Harbour NZ Core Fixed Interest Fund

Transcription

1 Harbour NZ Core Fixed Interest Fund MONTHLY FUND FACT SHEET Information as at 31 August 2018 Fund Description The Fund is an actively managed investment grade bond fund that invests mainly in New Zealand Government and corporate bond fixed interest securities. Benchmark 50:50 weighted average of S&P/NZX Govt Bond Index and S&P/NZX A-Grade Corporate Bond Total Index. Fund Objective The investment objective of the Fund is to outperform the benchmark by 100 basis points per annum over a rolling three year period. Fund Update Bond yields continued to fall during August, bringing solid capital gains and another month of strong outright performance. Yields are approaching all-time lows in New Zealand and we have been wary about the scope for yields to keep falling. As a consequence, we were defensively positioned and underperformed the Fund s benchmark. Click here for the Harbour Market Commentary for this month. Performance 1 mth 3 mth 1 yr 2 yr 3 yr 5 yr Since inception (annualised) * Benchmark return 0.94% 1.63% 4.91% 3.56% 4.78% 5.64% 5.60% 1.13% 2.01% 4.88% 3.09% 4.18% 5.33% 5.24% (after deductions for charges, before tax)** 0.89% 1.46% 4.23% 2.89% 4.05% 4.87% 4.85% * for NZ Core Fixed Interest Fund- wholesale in which this retail Fund invests. Inception: May ** for the NZ Core Fixed Interest Fund- retail. $15,000 Growth of $10,000 invested in Fund since inception (after deductions for charges, before tax) $14,000 $13,000 $12,000 $11,000 $10,000 If you had invested $10,000 in this Fund at inception, as at 31 Aug 2018 it would be worth: $ 14,111 after all fund charges but before tax. Harbour NZ Core Fixed Interest Fund

2 Credit Sectors 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Top 10 Issuer Exposures New Zealand Government New Zealand Local Government Westpac Banking Corp ANZ Bank New Zealand Fonterra Co-operative Group Kiwibank ASB Bank Bank of New Zealand Kommunalbanken AS Rabobank UA/New Zealand % Portfolio 45.7% 7.2% 4.7% 4.1% 2.8% 2.5% 2.5% 2.2% 2.2% 2.0% Ratings Key Information 27% 14% Risk Profile 5% 1% 7% 46% AAA AA Govt AA Other (and A- 1+) A (and A-1) BBB (and A-2) This Fund has a risk rating of 2, based on returns data from the 5 years to 31 August For more information on the risks associated with this Fund, please see our Product Disclosure Statement (PDS). BB Unit Price Unit Pricing Daily Fund Size (GAV) $155,420,568 Fund Inception Date 24 May 2011 Estimated Total Fund charge: Performance fee Entry/exit fees Distribution frequency Investment Team for this Fund 0.63%pa Quarterly Last distribution CPU 0.76 Portfolio Yield 2.29% Portfolio Duration 3.86 Immigrant Investor Category 2 % eligibility 92.9% Mark Brown Director, Fixed Income Portfolio Manager Christian Hawkesby Executive Director, Head of Fixed Income & Economics Simon Pannett Director, Research Analyst Disclaimer: This Fund Fact Sheet is provided in good faith for general information purposes only. Information has been prepared from published information and sources believed to be reliable and accurate at the time of publication, but this is not guaranteed. Please refer to the full disclaimer on last page of this document or go to for more information. Full disclaimer for use of the S&P/NZX Index data can also be found on this site. Harbour NZ Core Fixed Interest Fund

3 Harbour NZ Corporate Bond Fund MONTHLY FUND FACT SHEET Information as at 31 August 2018 Fund Description The Fund provides access to favourable income yields through a diversified portfolio of primarily investment grade corporate bond fixed interest securities. Benchmark S&P/NZX A-Grade Corporate Bond Total Index. Fund Update Bond yields continued to fall during August, bringing solid capital gains and another month of strong outright performance. Yields are approaching all-time lows in New Zealand and we have been wary about the scope for yields to keep falling. As a consequence, we were defensively positioned and underperformed the Fund s benchmark. Fund Objective The investment objective of the Fund is to exceed the return of the benchmark portfolio after fees on a rolling 12 month basis. Click here for the Harbour Market Commentary for this month. Performance 1 mth 3 mth 1 yr 2 yr 3 yr 5 yr Since inception (annualised) Benchmark return (after deductions for charges, before tax) 0.87% 1.62% 4.72% 3.85% 4.52% 5.43% 6.00% 0.97% 1.69% 4.68% 3.64% 4.39% 5.46% 5.93% 0.81% 1.45% 4.05% 3.19% 3.85% 4.76% 5.33% Inception: February 2009 $17,000 $16,000 $15,000 $14,000 $13,000 $12,000 $11,000 $10,000 Growth of $10,000 invested in Fund since inception (after deductions for charges, before tax) If you had invested $10,000 in this Fund at inception, as at 31 Aug 2018 it would be worth: $ 16,418 NZ Corporate Bond Fund

4 Credit Sectors 35% 30% 25% 20% 15% 10% 5% 0% after all fund charges but before tax. Top 10 Issuer Exposures New Zealand Local Government Dunedin City Treasury Ltd Bank of New Zealand ASB Bank Fonterra Co-operative Group ANZ Bank New Zealand Westpac Banking Corp Toyota Finance New Zealand Ltd Rabobank UA/New Zealand Auckland City Council % Portfolio 13.9% 5.4% 5.1% 4.7% 4.5% 4.5% 4.5% 3.2% 3.0% 2.8% Ratings Key Information 10% 0% 2% 13% 1% AAA AA Govt Unit Price Unit Pricing Fund Size (GAV) Daily $366,126,857 20% AA Other (and A- 1+) A (and A-1) Fund Inception Date 16 February 2009 Estimated Total Fund charge: Performance fee Entry/exit fees 0.63%pa BBB (and A-2) Distribution frequency Quarterly 54% BB NR Last distribution CPU Portfolio Yield Portfolio Duration Immigrant Investor Category 2 % eligibility % % Risk Profile This Fund has a risk rating of 2, based on returns data from the 5 years to 31 August For more information on the risks associated with this Fund, please see our Product Disclosure Statement (PDS). Investment Team for this Fund Mark Brown Director, Fixed Income Portfolio Manager Christian Hawkesby Executive Director, Head of Fixed Income & Economics Simon Pannett Director, Research Analyst Disclaimer: This Fund Fact Sheet is provided in good faith for general information purposes only. Information has been prepared from published information and sources believed to be reliable and accurate at the time of publication, but this is not guaranteed. Please refer to the full disclaimer on last page of this document or go to for more information. Full disclaimer for use of the S&P/NZX Index data can also be found on this site. NZ Corporate Bond Fund

5 Harbour Income Fund MONTHLY FUND FACT SHEET Information as at 31 August 2018 Fund Description The Fund is designed to give a favourable level of income. The Fund invests predominantly in New Zealand investment grade fixed interest securities and Australasian equities which pay a sustainable dividend yield. Other tools, such as active management and scope to invest in sub investment grade securities may also be used to enhance returns. Fund Benchmark 68% S&P/NZX A Grade Corporate Bond Total Index; 16% S&P/ASX200 Industrials Index (100% hedged to NZ dollars); and 16% S&P/NZX Portfolio Index. Performance Fund Objective The investment objective of the Fund is to exceed the Official Cash Rate (OCR) plus 3.5% pa over rolling three year periods. Fund Update Investment performance was very strong in August, especially considering the Fund s investment mix, which is predominantly income generating assets. s from equities, fixed income and currency positions were all positive. There were minor negative impacts from investment in inflation-indexed bonds. Click here for the Harbour Market Commentary for this month. 1 mth 3 mth 1 yr 2 yr 3 yr 5 yr Since inception (annualised) Benchmark return (after deductions for charges, before tax) 1.23% 2.80% 6.75% 3.69% na na 6.14% 1.66% 3.42% 8.50% 4.41% na na 7.71% 1.18% 2.62% 5.94% 4.44% na na 5.30% Inception: 28 October $11,750 $11,500 $11,250 $11,000 $10,750 $10,500 $10,250 $10,000 Growth of $10,000 invested in Fund since inception (after deductions for charges, before tax) If you had invested $10,000 in this Fund at inception, as at 31 Aug 2018 it would be worth: after all fund charges but before tax. $ 11,582 Harbour Income Fund

6 Yield Top 10 Issuer Exposures % Portfolio INCOME FUND COMBINED RUNNING YIELD (including imputation credits) Running Yield on Corporate Bonds S&P Corporate A Grade Index Running Yield 12m Fwd Dividend Yield on Australasian Equities (including imputation credits) 12m Fwd Dividend Yield on Australasian Equities (excluding imputation credits) NZX 50 Index 12m Fwd Dividend (including imputation credits) NZ 6 Month Term Deposit Rate* 3.49% New Zealand Government Cash 10.7% 8.2% 2.72% Harbour Australasia Eq Focus Wsale PIE 6.1% 2.61% Westpac Banking Corp 5.6% NAB Low Carbon Shared Portfolio 4.4% 4.91% Realm Capital Series Fund ANZ Bank New Zealand 2.9% 2.7% 4.40% Contact Energy Limited 2.5% Genesis Energy Ltd 2.5% 4.90% Precinct Properties New Zealand Limited 2.4% 3.25% Actual Investment Mix Key Information 8.3% Risk Profile 10.8% 52.5% Australasian Equities International Equities International fixed interest 28.4% NZ Fixed Interest Cash & cash equivalents This Fund has a risk rating of 3, based on returns data from the 5 years to 31 August For more information on the risks associated with this Fund, please see our Product Disclosure Statement (PDS). Performance fee Entry/exit fees Distribution frequency Investment Team for this Fund Unit Price Unit Pricing Fund Size (GAV) $75,663,840 Fund Inception Date 28 October 2015 Currency Estimated Total Fund charge: Daily NZD 0.63%pa Quarterly Last distribution CPU 1.25 Mark Brown Director, Fixed Income Portfolio Manager Craig Stent Executive Director,Head of Equities Simon Pannett Director, Research Analyst Disclaimer: This Fund Fact Sheet is provided in good faith for general information purposes only. Information has been prepared from published information and sources believed to be reliable and accurate at the time of publication, but this is not guaranteed. Please refer to the full disclaimer on last page of this document or go to for more information. Full disclaimer for use of the S&P/NZX Index data can also be found on this site. Harbour Income Fund

7 Harbour NZ Equity Advanced Beta Fund MONTHLY FUND FACT SHEET Information as at 31 August 2018 Fund Description The Fund provides exposure to New Zealand equities. The Fund is designed to track the market index with some quantitative tilting to selected companies. 70% of the Fund mirrors the market index with the remaining 30% of the Fund tilted towards those companies in the index that score well on our financial models for value, yield & growth. Benchmark S&P/NZX 50 Portfolio Index. Fund Objective The investment objective of the Fund is to outperform the benchmark. Performance Fund Update The NZ Advanced Beta fund had a positive return but underperformed it s benchmark over August. The Growth strategy outperformed the market, while Yield and Value strategies lagged. Large-cap stocks displayed stronger performance than their mid-cap counterparts. The portfolio s overweight positioning versus it s benchmark in underperformer Sky Television and underweight positions in strong performers F&P Healthcare, Ryman and a2 Milk detracted from performance. This was somewhat balanced by overweight positions in strong performers in Synlait and Kathmandu relative to the benchmark. Click here for the Harbour Market Commentary for this month. 1 mth 3 mth 1 yr 2 yr 3 yr 5 yr Since inception (annualised) Benchmark return 2.96% 6.93% 18.94% 13.38% 18.89% na 16.12% 3.37% 6.25% 19.59% 13.84% 19.51% na 16.32% (after deductions for charges, before tax) 2.91% 6.79% 18.32% 12.75% 18.21% na 15.45% Inception: December $17,000 Growth of $10,000 invested in Fund since inception (after deductions for charges, before tax) $16,000 $15,000 $14,000 $13,000 $12,000 $11,000 $10,000 If you had invested $10,000 in this Fund at inception, as at 31 Aug 2018 it would be worth: $ 17,130 after all fund charges but before tax. Harbour NZ Equity Advanced Beta Fund

8 Absolute Sector Weights % Top 10 Holdings % Portfolio Utilities Health Care Industrials Consumer Discretionary Real estate Consumer Staples Telecommunication Services Financials Energy Materials Cash Information Technology Spark New Zealand A2 Milk Meridian Energy Ryman Healthcare Contact Energy Summerset Group Holdings Fisher & Paykel Healthcare Mainfreight Z Energy Auckland Intl Airport 4.81% 4.80% 4.49% 3.93% 3.84% 3.84% 3.82% 3.69% 3.56% 3.53% Actual Investment Mix 2.20% 97.80% NZD Equities Cash & Cash Equivalents Key Information Unit Price Unit Pricing Daily Fund Size (GAV) $162,261,870 Fund Inception Date 3 December 2014 Currency Estimated Total Fund charge: NZD 0.54%pa Performance fee Entry/exit fees Distribution frequency Not for this Fund Risk Profile This Fund has a risk rating of 4, based on returns data from the 5 years to 31 August For more information on the risks associated with this Fund, please see our Product Disclosure Statement (PDS). Investment Team for this Fund Susanna Lee Director, Portfolio Manager Andrew Bascand Managing Director Craig Stent Executive Director, Head of Equities Disclaimer: This Fund Fact Sheet is provided in good faith for general information purposes only. Information has been prepared from published information and sources believed to be reliable and accurate at the time of publication, but this is not guaranteed. Please refer to the full disclaimer on last page of this document or go to for more information. Full disclaimer for use of the S&P/NZX Index data can also be found on this site. Harbour NZ Equity Advanced Beta Fund

9 Harbour Australasian Equity Income Fund MONTHLY FUND FACT SHEET Information as at 31 August 2018 Fund Description The Fund is designed to generate quarterly income from a diversified portfolio of Australasian listed equities that pay sustainable and growing dividend yields (the amount a company pays out in dividends each year relative to its share price) as well as holding cash and fixed interest securities. Benchmark 60% S&P/ASX Industrials Index (equally weighted and 90% hedged to NZD) and 40% S&P/NZX Portfolio Index. Fund Update Portfolio performance was ahead of its benchmark in August. Despite the soft reporting season, NZ market returns were strong. Strong results from Mirvac Group and Charter Hall made them key portfolio outperformers. Australian financials Challenger and Janus Henderson detracted from performance. Click here for the Harbour Market Commentary for this month. Fund Objective The investment objective of the Fund is to generate a higher yield than the New Zealand and Australian markets. Performance 1 mth 3 mth 1 yr 2 yr 3 yr 5 yr Since inception (annualised) * Benchmark return 1.31% 5.23% 10.28% 7.78% 10.99% 13.64% 16.00% 1.11% 4.31% 16.44% 12.30% 16.06% 13.93% 15.96% (after deductions for charges, before tax)** 1.22% 4.93% 9.09% 6.59% 9.75% 12.37% 14.26% * Gross for the Australasian Equity Income Fund wholesale, in which this retail Fund invests. Inception: November ** for the Australasian Equity Income Fund retail. $26,000 $24,000 $22,000 $20,000 $18,000 $16,000 $14,000 $12,000 $10,000 $8,000 Growth of $10,000 invested in Fund since inception (after deductions for charges, before tax) If you had invested $10,000 in this Fund at inception, as at 31 Aug 2018 it would be worth: after all fund charges but before tax. $ 24,870 Harbour Australasian Equity Income Fund

10 Absolute Sector Weights % Top 10 Holdings % Portfolio Property Cash Utilities Financials Industrials Consumer Discretionary Telecommunication Services Materials Energy Meridian Energy Contact Energy Spark New Zealand Kathmandu Holdings Mainfreight National Australia Bank Vital Healthcare Property Precinct Properties NZ Restaurant Brands NZ Goodman Property Trust 4.52% 4.39% 4.12% 3.75% 3.68% 3.56% 3.13% 3.10% 3.10% 3.04% Security Type Key Information 35.62% 16.49% 47.89% NZD Equities AUD Equities Cash & Cash Equivalents Unit Price Unit Pricing Daily Fund Size (GAV) $37,849,520 Fund Inception Date 1 November 2011 Currency NZD Estimated Total Fund charge: 1.05%pa Performance fee Entry/exit fees Distribution frequency Quarterly Last distribution CPU 1.88 Risk Profile This Fund has a risk rating of 4, based on returns data from the 5 years to 31 August For more information on the risks associated with this Fund, please see our Product Disclosure Statement (PDS). Investment Team for this Fund Craig Stent Executive Director Head of Equities Shane Solly Director, Portolio Manager Andrew Bascand Managing Director Disclaimer: This Fund Fact Sheet is provided in good faith for general information purposes only. Information has been prepared from published information and sources believed to be reliable and accurate at the time of publication, but this is not guaranteed. Please refer to the full disclaimer on last page of this document or go to for more information. Full disclaimer for use of the S&P/NZX Index data can also be found on this site. Harbour Australasian Equity Income Fund

11 Harbour Australasian Equity Fund MONTHLY FUND FACT SHEET Information as at 31 August 2018 Fund Description The Fund provides actively managed exposure to New Zealand and Australian listed equities. This Fund has a growth-oriented investment approach to generate alpha (return over the benchmark) for investors. Benchmark S&P/NZX 50 Index including imputation credits. Fund Objective The investment objective of the Fund is to achieve a gross return of 5.0% per annum above the benchmark over the long term. Performance Fund Update Portfolio performance was behind its benchmark in August. Despite the soft reporting season, NZ market returns were strong. Strong results from a2 Milk and CSL made them key portfolio outperformers, whilst global index demand for large caps such as Ryman and Fisher & Paykel Healthcare, in which we are underweight, provided a headwind. Australian financials Challenger and Janus Henderson detracted from performance and underweight positions in Trademe and Synlait Milk, which outperformed the market, also impacted relative performance. Click here for the Harbour Market Commentary for this month. 1 mth 3 mth 1 yr 2 yr 3 yr 5 yr Since inception (annualised) * Benchmark return 4.17% 8.61% 25.11% 20.00% 23.05% 19.34% 16.38% 4.47% 7.75% 20.53% 13.61% 19.54% 16.92% 14.69% (after deductions for charges, before tax)** 4.07% 8.31% 23.74% 18.67% 21.66% 17.90% 14.73% * Gross for the Australasian Equity Fund wholesale, in which this retail Fund invests. Inception: April ** for the Australasian Equity Fund retail. $35,000 $32,500 $30,000 $27,500 $25,000 $22,500 $20,000 $17,500 $15,000 $12,500 $10,000 $7,500 Growth of $10,000 invested in Fund since inception (after deductions for charges, before tax) If you had invested $10,000 in this Fund at inception, as at 31 Aug 2018 it would be worth: after all fund charges but before tax. $ 31,691 Australasian Equity Fund

12 Absolute Sector Weights % Top 10 Holdings % Portfolio Health Care Consumer Staples Industrials Financials Utilities Consumer Discretionary Telecommunication Services Information Technology Materials Cash A2 Milk Spark New Zealand Mainfreight Contact Energy Fisher & Paykel Healthcare Auckland Intl Airport Summerset Group Holdings Fletcher Building Meridian Energy CSL 14.07% 6.66% 6.18% 4.86% 4.51% 4.41% 4.29% 3.86% 3.62% 3.37% Security Type Key Information 21.38% 5.64% 72.98% NZD Equities AUD Equities Cash Unit Price Unit Pricing Daily Fund Size (GAV) $264,256,276 Fund Inception Date 11 April 2010 Currency NZD Estimated Total Fund charge: 1.10%pa Performance fee Yes Entry/exit fees Distribution frequency Not for this fund Risk Profile This Fund has a risk rating of 4, based on returns data from the 5 years to 31 August For more information on the risks associated with this Fund, please see our Product Disclosure Statement (PDS). Investment Team for this Fund Andrew Bascand Managing Director Shane Solly Director, Portolio Manager Craig Stent Executive Director, Head of Equities Disclaimer: This Fund Fact Sheet is provided in good faith for general information purposes only. Information has been prepared from published information and sources believed to be reliable and accurate at the time of publication, but this is not guaranteed. Please refer to the full disclaimer on last page of this document or go to for more information. Full disclaimer for use of the S&P/NZX Index data can also be found on this site. Australasian Equity Fund

13 Harbour Australasian Equity Focus Fund MONTHLY FUND FACT SHEET Information as at 31 August 2018 Fund Description The Fund is an actively managed fund investing in New Zealand and Australian listed equities. It is a high conviction fund where the portfolio will consist of companies our analysts have researched and have a high belief will perform over the medium to longer-term. A higher rated company will have a higher weighting in the portfolio. Fund Update The portfolio outperformed its benchmark in August. Despite a soft profit reporting season, NZ market returns were strong. Strong results from a2 Milk, CSL and Xero boosted portfolio performance. Negative returns from investments in Australian financials Challenger and Janus Henderson, and radio traffic advertiser GTN detracted from overall portfolio performance. Benchmark 50% S&P/NZX 50 and a 50% S&P/ASX 200 Index (which is 50% hedged into NZ dollars). Fund Objective The investment objective of the Fund is to deliver medium to long term capital growth through investing in quality businesses with strong growth prospects. Click here for the Harbour Market Commentary for this month. Performance 1 mth 3 mth 1 yr 2 yr 3 yr 5 yr Since inception (annualised) * Benchmark return 4.26% 9.56% 31.22% 24.95% 24.63% na 18.26% 2.90% 7.27% 17.60% 14.01% 15.42% na 12.40% (after deductions for charges, before tax)** 4.02% 9.01% 28.32% 22.74% 22.37% na 16.20% * Gross for the Australasian Equity Focus Fund wholesale, in which this retail Fund invests. Inception: March ** for the Australasian Equity Focus Fund retail. $19,000 $18,000 $17,000 $16,000 $15,000 $14,000 $13,000 $12,000 $11,000 $10,000 $9,000 Growth of $10,000 invested in Fund since inception (after deductions for charges, before tax) If you had invested $10,000 in this Fund at inception, as at 31 Aug 2018 it would be worth: after all fund charges but before tax. $ 19,348 Harbour Australasian Equity Focus Fund

14 Absolute Sector Weights % Top 10 Holdings % Portfolio Health Care Consumer Staples Financials Information Technology Consumer Discretionary Industrials Materials Cash Property Energy A2 Milk CSL Mainfreight Macquarie Group Summerset Group Holdings Challenger Vista Group International Scales Corp Janus Henderson Group Kathmandu Holdings 14.39% 9.92% 7.15% 6.32% 5.93% 4.93% 4.89% 4.17% 3.96% 3.66% Security Type Key Information 39.54% 5.73% 54.73% NZD Equities AUD Equities Cash & Cash Equivalents Unit Price Unit Pricing Daily Fund Size $21,309,903 Fund Inception Date 10 April 2014 Currency NZD Estimated Total Fund charge: 1.26%pa Performance fee Yes Entry/exit fees Distribution frequency Not for this fund Risk Profile This Fund has a risk rating of, based on returns data from the 5 years to 31 August For more information on the risks associated with this Fund, please see our Product Disclosure Statement (PDS). Investment Team for this Fund Andrew Bascand Managing Director Shane Solly Director, Portolio Manager Craig Stent Executive Director, Head of Equities Disclaimer: This Fund Fact Sheet is provided in good faith for general information purposes only. Information has been prepared from published information and sources believed to be reliable and accurate at the time of publication, but this is not guaranteed. Please refer to the full disclaimer on last page of this document or go to for more information. Full disclaimer for use of the S&P/NZX Index data can also be found on this site. Harbour Australasian Equity Focus Fund

15 T. Rowe Price Global Equity Growth Fund MONTHLY FUND FACT SHEET Information as at 31 August 2018 Fund Description The Fund invests in a broadly diversified portfolio of global equities, typically comprising around 130 stocks. Fund Benchmark Fund Objective To provide long-term capital appreciation by investing primarily in a portfolio of securities of companies which are traded, listed or due to be listed, on recognised exchanges and/or markets throughout the world. MSCI All Country World Index (unhedged). Performance 1 mth 3 mth 1 yr 2 yr 3 yr 5 yr Since inception (annualised) * Benchmark return 3.71% 8.28% 27.76% 25.51% na na 16.99% 3.41% 9.20% 20.26% 19.03% na na 11.85% (after deductions for charges, before tax)** Inception: 21 October % 7.93% 26.16% 23.96% na na 15.55% Market Review In New Zealand dollar terms, global equities rose in August. While concerns about slowing growth in Europe and emerging markets mostly offset positive economic data in the U.S., a weakening New Zealand dollar versus other major currencies helped boost returns for local investors. U.S. stocks posted solid gains in August. Positive economic data helped the market edge higher early in the month, and a generally strong second-quarter earnings season also provided a boost. Trade relations between the U.S., China and others once again dominated sentiment. Developed European shares were hit hard in August in local currency terms, although a weaker New Zealand dollar helped mitigate much of the negative results in the region for NZ investors. Italian shares were among the worst performers, as Italian economic concerns have been a common theme since the new populist coalition came to power in June. Shares in Austria and Spain also struggled during the month. Finland proved to be a bright spot with solid returns. Developed Asian markets were positive despite escalating U.S.-China trade tensions being at the forefront in the region. Japanese shares rose, but stocks in Hong Kong and Australia produced more muted returns. Emerging markets underperformed developed markets. Turkish shares plunged as the lira routinely hit all-time lows. In addition to Turkey's well-documented economic issues, political issues also weighed on stocks throughout the month. There were a few bright spots in emerging Europe, as Poland and Hungary gained ground. In emerging Asia, Chinese stocks fell, while stocks in Thailand and the Philippines rose. Latin American shares were hammered, with all countries posting negative returns. Mexican stocks held up best, thanks in part to a revised North American Free Trade Agreement (NAFTA) deal with the U.S. at the end of the month but shares still retreated. Brazilian markets posted steep losses. Sector performance in the MSCI All Country World Index was mostly positive. Information technology, health care, and consumer discretionary were the strongest performers, while energy was the only sector to produce negative results. T. Rowe Price Global Equity Growth Fund

16 Fund Review The Fund performed in line with the MSCI All Country World Index for the one-month period ended August 31, T. Rowe Price s position in Amazon.com was the largest relative contributor for the month. Investors continued to drive the stock higher as the company coasted on incredibly strong second-quarter earnings results released at the end of July. Strong performance across the consumer discretionary sector also helped propel the stock higher. T. Rowe Price has high conviction in Amazon.com given its dominant brand, superior technology, and highly profitable cloud computing business. Along with Amazon.com, their positions in Netflix and Tesla helped the consumer discretionary sector contribute the most to relative returns over the period. Conversely, stock selection in financials detracted the most from relative returns, especially their positions in Indian banks Yes Bank and HDFC Bank. T. Rowe Outlook T. Rowe Price is more cautious on equity markets as they head into the second half of the year. The first half of the year brought a multitude of mixed economic and political data points, often in rapid succession. The positive benefits from the U.S. corporate tax cuts, repatriation of dollars and buybacks have largely come through in corporate earnings. The structural winners, like many of the names they own, continue to gain at a pace that has been somewhat surprising given the size and scale of many of the companies. However, T. Rowe Price thinks the risks are higher now given rising near-term macro and geopolitical uncertainties. Sector Diversification % Top 10 Holdings Country Information Technology Financials Consumer Discretionary Health Care Industrials & Business Services Consumer Staples Energy Real Estate Materials Utilities Telecommunication Services #N/A 0% 5% 10% 15% 20% 25% 30% Alibaba Group Holding Alphabet Altaba Amazon.com Apple Facebook JPMorgan Chase SM Investments Tencent Holdings Tesla China United States United States United States United States United States United States Philippines China United States Geographical Diversification (Top 10) Key Information 3.8% 5.9% 3.4% 7.8% 2.8% 2.5% 2.1% 2.1% United States China 3.1% India Japan United Kingdom Philippines Canada Indonesia Unit Price Unit Pricing Daily Fund Size (GAV) $44,106,235 Fund Inception Date 21 October 2015 Estimated Total Fund charge: 1.22%pa Performance fee No Entry/exit fees Distribution frequency Not for this Fund 49.1% Germany Peru Risk Profile This Fund has a risk rating of 5, based on returns data from the 5 years to 31 August For more information on the risks associated with this Fund, please see our Product Disclosure Statement (PDS). T. Rowe Price Global Equity Growth Fund

17 Investment Team for this Fund Andrew Bascand Managing Director & Portfolio Manager Simon Pannett Investment Analyst Disclaimer: This Fund Fact Sheet is provided in good faith for general information purposes only. Information has been prepared from published information and sources believed to be reliable and accurate at the time of publication, but this is not guaranteed. Please refer to the full disclaimer on last page of this document or go to for more information. Full disclaimer for use of the S&P/NZX Index data can also be found on this site. T. Rowe Price Disclaimer: T. ROWE PRICE, INVEST WITH CONFIDENCE and the Bighorn Sheep design are, collectively and/or apart, trademarks or registered trademarks of T. Rowe Price Group, Inc. in the United States, European Union, and other countries. This material is intended for use only in select countries. T. Rowe Price is not the issuer of this document nor authorized the issue thereof. T. Rowe Price takes no responsibility for the content herein, including but not limited to accuracy, timeliness and/or completeness. Accordingly, T. Rowe Price will not be liable or responsible to you or any other parties for any and all liabilities arising directly or indirectly from the use and/or reliance of this document. T. Rowe Price Global Equity Growth Fund

18 Disclaimer: These Fund Fact Sheets have been provided in good faith for general information purposes only. Information has been prepared from published information and sources believed to be reliable and accurate at the time of publication, but this is not guaranteed. The information, including any analysis, opinions or views contained herein reflects a judgement at the date of publication and is subject to change without notice. The information and any analysis, opinions or views made or referred to do not constitute specific advice (whether of an investment, legal, tax, accounting or other nature) or a recommendation to any person and may not be suitable for all investors. The information, analysis, opinions and views do not take into account any person s financial situation or goals and do not constitute personalised advice for the purposes of the Financial Advisers Act Investment in the Harbour Investment Funds can only be made using the Product Disclosure Statement (PDS), to be read carefully before any investment decision is made. Past performance is not indicative of future results, no representations or warranty, expressed or implied, is made regarding future performance. To the maximum extent permitted by law, no liability or responsibility is accepted for any loss or damage, direct or consequential, arising from or in connection with these Fact Sheets or the contents in them. S&P Dow Jones Indices Disclaimer The S&P NZX50 Index ( Index ) is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by Harbour Asset Management. 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 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. T. Rowe Price Disclaimer T. ROWE PRICE, INVEST WITH CONFIDENCE and the Bighorn Sheep design are, collectively and/or apart, trademarks or registered trademarks of T. Rowe Price Group, Inc. in the United States, European Union, and other countries. This material is intended for use only in select countries. T. Rowe Price is not the issuer of this document nor authorized the issue thereof. T. Rowe Price takes no responsibility for the content herein, including but not limited to accuracy, timeliness and/or completeness. Accordingly, T. Rowe Price will not be liable or responsible to you or any other parties for any and all liabilities arising directly or indirectly from the use and/or reliance of this document.