Finding the best low risk income generating opportunities around the world
The Fisher Funds High Income Fund is focussed on protecting your capital and aims to provide investors with a high and stable level of income with modest capital growth. The Fund gives New Zealand investor’s access to a diverse and high quality portfolio of fixed interest securities that, like all Fisher Funds investments, have been hand picked.
The High Income Fund can invest anywhere around the world, and our portfolio manager, David McLeish, will leverage his ten years experience and extensive international network to find investment opportunities intended to provide you with above-average income while preserving your capital.
Our High Income Fund aims to provide New Zealand investors with a unique mix of the benefits that come from investing offshore: improved diversification, liquidity, and locally based but globally experienced investment expertise. We believe the High Income Fund marks a new high point in fixed interest fund management in New Zealand.
Investors are given the option of either receiving the income generated by the Fund in regular monthly instalments or reinvesting that money. It is for this reason the Fund is suited to both those seeking a stable income from their investment and those who want compounded income over time.
Investors who have little or no capital invested in fixed interest may also benefit from the diversification an investment in the High Income Fund will provide.
The Fund is especially appropriate for those who like the idea of having professional investors actively manage their fixed interest investments for them.
Our Fund Fact sheet also provides a great snapshot of the Fund.
Talk to one of our Client Services Managers by calling 0508 FISHER.
The High Income Fund is actively managed. Our hands-on investment approach ensures that all each investment meets our strict investment criteria.
Simply put, we believe the safety of fixed interest investments can be measured by the ability of a borrower to meet all of its future obligations. This ability should be measured in good times and bad so that we can have a reasonable level of certainty as to a future repayment.
A thorough and structured investment approach is key to achieving our goals
As discussed in more detail in ‘Our Investment Approach’ below, we combine macro and microeconomic analysis in our selection process. Essentially this means we take account of both economic and country risks as well as the risks, and potential rewards of individual securities. By standardising the way we make our investment decisions we aim to produce consistency and accountability over a long period of time.
Risk management is paramount
A set of strict parameters shape the composition of the
Fund at all times. However, we don’t stop there. We complement this set
of rules with advanced risk analysis that helps us understand and plan
for all kinds of possible market events. We believe this helps us
prepare for the worst.
A global reach will bear fruit
Investing globally has many advantages. Today’s increasingly connected world offers a wealth of opportunities, but finding them takes time, effort and expertise that many investors simply do not have. The Fund gives investors access to the debt securities of companies and governments in both developed and emerging market countries, thereby capturing investment opportunities that a solely New Zealand-focused investor might miss.
Our Investment Approach
We take our responsibility in investing your money seriously. We demonstrate this best through the process we have in place to ensure we make well-informed and thorough investment decisions. This selection process works by approaching our investment analysis from two directions.
Get the big picture right first
This first step involves forming a detailed view on the global financial outlook. Here we aim to identify the countries, sectors, and financial markets we think will flourish in the future. As part of this process we utilise a large number of analytical tools. These include forward-looking economic indicators, industry publications, rating agency reports, and economic forecasting. We also factor in our political and geo-political views for each region. This step is designed to highlight the markets where our investments have the best chance of success.
Then comes the detailed analysis of potential investments When analysing the risks associated with a particular investment we look at information and data in a wide range of areas. Of particular interest to us is a borrower’s solvency (ability to meet long-term obligations), liquidity (ability to meet short-term obligations), and overall profitability. It is within these areas of interest that we have developed a set of measures that form the basis for our final investment decision. This process also allows us to compare one borrower with another, helping us select what we believe to be the optimal return for our desired level of risk.
Putting the pieces together The final step in our selection process is deciding on the best combination of securities to implement our views. This involves overlaying our list of favoured borrowers with the results we achieved from our ‘big picture’ analysis, that is, finding the best issuers in our preferred geographic regions. These results include our outlook for interest rates, currencies, and credit risk. The aim of combining these two is to give us confidence we are not only investing in the right borrowers but that we are also using the right investment vehicle to optimise our performance.
Current Unit Price after Distributions (as at 20 February 2012) $1.0065
Distribution Summary
Total distributions per unit since inception $0.0320
Date
Distribution Amount
Date
Distribution Amount
15/6/11
0.0035 cents / unit
15/11/11
0.0035 cents / unit
15/7/11
0.0035 cents / unit
15/12/11
0.0035 cents / unit
15/8/11
0.0040 cents / unit
15/01/12
0.0035 cents / unit
15/9/11
0.0035 cents / unit
15/02/12
0.0040 cents / unit
15/10/11
0.0030 cents / unit
Fund Inception April 2011
How has the fund performed as at 31 January 2012
One Month
Three Months
Six Months
High Income Fund
+ 1.0%
+ 2.5%
+ 3.4%
Benchmark (ANZ NZ Govt Bond Gross Return Index)
- 0.1%
+ 3.6%
+ 6.6%
* Returns to date include the impact of monthly income distributions.
The High Income Fund is now nine months old. The Fund continues to attract a strong investor base and has now grown to a size of nearly $20 million. These strong fund flows have enabled the portfolio manager, David McLeish, to deploy capital selectively and construct his ideal fixed income portfolio across a diverse range of economies and sectors. Our strong focus on capital preservation and reliable returns continues to pay dividends and is most clearly reflected in the performance of the Fund over the past six months. This performance can be largely attributed to 3 major factors: (1) ongoing demand for the Fund’s carefully selected government bond holdings; (2) credit selection focused on short duration, defensive companies; and (3) favorable debt restructuring events.-
This page is updated as changes to the portfolio occur. As you can see from the graphs and the list of companies below the Fund reflects a diversified portfolio of bonds issued by governments and corporates from around the world. Investments are only ever selected once they have passed our strict solvency, liquidity, and efficiency criteria.
High Income Fund Geographic Diversification
High Income Fund Sector Breakdown
Portfolio Holdings
Auckland City Council
Bank of America
Barclays Bank PLC
BBVA SM
China National Oil Offshore Corporation
Genesis Power Ltd
Globo Communicacoes
GPG Finance PLC
HBOS PLC
HSBC Bank
Insurance Australia Company
ING Groep NV
Lloyds Banking Group PLC
NZ Government
Pernod Ricard SA
Rabobank Nederland
Reliance Industries Ltd
Santos Ltd
Telefonica SA
UK Gilts
Unitymedia NRW GmBh
US Treasuries
David McLeish, Senior Portfolio Manager
Total Years’ Investment Experience 12 years.
David has recently returned from London and joined Fisher Funds to run our fixed interest portfolios. With over a decade of experience trading and specialising in fixed interest securities around the globe, David’s skill-set is a rare commodity in New Zealand.
During his time in London he worked for Morgan Stanley, UBS and Goldman Sachs.
Most recently, whilst at Goldman Sachs, David was charged with responsibility for building a multi-asset class investment team. As a result of his efforts he gained recognition from many of the world’s largest investment funds as being a market leader in his field.
Complete the enclosed application form and return to Fisher Funds with your cheque.
If you wish to transfer funds online, please contact us for our bank details.
If you would like us to send you an information pack on the Fund, click here
Our investment statement is available for download in PDF format. To download a copy click on the button below.
If you do not already have the free Acrobat Reader software you will need to download it from the Adobe website before you can view and print our investment statement.
One Month 
