responsibility to help them achieve this outcome. We encourage our people to invest alongside our clients. We know that our people will face adversity in their lives. We welcome our responsibility to support each other when adversity strikes. We expect that our company will face commercial adversity from time to time. We especially value those who demonstrate resilience under pressure. Our environment is one where the contribution each individual makes is transparent. We strive to recognise, acknowledge and reward those who make an outstanding contribution and whose behaviours epitomise what we stand for. Our team includes four Chartered Financial Analysts and 24 Authorised Financial Advisers, and we fund and support every member of our team who wishes to complete relevant ongoing study. The average tenure of our full team with NZ Funds is over nine years, and our staff turnover is less than half the national average. Our goal is to build life-long relationships with our clients. We cherish those members of our team who have chosen to work with us and our clients over a long period of time.

Matapouri, Northland_

He tangata, he tangata, he tangata It is the people, it is the people, it is the people

Ethics Our clients deserve the very best performance we can deliver, in all aspects of our service.

Wanaka, Central Otago_

Ethics HONESTY, FAIRNESS, TRANSPARENCY We manage the life savings of tens of thousands of New Zealanders and their families. It is a responsibility we treat with the utmost seriousness. We believe our clients deserve the very best performance we can deliver, in all aspects of our service. Acting honestly and with the highest standards of personal and professional integrity is fundamental to meeting the responsibilities we have to our clients. What we believe in, how we behave and how we work together shapes our culture and the experience our clients enjoy. We have a fiduciary responsibility to our clients and an obligation to act in their interests at all times. Further, we have a responsibility to deal fairly with our suppliers, employees, industry participants and other stakeholders. We seek to hold ourselves accountable to the highest ethical standards and have adopted an internationally recognised code of conduct for asset managers developed by the CFA Institute. NZ Funds has also adopted a Responsible Investment Policy to ensure we invest our clients’ funds in a socially responsible manner. We contract an independent specialist company to provide socially responsible investment research that identifies ‘red flag’ companies and we do not invest in any companies involved in the manufacture of controversial weapons, as prohibited under New Zealand law.

Rangitata Island, South Canterbury_

NZ Funds team. Wealth at Work presentation, Karangahape Road, Auckland_

Services We work with New Zealanders in the process of building wealth and those who have already accumulated wealth.

Damon Murfitt, Chief Technology Officer. Auckland_


PERSONAL FINANCIAL ADVICE Our clients are professional people, business owners, farmers, retirees and those who have inherited wealth. We help trustees to preserve and grow family wealth for current and future generations and for philanthropic purposes. We work with those emigrating to New Zealand, helping them to migrate their pensions and investment portfolios, in a cost and tax efficient manner. Our clients are all different characters with different goals and financial attitudes. But the fundamental questions to which they are seeking answers have common themes: - How much capital do I need to accumulate over my working life? - How much annual spending can my capital realistically provide me, and for how long? - How can we preserve the real value of the portfolio today and sustainably meet our income and/or giving objectives? The answers to these questions are not simple. There are multiple variables to consider. Our role is to help each client define and model those variables until we arrive at a strategy we believe will achieve their goals.

Andy Brown, Adviser, Principal. Auckland_


Cheryl Blanch, Madeleine Lefao – Client Services. Auckland_

WEALTH MANAGEMENT We see wealth management as being the seamless coordination of financial advice and portfolio management. NZ Funds has invested in the development of sophisticated financial modelling software. It enables us to bring to life multiple variables to allow our clients to see the financial impact, today and in the future, of different decision combinations, under different market environments using different investing strategies. Our financial advisers are focused on clients first and foremost. While they work alongside our portfolio managers, we do not believe clientfocused advisers have the time to pick shares, bonds, or fund managers. They are there to help ensure a client’s financial strategy stays up-to-date with their life, that they have a strong understanding of what they own in their portfolio and how it is performing, and that they always have an objective expert by their side.

Stephen McFarlane, Adviser. Timaru_

Investment A clear and experiencetested philosophy, applied in a disciplined manner, is the key to longterm investing success.

James Grigor, Chief Investment Officer. Auckland_


PHILOSOPHY We believe active and passive management have different risk and return characteristics. Consequently, we use both techniques. We place as much emphasis on our experiences, gathered over nearly three decades of wealth management, as we do on academic thinking. In managing clients’ capital, we incorporate into our investment approach, that: - Markets are usually efficient; - Markets are usually biased in one direction or another; - Periods of extreme under and over market valuation occur; - Financial market returns have a lefttail skew; and - Client aversion to losses is real and strong. We believe that long-term returns are primarily determined by asset class and individual security selection. And we see diversification as the most important tool to safeguard against the risk of a permanent loss of capital. We carefully consider environmental, social and governance factors as it is probable they will impact long-term returns.

Investment team meeting. Auckland_


Dave Haslam, Portfolio Manager. Auckland_

PORTFOLIO DESIGN We design client portfolios based around future goals. We construct a client portfolio by understanding their investment objectives and then assembling a diversified mix of assets to meet those objectives. We then alter the portfolio and investment category allocations over time by using age-derived glide paths combined with personalised financial considerations such as income requirements and time horizons. In this way we ensure a client’s portfolio is regularly rebalanced to reflect the cyclical nature of financial markets and their changing circumstances.


PORTFOLIO CONSTRUCTION We construct portfolios using a set of portfolio building blocks, each designed to capture the return of an asset class but also seeking to outperform when markets endure protracted declines. In determining how to best access each asset class, we consider: - diversification by region; - diversification by active and passive management style; - diversification by investment manager. We then complement the core asset class with additional exposure to one or more geographic regions, management styles, investment managers, asset classes or security types, to seek to ensure that each underlying portfolio is more robust in a downturn than the core asset class it tracks. We also believe in complementing each underlying portfolio’s core asset class exposure with the ability to mitigate the downside through either active management or through the use of investment managers capable of profiting during financial market downturns.

Investment research trip. On route to New York_


New York. Sunrise_

GLOBAL CAPABILITY We pride ourselves on the quality of global investment capability we bring to bear in each client’s portfolio. We employ a global network of investment managers. Collectively, the investment managers we work with manage over US$500 billion for some of the world’s largest investors. Every year, our research team travels to the world’s financial centres to meet with investment managers that we currently employ and research those that we believe could add value to our clients’ portfolios. We look to select external investment managers where one or more of the following attributes apply: - The manager is anticipated to generate higher returns than an asset class index; - The manager exposes clients to less risk than an asset class index; - The manager can provide diversification of style or investment approach. The current team of specialist investment managers we employ on behalf of our clients represents a selection of the most respected, successful and venerable professional investors globally.

Michael Lang and David Wilson, Investment Strategist. Manager Research Meetings, New York_

Client Service We are New Zealanders serving New Zealanders.

Sid Singh, Principal. Auckland_

Client Service

ACCESS The issues we help our clients with are critically important to them. Wherever possible, we like to meet face to face. We have offices throughout New Zealand. If a client can’t come to us, we will happily visit them – on the farm, in their office or in their home. Our head office in Auckland is open to all clients, existing and prospective. We welcome the opportunity to introduce our clients to those who oversee their money, day-to-day.

Paul French, Adviser. Wellington_

Client Service

Michael Lang. New York_

TRANSPARENT REPORTING We want our clients to understand what they own in their portfolio. We provide regular reporting customised to individual needs. Our personalised reporting includes a portfolio valuation, a performance report with a breakdown by period and portfolio components, full portfolio cash flow and a comprehensive transaction listing for the period. Every quarter we provide market and portfolio commentary, giving our perspectives on what is going on in the financial world. Every month, we publish on our website full details of the securities held within each of the portfolios we manage. TAX SIMPLICITY A tax year end statement is provided for clients’ tax records, giving full details of all taxable income along with guidance as to how to translate that statement into tax returns. ONLINE ACCESS 24/7 myNZFunds allows clients to securely view their portfolio online whenever they wish, on any device. The service provides online access to clients’ current portfolio valuations, asset allocations and recent transaction records. If a client holds multiple accounts with us, we can aggregate these to provide a comprehensive view of their investments.

Tekapo, Mackenzie Basin_

All photographs in this book were taken by Mark Smith during 2017 – 2019.

mark@marksmith.co.nz www.marksmith.co.nz

Contact AU C K L AN D Level 16 21 Queen Street Auckland 1010 09 377 2277 0508 733 337 info@nzfunds.co.nz




Level 1 46 Deveron Street Invercargill 9810 03 218 2895 nicki.morsink@nzfunds.co.nz

Level 2 Bracken Court 480 Moray Place Dunedin 9016 03 477 4647 peter.ashworth@nzfunds.co.nz

Level 1 2 Sefton Street East Timaru 7910 03 683 1989 stephen.mcfarlane@nzfunds.co.nz




Level 2 Brownston House 21 Brownston Street Wanaka 9305 03 218 2895 nicki.morsink@nzfunds.co.nz

Level 1 203 Papanui Road Merivale Christchurch 8014 03 366 9088 chris.wasley@nzfunds.co.nz

Level 3 Central on Midland Park 40 Johnston Street Wellington 6140 04 830 3911 chris.luey@nzfunds.co.nz


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Profile for NZ Funds

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