Inspired by the New Zealand falcon/kārearea. Capable of flying at speeds over 100 km/h and catching prey larger than itself, the New Zealand falcon is one of our most spectacular birds.
Hunter Investment Funds
Hunter is a specialist New Zealand-based investment management scheme that was founded by industry veteran Tony Hildyard. Our focus is on providing quality New Zealand-centric investment solutions that address the wide range of investment issues that directly impact returns to end investors.
Hunter investment philosophy
Hunter believes in active management!
We believe that:
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- active managers can add value through their active research and market insights;
- it is possible to identify managers who regularly add value on an after fees basis; and
- active management can also help mitigate market risk.
However, we also recognise some investors have a preference for low cost, tax efficient “market” exposures.
Accordingly, Hunter’s investment philosophy is based on the following beliefs:
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- both active and passive investment strategies can play valuable roles within portfolio construction;
- that the decision to be an “active” or “passive” investor is only one factor in a successful investment strategy;
- strategic asset allocation is an important component in determining long-term investment returns and the trade-off between risk and return;
- diversification across a range of geographic regions, asset classes and securities is an important risk mitigation factor;
- regular rebalancing is beneficial to ensure appropriate risk tolerances are maintained so long as this is undertaken in a cost-effective way;
- fees reduce returns to investors and are an important consideration;
- taxation can also be a drag on returns and structuring of investment matters; and
- responsible investment is important and requires specialist, active engagement.
Hunter Global Fixed Interest Fund
In keeping with Hunter’s philosophy of selecting the optimal approach for each asset class, the Hunter Global Fixed Interest Fund is actively managed.
Hunter considers that for broadly diversified bond portfolios, in particular, an active approach is to be preferred. This is in part because of the difficulty of truly replicating broad global bond indices passively, when much of the index is privately held and does not trade regularly or on listed markets.
Additionally, for bond investors, the most important success factor is to avoid a credit default which can cause a permanent loss of capital. Accordingly, managing ever changing credit conditions is vital to protecting the value of your portfolio. This can only be done through active management.
For the Hunter Global Fixed Interest Fund we have appointed leading global specialist PIMCO to manage the portfolio’s assets.
PIMCO is one of the world’s premier fixed income investment managers with US$2.21 trillion assets under management as of 31 December 2020. Launched in 1971 in Newport Beach, California, PIMCO introduced investors to a total return approach to fixed income investing. In the 45+ years since, they have continued to bring innovation and expertise to partnership with clients seeking the best investment solutions. Today they have offices across the globe and more than 3,000 professionals united by a single purpose: creating opportunities for investors in every environment.
The Hunter Global Fixed Interest Fund is designed for investors like KiwiSaver providers, community trusts, charities, and corporate superannuation scheme, many of whom have a strong focus on responsible investment. Accordingly, the Fund has explicit exclusions around tobacco, armaments, fossil fuels, pornography, and gambling. In addition, PIMCO is a UNPRI signatory and ESG is an important factor in all their investment decisions.
The Hunter Global Fixed Interest Fund owns all of its assets directly within a segregated portfolio, which is structured as a PIE-compliant New Zealand-domiciled fund. The Fund’s assets are held on trust by Trustees Executors Limited and their global custodian JP Morgan under the supervision of NZGT. This is the most efficient structure for New Zealand domiciled investors, as it avoids any tax leakage for both tax paying and zero-tax charitable investors.