harbour australasian equity focus fund fund update · harbour australasian equity focus fund fund...

Harbour Investment Funds

Total value of the Fund (NZD)

The date the Fund started

What are the risks of investing?

Note that even the lowest category does not mean a risk-free investment, and there are other risks that are not captured

by this rating.

This risk indicator is not a guarantee of a fund's future performance. The risk indicator is based on the returns data for the

5 years to 31 March 2018. While risk indicators are usually relatively stable, they do shift from time to time. The risk indicator will continue to be updated in future fund updates. See the Product Disclosure Statement (PDS) for more

information about the risks associated with investing in this Fund.

12,084,578$

10 April 2014

Harbour Australasian Equity Focus Fund

Fund Updatefor the quarter ended 31 March 2018

This fund update was first made publicly available on 27 April 2018

What is the purpose of this update?

This document tells you how the Harbour Australasian Equity Focus Fund has performed and what fees were charged.

The document will help you compare the Fund with other funds. Harbour Asset Management Limited prepared this

update in accordance with the Financial Markets Conduct Act 2013. This information is not audited and may be

updated.

Description of this fund

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.

Investment Objective: To deliver medium to long term capital growth through investing in quality businesses with

strong growth prospects.

Benchmark: 50% S&P/NZX 50 and a 50% S&P/ASX 200 Index (which is 50% hedged into NZ dollars).

A combination of actual Fund returns and market index returns have been used to determine the risk indicator for the Harbour Australasian Equity Focus Fund (inception 10 April 2014), as the Fund has not been operational for the required 5 years. The risk indicator may therefore provide a less reliable indicator of potential future volatility of this Fund.

The risk indicator is rated from 1 (low) to 7 (high). The rating reflects how much the value of the Fund's assets goes up and down. A higher risk generally means higher potential returns over time, but more ups and downs along the way. To help you clarify your own attitude to risk, you can seek financial advice or work out your risk profile at www.sorted.org.nz.

1 |Harbour Investment Funds

How has the Fund performed?

What fees are investors charged?

Total fund charges (Inc. GST)*

Which are made up of:

Including-

Manager’s basic fee

Other management and

administration charges3

Annual Return Graph2 Total Performance-based fees

Including-0.0092

Manager’s basic fee0.002


administration charges3 0

Annual Return Graph Total Performance-based fees

Example of how this applies to an investor

This shows the return after Fund charges and tax for Jenny had $10,000 in the Harbour Australasian Equity

each year ending 31 March since the Fund started. Focus Fund at the start of the year and did not make any

further contributions. At the end of the year, Jenny received

since the fund started, up to 31 March 18. a return, after fund charges were deducted, of $2,090

Market Index Returns do not include any tax, (that is 20.90% of her initial $10,000). This gives Jenny a

total return after tax of $2,070 for the year.expenses or charges.

The last bar shows the annualised annual return

Total management and

administration1.33%

1.01%

0.32%

0.00%

Market index annual

return1

% of net asset value

(reflects no deduction for

charges and tax)

1.33%

8.99%

Annual Return1

20.90%

Annual Return1

(after deductions for charges

and tax)

Past Year

20.70%


but before tax)

The market index annual return is based on the weighted average return of the market indices used to measure performance of the underlying fund. In this case the Market Index is 50% S&P/NZX50 and a 50% S&P/ASX 200 Index (which is hedged into NZD).Additional information about the market index is available on the offer register at www.business.govt.nz/disclose.

* It is expected that fund charges for the year to 30 June 2018 will be different from the fees presented in the table above due to a performance fee that was paid on 1 January 2018. The High water mark (HWM) & benchmark were also reset on this date. For more information on how the performance fee is charged, please refer to the PDS.

Investors may also be charged individual action fees for specific

actions or decisions (for example, for withdrawing from or

switching funds). See the PDS and Other Material Information

Document (OMI) for more information about fees. Also see the

product disclosure statement for more information about the

basis on which performance fees are charged.

Important: This does not tell you how the Fund will perform in the future. Returns in this update are after tax at the highest prescribed investor rate (PIR) of tax for an individual New Zealand resident. Your tax may be lower.

2.3

9%

20

.94

%

11

.17

%

20

.70

%

13

.63

%

13

.80

%

5.5

4%

13

.85

%

8.9

9% 1

0.4

8%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

Australasian Equity Focus Fund market index

Investors in the Fund are charged fund charges. In the year to 30 June 2017 these were as follows:

Small differences in fees and charges can have a big impact on

your investment over the long term.


What does the Fund invest in?

This shows the types of assets that the fund invests in.

Top 10 investments

The top 10 investments make up 61.9% of the net asset value of the Fund.

Actual asset allocation to 31 March 2018. Actual asset allocation will vary from the target asset allocation as market

conditions and if we pursue tactical investment opportunities.

13.76%

8.32%

Name % of Fund net assets Type Country

A2 Milk Australasian equities NZ

CSL Australasian equities AU

Mainfreight Australasian equities NZ6.68%

Macquarie Group Australasian equities AU

Summerset Group Holdings Australasian equities NZ

6.44%

5.81%

Janus Henderson Group Australasian equities AU

Vista Group International Australasian equities NZ

4.55%

4.44%

Xero NZ Australasian equities AU

Scales Corp Australasian equities NZ

4.04%

4.00%

Oil Search Australasian equities AU3.82%

96.44%

3.56%

Actual Investment Mix

Australasian Equities Cash & Cash Equivalents

95.00%

5.00%

Target Investment Mix



Key Personnel

Name

Further information

Notes:

1. Returns to 31 March 2018.

2. The bar chart shows fund returns after the deduction of fees and tax, however the market index returns are

shown before any fees or tax is deducted.

3. Other fees: these charges cover the general management of the Fund e.g. administration, Supervisor, legal,

and audit fees and costs required to comply with relevant legislation. These charges are based on the audited

financial statements for the Fund to 30 June 2017 and includes any applicable GST. These also include

underlying fund charges for retail funds holding units in other Harbour Funds. More information on these

charges can be found in the PDS and the other material information document (OMI) on the Disclose Register.

4. The Fund currently has 42.74% of assets invested in Australian equities. Of this exposure, we have a

24.99% hedge on these Australian dollar denominated assets.

Hyperlinks to Harbour documents:

Current PositionTime in current

positionPrevious position

Time in previous

position

Andrew

Bascand

Managing Director &

Portfolio Manager

8 years and 3 months Senior Vice President &

Portfolio Manager,

Alliance Bernstein

10 Years

Shane Solly Director, Portfolio

Manager and

Research Analyst

4 years and 0 months Head of Equities, Mint

Asset Management

7 years & 2

months

Craig Stent Executive Director &

Portfolio Manager

8 years and 3 months Research Analyst, Alliance

Bernstein

7 years & 3

months

You can also obtain this information, the PDS for the Harbour Australasian Equity Focus Fund, and

some additional information from the offer register at www.business.govt.nz/disclose.

Product Disclosure statement (PDS) Other material information (OMI) Statement of Investment policy & objectives (SIPO)


https://www.harbourasset.co.nz/assets/Legal/FMA-Docs/125e16c556/Harbour-Product-Disclosure-Statement-April-2018.pdf

https://www.harbourasset.co.nz/assets/Legal/FMA-Docs/a2e978e2ed/Other-Material-Document-replacement-February-2018.pdf

https://www.harbourasset.co.nz/assets/Legal/FMA-Docs/08a5241005/SIPO-replacement-June-2017-FINAL.pdf



Note that even the lowest category does not mean a risk-free investment, and there are other risks that

are not captured by this rating.

This risk indicator is not a guarantee of a fund's future performance. The risk indicator is based on the returns

data for the 5 years to 31 March 2018. While risk indicators are usually relatively stable, they do shift from time to time. The risk indicator will continue to be updated in future fund updates.

11 April 2010The date the Fund started

Total value of the Fund (NZD) $227,254,178

Harbour Australasian Equity Fund




This document tells you how the Harbour Australasian Equity Fund has performed and what fees were charged. The

document will help you compare the Fund with other funds. Harbour Asset Management Limited prepared this update in

accordance with the Financial Markets Conduct Act 2013. This information is not audited and may be updated.


The Fund provides actively managed exposure to New Zealand and Australian listed equities. This Fund has a growth -oriented investment management approach to generate alpha (return over the benchmark) for investors.

Investment Objective: To achieve a gross return of 5.0% per annum above the benchmark over the long term.

Benchmark: S&P/NZX 50 Index


See the Product Disclosure Statement (PDS) for more information about the risks associated with investing in this Fund.

1 | Harbour Investment Funds

How has the Fund performed? This shows the return after fund charges and tax for each

up to 31 March 18. The Market Index Returns do not include

any tax, expenses or charges.


Total fund charges (Inc. GST)


Including-


Annual Return Graph2



Total Performance-based fees


Jenny had $10,000 in the Harbour Australasian Equity

Fund at the start of the year and did not make any


a return, after fund charges were deducted, of $2,027

(that is 20.27% of her initial $10,000). This gives Jenny a

total return after tax of $1,949 for the year.

0.92%

0.00%

0.20%


1.12%


administration1.12%

year ending 31 March since the Fund started. The last bar

shows the annualised annual return since the Fund started,

19.49%

20.27%

Past Year

Average

over past 5

years

16.93%

Annual Return1

(after deductions for

charges and tax)

Annual Return1


charges but before tax)

Market index annual

return1


charges and tax)

14.82%

15.93%

14.89%

The market index annual return is based on the weighted average return of the market indices used to measure performance of the underlying fund. In this case the Market Index is the S&P/NZX50 Index. Additional information about the market index is available on the offer register at www.business.govt.nz/disclose.





Document OMI for more information about fees. Also see the






-3.4

%

25

.6%

19

.9%

6.4

%

19

.0%

10

.0%

19

.5%

12

.6%

3.6

%

27

.7%

17

.5%

15

.2% 17

.3%

7.9

%

16

.9%

13

.9%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%


Market Index




Top 10 investments


NZ

NZ

AU

2.86%

3.21%

Meridian Energy NZ

% of Fund net assets Type

Australasian equities










Name

5.66%

4.78%

4.54%

4.30%

3.49%

CSL

Fisher & Paykel Healthcare

Mainfreight

Spark New Zealand

Contact Energy



Country

NZ

NZ

NZ

A2 Milk 14.50%

6.46%

6.03%

NZ

NZ

NZAuckland Intl Airport

Summerset Group Holdings

Fletcher Building

94.93%

5.07%



98.00%

2.00%




Key Personnel

Name

Further information

Notes:









4. The Fund currently has 22.76% of assets invested in Australian equities. Of this exposure,

we have a 19.97% hedge on these Australian dollar denominated assets.


Head of Equities, Mint

Asset Management

Research Analyst, Alliance

Bernstein

Senior Vice President &

Portfolio Manager,

Alliance Bernstein

7 years & 3

months

7 years & 2

months

10 Years

Time in previous

positionTime in current position Previous position

Shane Solly

Craig Stent

Andrew

Bascand

Current Position

Managing Director &

Portfolio Manager

Director, Portfolio

Manager and Research

Analyst

Executive Director &

Portfolio Manager

4 years and 0 months



You can also obtain this information, the PDS for the Harbour Australasian Equity Fund, and some

additional information from the offer register at www.business.govt.nz/disclose.










Note that even the lowest category does not mean a risk-free investment, and there are other risks that are not

captured by this rating.


5 years to 31 March 2018. While risk indicators are usually relatively stable, they do shift from time to time. The riskindicator will continue to be updated in future fund updates. See the Product Disclosure Statement (PDS) for more information

about the risks associated with investing in the Fund.

42,199,072$

1 November 2011

Harbour Australasian Equity Income Fund




This document tells you how the Harbour Australasian Equity Income Fund has performed and what fees were charged.



updated.


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.

Investment Objective: The performance objective of the Fund is to generate a higher yield than the New Zealand

and Australian markets.

Benchmark: 60% S&P/ASX Industrials Index and 40% S&P/NZX Portfolio Index.




Annual Return1




Including-





Including-0.0092




Annual Return Graph Total Performance-based feesExample of how this applies to an investor


Income Fund at the start of the year and did not make any


a return, after fund charges were deducted, of $253


total return after tax of $151 for the year.

This shows the return after Fund charges and tax for

each year ending 31 March since the Fund started.

since the fund started, up to 31 March 18.

Market Index Returns do not include any tax,

0.30%

0.00%

expenses or charges.



administration

Annual Return1

(after deductions for charges but

before tax)

1.11%

0.81%


Market index annual

return1 1.11%


charges and tax)

10.55% 2.53%

12.45% 11.14%

(after deductions for charges and

tax)

Average

over past 5

years

Past Year

8.93% 1.51%

The market index annual return is based on the weighted average return of the market indices used to measure performance of the underlying fund. In this case the Market Index is 60% S&P/ASX industrials Index and 40% S&P/NZX portfolio Index. Additional information about the market index is available on the offer register at www.business.govt.nz/disclose.




Document (OMI) for more information about fees.


26

.04

%

8.2

2%

24

.75

%

5.0

8%

6.4

9%

1.5

1%

11

.86

%

22

.43

%

12

.62

% 16

.01

%

8.2

2%

14

.42

%

11

.14

% 15

.43

%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

31/0

3/20

13

31/0

3/20

14

31

/03

/20

15

31

/03

/20

16

31/0

3/20

17

31/0

3/20

18

Ave

rage

an

nu

al r

etu

rnsi

nce

ince

pti

on


Market Index







Top 10 investments


Property For Industry Australasian equities

Vital Healthcare Property Australasian equities

National Australia Bank Australasian equities

Spark New Zealand

NZ


2.76%

2.74%

NZ

Kathmandu Holdings Australasian equities NZ

2.89%

2.77%

AU

Charter Hall Group Australasian equities AU

3.21%

3.04%

Australasian equities NZ

Mainfreight Australasian equities NZ

3.71%

3.23%

Contact Energy Australasian equities NZ

Meridian Energy Australasian equities NZ

4.05%

3.78%




75.01%

24.99%



90.00%

10.00%

Target Mix



Key Personnel

Name

Further information

Notes:














Analyst


Asset Management



7 years & 2

months

Andrew

Bascand

Managing Director &

Portfolio Manager


Portfolio Manager,

Alliance Bernstein

10 years

Time in previous

position


Portfolio Manager


Bernstein

7 years & 3

months

You can also obtain this information, the PDS for the Harbour Australasian Equity Income Fund, and








Replacement Fund UpdateThis Fund update is a replacement fund update and replaces the previous fund update.

Below is a summary of changes that have been made:



Harbour Income Fund


This fund update was first made publicly available on 21 June 2018

Date the fund

update was originally made

publicly available

Section of

fund update

Description and reason for the change Original

disclosure

Updated

disclosure

27-Apr-18 Information

relating to

returns

Since October 2017, the Harbour Income Fund has invested in an

instrument that was valued incorrectly within the Fund’s unit price. The

size of the holding was under 1% of the Fund. Cumulatively over this

period, the unit price and performance of the Fund have been

overstated. This error was identified and corrected on 15 June.

Working with our Supervisor and Custodian, the performance numbers

for the Fund have been restated for the March quarterly Fund update.

Fund return

after charges &

tax: 2.27%; after

charges before

tax: 3.26%;

since inception

3.12%

The date the Fund started 28 October 2015

Fund return

after charges &

tax: 2.17%; after

charges before

tax: 3.16%;

since inception

3.08%


This document tells you how the Harbour Income Fund has performed and what fees were charged. The document will

help you compare the Fund with other funds. Harbour Asset Management Limited prepared this update in accordance

with the Financial Markets Conduct Act 2013. This information is not audited and may be updated.


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.

Investment Objective: The investment objective of the Fund is to exceed the Official Cash Rate (OCR) plus 3.5% pa

over rolling three year periods.

Benchmark: 68% S&P/NZX A Grade Corporate Bond Total Return Index; 16% S&P/ASX200 Industrials Index (100%

hedged to NZ dollars); and 16% S&P/NZX Portfolio Index.

A combination of actual Fund returns and market index returns have been used to determine the risk indicator for the Harbour Income Fund (inception 28 October 2015), as the Fund has not been operational for the required 5 years. The risk indicator may therefore provide a less reliable indicator of potential future volatility of this Fund.

The risk indicator is rated from 1 (low) to 7 (high). The rating reflects how much the value of the Fund's assets goes up





data for the 5 years to 31 March 2018. While risk indicators are usually relatively stable, they do shift from time

to time. The risk indicator will continue to be updated in future fund updates.


Annual Return1





Including-




Annual Return Graph2 Including-Total Performance-based fees





This shows the return after Fund charges and tax for each year ending 31 March since the Fund Example of how this applies to an investorstarted.

since the fund started, up to 31 March 18. Market Index Returns do not include any tax,


tax)

Annual Return1


before tax)

Market index annual return1

(reflects no deduction for charges

and tax)



0.72%

0.72%

0.53%

0.19%

0.00%

Past Year

2.17%

3.16%

6.01%


administration




Document OMI for more information about fees.

The market index annual return is based on the weighted average return of the market indices used to measure performance of the underlying fund. In this case the Market Index is 68% S&P/NZX A Grade Corporate Bond Total Return Index; 16% S&P/ASX200 Industrials Index (100% hedged to NZ dollars); and 16% S&P/NZX Portfolio Index. Additional information about the market index is available on the offer register at www.business.govt.nz/disclose.


3.19%

2.17%3.08%

6.51%6.01%

6.81%

0.0%1.0%2.0%3.0%4.0%5.0%6.0%7.0%8.0%

31/03/2017 31/03/2018 Average annualreturn since

inceptionHarbour Income Fund Market Index




The risk indicator is rated from 1 (low) to 7 (high). The rating reflects how much the value of the Fund's assets goes up and down. A higher risk generally means higher potential returns over time, but more ups and downs along the way. To help you clarify your own attitude to risk, you can seek financial advice or work out your risk profile at


* It is expected that fund charges for the year to 30 June 2018 will be different from the fees presented in the table above due to changes that have been made to the fee structure for the Fund, effective 19th June 2017. The PDS sets out an estimate of the fund charges based on the new fee structure and we suggest this will provide you with a more accurate indication of the likely fund charges for the year to 30 June 2018.


https://www.harbourasset.co.nz/wp-content/uploads/2017/04/Harbour-Product-Disclosure-Statement-web.pdf

Jenny had $10,000 in the Harbour Income Fund at the start of the year and did not make any further contributions.

At the end of the year, Jenny received a return, after fund charges were deducted, of $316 (that is 3.16% of her initial .

$10,000). This gives Jenny a total return after tax of $217 for the year.



Country Credit Rating

NZGS Index Linked Bond 20/09/2025 2.00% NZ

NZ Local Gov Fund Agency 15/04/27 4.50% NZ


Westpac NZ Limited 23/03/2023 3.72% NZ

Contact Energy Limited 27/05/2020 5.277 NZ

BNZ 25/06/2019 5.57% NZ

NZ Local Govt Fund Agency 04/25 2.75% NZ

ANZ 11/05/2020 4.48% NZ

Government Index Link Bd 20/09/40 2.50% NZ

Genesis Power Limited 01/11/2019 5.205% NZ


AA+



Top 10 investments

Name% of Fund

net assetsType

4.37% New Zealand fixed interest

3.53% New Zealand fixed interest AA+


2.63% New Zealand fixed interest AA-

2.08% New Zealand fixed interest BBB





1.38% New Zealand fixed interest BBB+

23.78%

63.65%

1.81%10.76% 0.00%

Australasian Equities NZ Fixed Interest

International fixed interest Cash & cash equivalents

International Equities

32.00%

50.00%

10.00%

8.00%



International fixed interest Cash & cash equivalents

International Equities


Key Personnel

Name

Further information

Notes:





and audit fees and costs required to comply with relevant legislation. These charges are based on audited

financial statements to 30 June 2017 and includes any applicable GST. These also include underlying fund charges for

reatil funds holding units in other Harbour Funds. More information on these charges can be found in the PDS and the

other material information document (OMI) on the Disclose Register.




Time in previous position

7 years and 6 months AXA/Alliance Bernstein,

Head of Fixed Interest

16 years & 5 months


Portfolio Manager

8 years and 3 months Research Analyst,

Alliance Bernstein

7 years & 3 months

Simon Pannett Director, Research

Analyst

4 years and 8 months Investment Solutions, UK

Investment Analyst

2 years & 4 months

Mark Brown Portfolio Manager

You can also obtain this information, the PDS for the Harbour Income Fund, and some additional

information from the offer register at www.business.govt.nz/disclose.













The date the Fund started 24 May 2011

Harbour NZ Core Fixed Interest Fund





This document tells you how the Harbour NZ Core Fixed Interest Fund has performed and what fees were charged. The

document will help you compare the Fund with other funds. Harbour Asset Management Limited prepared this update

in accordance with the Financial Markets Conduct Act 2013. This information is not audited and may be updated.


The Fund is an actively managed investment grade bond fund that invests mainly in New Zealand Government and corporate bond fixed interest securities.

Investment Objective: The investment objective of the Fund is to outperform the benchmark by 100 basis points per

annum over a rolling three year period.

Benchmark: 50:50 weighted average of the S&P/NZX Government Bond Index and S&P/NZX A Grade Corporate Bond

Index.






Annual Return1




Including-





Including-0.0092





Jenny had $10,000 in the Harbour NZ Core Fixed Interest









Market Index Returns do not include any tax, expenses or charges.

4.20% 4.34%(after deductions for charges but

before tax)% of net asset value

Market index annual

return1

4.44% 4.64%

0.67%

0.54%

0.13%

0.00%



charges and tax)


administration0.67%

3.00% 3.07%(after deductions for charges and

tax)

Annual Return1

Average

over past 5

years

Past Year




Document (OMI )for more information about fees.

The market index annual return is based on the weighted average return of the market indices used to measure performance of the underlying fund. In this case the Market Index is 50:50 weighted average of the S&P/NZX Government Bond Index and S&P/NZX A Grade Corporate Bond total return Index. Additional information about the market index is available on the offer register at www.business.govt.nz/disclose.


4.8

0%

0.6

3%

5.1

5%

4.7

2%

1.5

2% 3

.07

%

3.4

5%

6.5

3%

0.4

8%

8.7

5%

6.5

1%

2.0

5%

4.6

4%

5.1

8%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

31/0

3/20

13

31/0

3/20

14

31/0

3/20

15

31/0

3/20

16

31/0

3/20

17

31/0

3/20

18

Ave

rage

an

nu

al r

etu

rnsi

nce

ince

pti

on

Harbour NZ Core Fixed Interest Fund Market Index







Top 10 investments


NZ Government Stock 15/03/2019 5.00% NZ










The top 10 investments make up of the net asset value of the Fund.

New Zealand fixed interest2.43%

1.56% AA+

AA+

AA+

AA+

AA+

7.38%

3.38%

3.26%

3.21%

New Zealand fixed interest





AA+

AA+3.05%


2.96% AA+

AA+


3.10%

Name% of Fund

net assetsType




AA+7.62%


37.9%

89.67%

4.11%6.21%


NZ fixed interest International fixed interest

Cash & cash equivalents

85%

10%5%





Key Personnel

Name

Further information

Notes:










9 years & 1

month

16 years & 5

months




Time in previous

position

Simon Pannett Investment Analyst 4 years and 8 months Investment Solutions, UK

Investment Analyst

2 years & 4

months

Mark Brown

Christian

Hawkesby

Current Position Time in current position Previous position

Head of Fixed Interest Bank of England

Portfolio Manager

You can also obtain this information, the PDS for the Harbour NZ Core Fixed Interest Fund, and some







$330,777,946

16 February 2009



by this rating.

This risk indicator is not a guarantee of a fund's future performance. The risk indicator is based on the returns data

for the five years to 31 March 2018. While risk indicators are usually relatively stable, they do shift from time to

time. The risk indicator will continue to be updated in future fund updates.



HARBOUR NZ CORPORATE BOND FUND

Fund Update

for the quarter ended 31 March 2018





This document tells you how the Harbour NZ Corporate Bond Fund has performed and what fees were charged. The document will help you compare the Fund with other funds. Harbour Asset Management Limited prepared this update in accordance with the Financial Markets Conduct Act 2013. This information is not audited and may be updated.


The Fund provides access to favourable income yields through a diversified portfolio of primarily investment grade corporate bond fixed interest securities.

Investment Objective: The investment objective of the Fund is to exceed the return of the benchmark portfolio

after fees on a rolling 12 month basis.

Benchmark: S&P/NZX A Grade Corporate Bond Total Return Index.


1| Harbour Investment Funds


Average

over past 5

years

Past Year

Annual Return1


and tax)What fees are investors charged?

Annual Return1


but before tax)

Market index annual

return1 Total fund charges (Inc. GST)


charges and tax)Which are made up of:


administration charges

Including-





Example of how this applies to an

investor

Jenny had $10,000 in the Harbour NZ Corporate Bond Fund

at the start of the year and did not make any further

contributions. At the end of the year, Jenny received a

return after fund charges were deducted of $416 (that is

This shows the return after fund charges and tax for each 4.16% of her initial $10,000). This gives Jenny a total

year ending 31 March since the Fund started. The last bar return after tax of $298.


up to 31 Mar 2018. The Market Index Returns do not include


4.72%



0.64%

0.54%

0.10%

0.00%

0.64%

3.15% 2.98%

4.41% 4.16%

4.99%

The market index annual return is based on the weighted average return of the market indices used to measure performance of the underlying fund. In this case the Market Index is the S&P/NZX A Grade Corporate Bond Total Return Index. Additional information about the market index is available on the offer register at www.business.govt.nz/disclose


Investors may also be charged individual action fees for

specific actions or decisions (for example, for

withdrawing from or switching funds). See the PDS and

Other Material Information Document (OMI) for more

Small differences in fees and charges can have a big

impact on your investment over the long term.


6.0

4%

4.5

8%

4.0

4%

4.6

1%

1.8

4%

4.9

8%

4.1

4%

1.8

6%

2.9

8%

3.7

8%

9.9

6%

8.7

7%

6.8

0%

6.6

3%

2.6

7%

8.1

2%

6.4

0%

3.1

3% 4.7

2%

5.9

4%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

Harbour NZ Corporate Bond Fund Market Index




change and if we pursue tacitcal investment opportunities.

Top 10 investments

Name% of Fund

net assetsCountry Credit rating

NZ Local Govt Fund

Agency 04/25 2.75%5.75% NZ AA+

NZ Local Gov Fund Agency

15/04/27 4.50%3.97% NZ AA+

BNZ 25/06/2019 5.57% 3.23% NZ AA-

ASB Bank Limited

26/05/2021 4.245%2.76% NZ AA-

Kommunalbanken AS

28/03/2019 5.00%2.71% NZ AAA

JPMorgan Chase & Co

02/11/2018 4.25%2.29% NZ A-

Rabobank New Zealand

04/09/2018 3.641%2.28% NZ A+

Fonterra Cooperative Grp

20/10/21 4.33%2.10% NZ A-

ANZ 11/05/2020 4.48% 2.03% NZ AA-


14/04/33 3.50%2.00% NZ AA+


Actual asset allocation to 31 Mar 2018. Actual asset allocation will vary from the target asset allocation as

Type

New Zealand fixed

interest

New Zealand fixed

interest

New Zealand fixed

interest

New Zealand fixed

interest

New Zealand fixed

interest

New Zealand fixed

interest

New Zealand fixed

interest

New Zealand fixed

interest

New Zealand fixed

interest

New Zealand fixed

interest

94.11%

5.89%


NZ fixed interest Cash & cash equivalents

95%

5%




Key Personnel

NameCurrent

PositionPrevious position

Time in previous

position

Christian

Hawkesby

Simon

Pannett

Further information

Notes:

1. Returns to 31 Mar 2018.

2. The bar chart shows fund returns after the deduction of fees and tax, however the market index returns are shown

before any fees or tax is deducted.

3. Other fees: these charges cover the general management of the Fund e.g. administration, Supervisor, legal, and audit

fees and costs required to comply with relevant legislation. These charges are based on the audited financial

statements for the Fund to 30 June 2017 and includes any applicable GST. More information on these charges can be

found in the PDS and the other material information odcument (OMI) on the Disclose Register.

www.business.govt.nz/disclose


9 years and 1

months

2 years and 4

months



AXA/Alliance Bernstein, Head of

Fixed Interest

Investment

Analyst

Investment Solutions, UK

Investment Analyst

Head of

Fixed

Interest

Bank of England

16 years and 5

monthsMark Brown

Portfolio

Manager

Time in current

position


You can also obtain this information, the PDS for the Harbour NZ Corporate Bond Fund, and some additional














3 December 2014The date the Fund started


Harbour NZ Equity Advanced Beta Fund




This document tells you how the Harbour NZ Equity Advanced Beta Fund has performed and what fees were charged. The




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.

Investment Objective: The performance objective of the Fund is to outperform the benchmark.

Benchmark: S&P/NZX Portfolio Index.

A combination of actual Fund returns and market index returns have been used to determine the risk indicator for the Harbour NZ Equity Advanced Beta Fund (inception 3 December 2014), as the Fund has not been operational for the required 5 years. The risk indicator may therefore provide a less reliable indicator of potential future volatility of this Fund.



1|Harbour Investment Funds







Including-







Jenny had $10,000 in the Harbour NZ Equity Advanced Beta






Past Year

13.29%

14.71%

16.87%



Market index annual

return1 % of net asset value


charges and tax)0.55%


administration0.55%

0.41%

0.14%

0.00%

Annual Return1


charges and tax)

Annual Return1



The market index annual return is based on the weighted average return of the market indices used to measure performance of the underlying fund. In this case the Market Index is the S&P/NZX Portfolio Index. Additional information about the market index is available on the offer register at www.business.govt.nz/disclose.











13

.62

%

6.5

0%

13

.29

%

12

.21

%

16

.49

%

8.5

0%

16

.87

%

14

.68

%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

31/03/2016 31/03/2017 31/03/2018 Averageannual

return sinceinception


Market Index

this Fund.




Top 10 investments


5.89%

4.24%

4.23%

4.18%

4.00%

3.81%

3.77%

3.53%

Fletcher Building Australasian equities NZ3.24%

Z Energy Australasian equities NZ

Fisher & Paykel Healthcare Australasian equities NZ3.48%


Ryman Healthcare Australasian equities NZ

Auckland Intl Airport Australasian equities NZ


Spark New Zealand Australasian equities NZ

Skycity Entertainment Group Australasian equities NZ





98.71%

1.29%



99.00%

1.00%




Key Personnel

Name

Further information

Notes:






financial statements for the Fund to 30 June 2017 and includes any applicable GST.

More information on these charges can be found in the PDS and the other material information document (OMI)

on the Disclose Register.



Bernstein

7 years & 3

months


Asset Management

7 years & 2

months


Portfolio Manager



Manager and

Research Analyst


Susanna Lee Director, Portfolio

Manager

5 years and 11 months Quantitative Investment

Analyst. AXA Global

Investors/AMP Capital

4 years & 2

months

Andrew

Bascand

Managing Director &

Portfolio Manager


Portfolio Manager,

Alliance Bernstein

10 years



Time in previous

position

You can also obtain this information, the PDS for the Harbour NZ Equity Advanced Beta Fund, and
















T. Rowe Price Global Equity Growth Fund




This document tells you how the T. Rowe Price Global Equity Growth Fund has performed and what fees were charged.


update in accordance with the Financial Markets Conduct Act 2013. This information is not audited and may be updated.


The Fund invests 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. It may include securities of companies traded on recognised exchanges of developing countries.

Investment Objective:

The Fund’s objective is 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 recognized exchanges and/or markets throughout the world.

Benchmark: MSCI All Country World Index (unhedged).

A combination of actual Fund returns and market index returns have been used to determine the risk indicator for the T. Rowe Price Global Equity Growth Fund (inception 21 October 2015), as the Fund has not been operational for the required 5 years. The risk indicator may therefore provide a less reliable indicator of potential future volatility of this Fund.




Annual Return1





Including-



Annual Return Graph2 administration charges3

Including-Total Performance-based fees






Jenny had $10,000 in the T. Rowe Price Global Equity Growth Fund at

at the start of the year and did not make any further contributions.

At the end of the year, Jenny received a return, after fund charges

were deducted, of $2,159 (that is 21.59% of her initial $10,000).

This shows the return after Fund charges and tax This gives Jenny a total return after tax of $2,033 for the year.

for each year ending 31 March since the Fund

started.



1.24%

1.24%

1.06%

0.18%

0.00%


administration



Annual Return1

21.59%(after deductions for charges

but before tax)

Market index annual

return1

11.29%(reflects no deduction for

charges and tax)

Past Year


and tax)





The market index annual return is based on the weighted average return of the market indices used to measure performance of the underlying fund. In this case the Market Index is MSCI All Country World Index (unhedged). Additional information about the market index is available on the offer register at www.business.govt.nz/disclose.


10.97%

20.33%

11.02%

13.48%

11.29%

8.26%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%


inception


Market Index




this Fund.



Top 10 investments

Country

Amazon.com US

Alphabet Class C US

Alibaba Group Holding CH

Tesla US

Altaba US

Facebook US

Intuit US

Roper Technologies US

TD Ameritrade Holding US

Workday US


1.32% International equities












Name% of Fund

net assetsType

98.50%

1.50%Acutal Investment Mix

International equities Cash & cash equivalents

98%

2%Target Investment Mix


Key Personnel

Name

Further information

Notes:












Time in previous

position

Andrew

Bascand

Managing Director &

Portfolio Manager


Portfolio Manager, Alliance

Bernstein

10 Years

You can also obtain this information, the PDS for the T. Rowe Price Global Equity Growth Fund, and





https://www.harbourasset.co.nz/wp-content/uploads/2017/06/SIPO-replacement-June-2017-FINAL.pdf








3 December 2014The date the Fund started






This document tells you how the Harbour NZ Equity Advanced Beta Fund has performed and what fees were charged. The




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.

Investment Objective: The performance objective of the Fund is to outperform the benchmark.

Benchmark: S&P/NZX Portfolio Index.

A combination of actual Fund returns and market index returns have been used to determine the risk indicator for the Harbour NZ Equity Advanced Beta Fund (inception 3 December 2014), as the Fund has not been operational for the required 5 years. The risk indicator may therefore provide a less reliable indicator of potential future volatility of this Fund.










Including-







Jenny had $10,000 in the Harbour NZ Equity Advanced Beta






Past Year

13.29%

14.71%

16.87%



Market index annual

return1 % of net asset value


charges and tax)0.55%


administration0.55%

0.41%

0.14%

0.00%

Annual Return1


charges and tax)

Annual Return1



The market index annual return is based on the weighted average return of the market indices used to measure performance of the underlying fund. In this case the Market Index is the S&P/NZX Portfolio Index. Additional information about the market index is available on the offer register at www.business.govt.nz/disclose.











13

.62

%

6.5

0%

13

.29

%

12

.21

%

16

.49

%

8.5

0%

16

.87

%

14

.68

%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

31/03/2016 31/03/2017 31/03/2018 Averageannual

return sinceinception


Market Index

this Fund.




Top 10 investments


5.89%

4.24%

4.23%

4.18%

4.00%

3.81%

3.77%

3.53%

Fletcher Building Australasian equities NZ3.24%

Z Energy Australasian equities NZ

Fisher & Paykel Healthcare Australasian equities NZ3.48%


Ryman Healthcare Australasian equities NZ

Auckland Intl Airport Australasian equities NZ


Spark New Zealand Australasian equities NZ

Skycity Entertainment Group Australasian equities NZ





98.71%

1.29%



99.00%

1.00%




Key Personnel

Name

Further information

Notes:











Bernstein

7 years & 3

months


Asset Management

7 years & 2

months


Portfolio Manager



Manager and

Research Analyst


Susanna Lee Director, Portfolio

Manager

5 years and 11 months Quantitative Investment

Analyst. AXA Global

Investors/AMP Capital

4 years & 2

months

Andrew

Bascand

Managing Director &

Portfolio Manager


Portfolio Manager,

Alliance Bernstein

10 years



Time in previous

position

You can also obtain this information, the PDS for the Harbour NZ Equity Advanced Beta Fund, and














The date the Fund started 24 May 2011

Harbour NZ Core Fixed Interest Fund





This document tells you how the Harbour NZ Core Fixed Interest Fund has performed and what fees were charged. The

document will help you compare the Fund with other funds. Harbour Asset Management Limited prepared this update

in accordance with the Financial Markets Conduct Act 2013. This information is not audited and may be updated.


The Fund is an actively managed investment grade bond fund that invests mainly in New Zealand Government and corporate bond fixed interest securities.

Investment Objective: The investment objective of the Fund is to outperform the benchmark by 100 basis points per

annum over a rolling three year period.

Benchmark: 50:50 weighted average of the S&P/NZX Government Bond Index and S&P/NZX A Grade Corporate Bond

Index.






Annual Return1




Including-





Including-0.0092





Jenny had $10,000 in the Harbour NZ Core Fixed Interest









Market Index Returns do not include any tax, expenses or charges.

4.20% 4.34%(after deductions for charges but

before tax)% of net asset value

Market index annual

return1

4.44% 4.64%

0.67%

0.54%

0.13%

0.00%



charges and tax)


administration0.67%

3.00% 3.07%(after deductions for charges and

tax)

Annual Return1

Average

over past 5

years

Past Year




Document (OMI )for more information about fees.

The market index annual return is based on the weighted average return of the market indices used to measure performance of the underlying fund. In this case the Market Index is 50:50 weighted average of the S&P/NZX Government Bond Index and S&P/NZX A Grade Corporate Bond total return Index. Additional information about the market index is available on the offer register at www.business.govt.nz/disclose.


4.8

0%

0.6

3%

5.1

5%

4.7

2%

1.5

2% 3

.07

%

3.4

5%

6.5

3%

0.4

8%

8.7

5%

6.5

1%

2.0

5%

4.6

4%

5.1

8%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

31/0

3/20

13

31/0

3/20

14

31/0

3/20

15

31/0

3/20

16

31/0

3/20

17

31/0

3/20

18

Ave

rage

an

nu

al r

etu

rnsi

nce

ince

pti

on

Harbour NZ Core Fixed Interest Fund Market Index







Top 10 investments












The top 10 investments make up of the net asset value of the Fund.

New Zealand fixed interest2.43%

1.56% AA+

AA+

AA+

AA+

AA+

7.38%

3.38%

3.26%

3.21%






AA+

AA+3.05%


2.96% AA+

AA+


3.10%

Name% of Fund

net assetsType




AA+7.62%


37.9%

89.67%

4.11%6.21%




85%

10%5%





Key Personnel

Name

Further information

Notes:










9 years & 1

month

16 years & 5

months




Time in previous

position

Simon Pannett Investment Analyst 4 years and 8 months Investment Solutions, UK

Investment Analyst

2 years & 4

months

Mark Brown

Christian

Hawkesby

Current Position Time in current position Previous position

Head of Fixed Interest Bank of England

Portfolio Manager

You can also obtain this information, the PDS for the Harbour NZ Core Fixed Interest Fund, and some















Harbour Income Fund





This document tells you how the Harbour Income Fund has performed and what fees were charged. The document will

help you compare the Fund with other funds. Harbour Asset Management Limited prepared this update in accordance

with the Financial Markets Conduct Act 2013. This information is not audited and may be updated.


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 activemanagement and scope to invest in sub investment grade securities may also be used to enhance returns.

Investment Objective: The investment objective of the Fund is to exceed the Official Cash Rate (OCR) plus 3.5% pa

over rolling three year periods.

Benchmark: 68% S&P/NZX A Grade Corporate Bond Total Return Index; 16% S&P/ASX200 Industrials Index (100%

hedged to NZ dollars); and 16% S&P/NZX Portfolio Index.

A combination of actual Fund returns and market index returns have been used to determine the risk indicator for the Harbour Income Fund (inception 28 October 2015), as the Fund has not been operational for the required 5 years. The risk indicator may therefore provide a less reliable indicator of potential future volatility of this Fund.





Annual Return1





Including-











This shows the return after Fund charges and tax

for each year ending 31 March since the Fund Jenny had $10,000 in the Harbour Income Fund at the start of the

started. year and did not make any further contributions. At the end of the

year, Jenny received a return, after fund charges were deducted,

since the fund started, up to 31 March 18. of $326 (that is 3.26% of her initial $10,000). This gives Jenny a

Market Index Returns do not include any tax, total return after tax of $227 for the year.


tax)

Annual Return1


before tax)

Market index annual

return1


charges and tax)



0.72%

0.72%

0.53%

0.19%

0.00%

Past Year

2.27%

3.26%

6.01%


administration





The market index annual return is based on the weighted average return of the market indices used to measure performance of the underlying fund. In this case the Market Index is 68% S&P/NZX A Grade Corporate Bond Total Return Index; 16% S&P/ASX200 Industrials Index (100% hedged to NZ dollars); and 16% S&P/NZX Portfolio Index. Additional information about the market index is available on the offer register at www.business.govt.nz/disclose.


3.1

9%

2.2

7% 3.1

2%

6.5

1%

6.0

1% 6

.81

%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%


inception

Income Fund Market Index




this Fund.

* It is expected that fund charges for the year to 30 June 2018 will be different from the fees presented in the table above due to changes that have been made to the fee structure for the Fund, effective 19th June 2017. The PDS sets out an estimate of the fund charges based on the new fee structure and we suggest this will provide you with a more accurate indication of the likely fund charges for the year to 30 June 2018.




Top 10 investments





Westpac NZ Limited 23/03/2023 3.72% NZ

Contact Energy Limited 27/05/2020 5.277 NZ

BNZ 25/06/2019 5.57% NZ


ANZ 11/05/2020 4.48% NZ

Government Index Link Bd 20/09/40 2.50% NZ

Genesis Power Limited 01/11/2019 5.205% NZ


AA+



Name% of Fund

net assetsType

4.37% New Zealand fixed interest




2.08% New Zealand fixed interest BBB





1.38% New Zealand fixed interest BBB+

23.78%

63.65%

0.00%10.76%

1.81%



International Equities Cash & cash equivalents

International fixed interest

32.00%

50.00%

0.00%

8.00%10.00%



International Equities Cash & cash equivalents

International fixed interest


Key Personnel

Name

Further information

Notes:





and audit fees and costs required to comply with relevant legislation. These charges are based on audited

financial statements to 30 June 2017 and includes any applicable GST. These also include underlying fund charges for

reatil funds holding units in other Harbour Funds. More information on these charges can be found in the PDS and the

other material information document (OMI) on the Disclose Register.




Time in previous

position

AXA/Alliance Bernstein,


16 years & 5

months


Portfolio Manager


Bernstein

7 years & 3

months

Simon Pannett Director, Research

Analyst

4 years and 8 months Investment Solutions, UK

Investment Analyst

2 years & 4

months

Mark Brown Portfolio Manager 7 years and 6 months

You can also obtain this information, the PDS for the Harbour Income Fund, and some additional














5 years to 31 March 2018. While risk indicators are usually relatively stable, they do shift from time to time. The riskindicator will continue to be updated in future fund updates. See the Product Disclosure Statement (PDS) for more information

about the risks associated with investing in the Fund.

42,199,072$

1 November 2011





This document tells you how the Harbour Australasian Equity Income Fund has performed and what fees were charged.



updated.


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.

Investment Objective: The performance objective of the Fund is to generate a higher yield than the New Zealand

and Australian markets.

Benchmark: 60% S&P/ASX Industrials Index and 40% S&P/NZX Portfolio Index.




Annual Return1




Including-





Including-0.0092






Income Fund at the start of the year and did not make any









0.30%

0.00%




administration

Annual Return1


before tax)

1.11%

0.81%


Market index annual

return1 1.11%


charges and tax)

10.55% 2.53%

12.45% 11.14%


tax)

Average

over past 5

years

Past Year

8.93% 1.51%

The market index annual return is based on the weighted average return of the market indices used to measure performance of the underlying fund. In this case the Market Index is 60% S&P/ASX industrials Index and 40% S&P/NZX portfolio Index. Additional information about the market index is available on the offer register at www.business.govt.nz/disclose.




Document (OMI) for more information about fees.


26

.04

%

8.2

2%

24

.75

%

5.0

8%

6.4

9%

1.5

1%

11

.86

%

22

.43

%

12

.62

% 16

.01

%

8.2

2%

14

.42

%

11

.14

% 15

.43

%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

31/0

3/20

13

31/0

3/20

14

31

/03

/20

15

31

/03

/20

16

31/0

3/20

17

31/0

3/20

18

Ave

rage

an

nu

al r

etu

rnsi

nce

ince

pti

on


Market Index







Top 10 investments


Property For Industry Australasian equities

Vital Healthcare Property Australasian equities

National Australia Bank Australasian equities

Spark New Zealand

NZ


2.76%

2.74%

NZ

Kathmandu Holdings Australasian equities NZ

2.89%

2.77%

AU

Charter Hall Group Australasian equities AU

3.21%

3.04%

Australasian equities NZ

Mainfreight Australasian equities NZ

3.71%

3.23%



4.05%

3.78%




75.01%

24.99%



90.00%

10.00%

Target Mix



Key Personnel

Name

Further information

Notes:














Analyst


Asset Management



7 years & 2

months

Andrew

Bascand

Managing Director &

Portfolio Manager


Portfolio Manager,

Alliance Bernstein

10 years

Time in previous

position


Portfolio Manager


Bernstein

7 years & 3

months

You can also obtain this information, the PDS for the Harbour Australasian Equity Income Fund, and




















This document tells you how the T. Rowe Price Global Equity Growth Fund has performed and what fees were charged.


update in accordance with the Financial Markets Conduct Act 2013. This information is not audited and may be updated.


The Fund invests 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. It may include securities of companies traded on recognised exchanges of developing countries.

Investment Objective:

The Fund’s objective is 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 recognized exchanges and/or markets throughout the world.

Benchmark: MSCI All Country World Index (unhedged).

A combination of actual Fund returns and market index returns have been used to determine the risk indicator for the T. Rowe Price Global Equity Growth Fund (inception 21 October 2015), as the Fund has not been operational for the required 5 years. The risk indicator may therefore provide a less reliable indicator of potential future volatility of this Fund.




Annual Return1





Including-



Annual Return Graph2 administration charges3







Jenny had $10,000 in the T. Rowe Price Global Equity Growth Fund at

at the start of the year and did not make any further contributions.

At the end of the year, Jenny received a return, after fund charges

were deducted, of $2,159 (that is 21.59% of her initial $10,000).

This shows the return after Fund charges and tax This gives Jenny a total return after tax of $2,033 for the year.

for each year ending 31 March since the Fund

started.



1.24%

1.24%

1.06%

0.18%

0.00%


administration



Annual Return1


but before tax)

Market index annual

return1

11.29%(reflects no deduction for

charges and tax)

Past Year


and tax)





The market index annual return is based on the weighted average return of the market indices used to measure performance of the underlying fund. In this case the Market Index is MSCI All Country World Index (unhedged). Additional information about the market index is available on the offer register at www.business.govt.nz/disclose.


10.97%

20.33%

11.02%

13.48%

11.29%

8.26%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%


inception


Market Index




this Fund.



Top 10 investments

Country

Amazon.com US

Alphabet Class C US

Alibaba Group Holding CH

Tesla US

Altaba US

Facebook US

Intuit US

Roper Technologies US

TD Ameritrade Holding US

Workday US














Name% of Fund

net assetsType

98.50%

1.50%Acutal Investment Mix


98%

2%Target Investment Mix


Key Personnel

Name

Further information

Notes:












Time in previous

position

Andrew

Bascand

Managing Director &

Portfolio Manager


Portfolio Manager, Alliance

Bernstein

10 Years

You can also obtain this information, the PDS for the T. Rowe Price Global Equity Growth Fund, and





https://www.harbourasset.co.nz/wp-content/uploads/2017/06/SIPO-replacement-June-2017-FINAL.pdf

recognised exchanges and/or markets throughout the world. It may include securities of companies traded on recognised

Price Global Equity Growth Fund (inception 21 October 2015), as

.

$330,777,946

16 February 2009



by this rating.

This risk indicator is not a guarantee of a fund's future performance. The risk indicator is based on the returns data

for the five years to 31 March 2018. While risk indicators are usually relatively stable, they do shift from time to

time. The risk indicator will continue to be updated in future fund updates.



HARBOUR NZ CORPORATE BOND FUND

Fund Update

for the quarter ended 31 March 2018





This document tells you how the Harbour NZ Corporate Bond Fund has performed and what fees were charged. The document will help you compare the Fund with other funds. Harbour Asset Management Limited prepared this update in accordance with the Financial Markets Conduct Act 2013. This information is not audited and may be updated.


The Fund provides access to favourable income yields through a diversified portfolio of primarily investment grade corporate bond fixed interest securities.

Investment Objective: The investment objective of the Fund is to exceed the return of the benchmark portfolio

after fees on a rolling 12 month basis.

Benchmark: S&P/NZX A Grade Corporate Bond Total Return Index.




Average

over past 5

years

Past Year

Annual Return1


and tax)What fees are investors charged?

Annual Return1


but before tax)

Market index annual

return1 Total fund charges (Inc. GST)


charges and tax)Which are made up of:


administration charges

Including-





Example of how this applies to an

investor

Jenny had $10,000 in the Harbour NZ Corporate Bond Fund

at the start of the year and did not make any further

contributions. At the end of the year, Jenny received a

return after fund charges were deducted of $416 (that is

This shows the return after fund charges and tax for each 4.16% of her initial $10,000). This gives Jenny a total

year ending 31 March since the Fund started. The last bar return after tax of $298.


up to 31 Mar 2018. The Market Index Returns do not include


4.72%



0.64%

0.54%

0.10%

0.00%

0.64%

3.15% 2.98%

4.41% 4.16%

4.99%

The market index annual return is based on the weighted average return of the market indices used to measure performance of the underlying fund. In this case the Market Index is the S&P/NZX A Grade Corporate Bond Total Return Index. Additional information about the market index is available on the offer register at www.business.govt.nz/disclose


Investors may also be charged individual action fees for

specific actions or decisions (for example, for

withdrawing from or switching funds). See the PDS and

Other Material Information Document (OMI) for more

Small differences in fees and charges can have a big

impact on your investment over the long term.


6.0

4%

4.5

8%

4.0

4%

4.6

1%

1.8

4%

4.9

8%

4.1

4%

1.8

6%

2.9

8%

3.7

8%

9.9

6%

8.7

7%

6.8

0%

6.6

3%

2.6

7%

8.1

2%

6.4

0%

3.1

3% 4.7

2%

5.9

4%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

Harbour NZ Corporate Bond Fund Market Index




change and if we pursue tacitcal investment opportunities.

Top 10 investments

Name% of Fund

net assetsCountry Credit rating

NZ Local Govt Fund

Agency 04/25 2.75%5.75% NZ AA+


15/04/27 4.50%3.97% NZ AA+

BNZ 25/06/2019 5.57% 3.23% NZ AA-

ASB Bank Limited

26/05/2021 4.245%2.76% NZ AA-

Kommunalbanken AS

28/03/2019 5.00%2.71% NZ AAA

JPMorgan Chase & Co

02/11/2018 4.25%2.29% NZ A-

Rabobank New Zealand

04/09/2018 3.641%2.28% NZ A+

Fonterra Cooperative Grp

20/10/21 4.33%2.10% NZ A-

ANZ 11/05/2020 4.48% 2.03% NZ AA-


14/04/33 3.50%2.00% NZ AA+


Actual asset allocation to 31 Mar 2018. Actual asset allocation will vary from the target asset allocation as

Type

New Zealand fixed

interest

New Zealand fixed

interest

New Zealand fixed

interest

New Zealand fixed

interest

New Zealand fixed

interest

New Zealand fixed

interest

New Zealand fixed

interest

New Zealand fixed

interest

New Zealand fixed

interest

New Zealand fixed

interest

94.11%

5.89%



95%

5%




Key Personnel

NameCurrent

PositionPrevious position

Time in previous

position

Christian

Hawkesby

Simon

Pannett

Further information

Notes:

1. Returns to 31 Mar 2018.

2. The bar chart shows fund returns after the deduction of fees and tax, however the market index returns are shown

before any fees or tax is deducted.

3. Other fees: these charges cover the general management of the Fund e.g. administration, Supervisor, legal, and audit

fees and costs required to comply with relevant legislation. These charges are based on the audited financial

statements for the Fund to 30 June 2017 and includes any applicable GST. More information on these charges can be

found in the PDS and the other material information odcument (OMI) on the Disclose Register.

www.business.govt.nz/disclose


9 years and 1

months

2 years and 4

months



AXA/Alliance Bernstein, Head of

Fixed Interest

Investment

Analyst

Investment Solutions, UK

Investment Analyst

Head of

Fixed

Interest

Bank of England

16 years and 5

monthsMark Brown

Portfolio

Manager

Time in current

position


You can also obtain this information, the PDS for the Harbour NZ Corporate Bond Fund, and some additional












data for the 5 years to 31 March 2018. While risk indicators are usually relatively stable, they do shift from time to time. The risk indicator will continue to be updated in future fund updates.

11 April 2010The date the Fund started






This document tells you how the Harbour Australasian Equity Fund has performed and what fees were charged. The




The Fund provides actively managed exposure to New Zealand and Australian listed equities. This Fund has a growth -oriented investment management approach to generate alpha (return over the benchmark) for investors.

Investment Objective: To achieve a gross return of 5.0% per annum above the benchmark over the long term.

Benchmark: S&P/NZX 50 Index










Including-










a return, after fund charges were deducted, of $2,027


total return after tax of $1,949 for the year.

0.92%

0.00%

0.20%


1.12%


administration1.12%



19.49%

20.27%

Past Year

Average

over past 5

years

16.93%

Annual Return1


charges and tax)

Annual Return1



Market index annual

return1


charges and tax)

14.82%

15.93%

14.89%

The market index annual return is based on the weighted average return of the market indices used to measure performance of the underlying fund. In this case the Market Index is the S&P/NZX50 Index. Additional information about the market index is available on the offer register at www.business.govt.nz/disclose.











-3.4

%

25

.6%

19

.9%

6.4

%

19

.0%

10

.0%

19

.5%

12

.6%

3.6

%

27

.7%

17

.5%

15

.2% 17

.3%

7.9

%

16

.9%

13

.9%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%


Market Index




Top 10 investments


NZ

NZ

AU

2.86%

3.21%

Meridian Energy NZ

% of Fund net assets Type











Name

5.66%

4.78%

4.54%

4.30%

3.49%

CSL

Fisher & Paykel Healthcare

Mainfreight

Spark New Zealand

Contact Energy



Country

NZ

NZ

NZ

A2 Milk 14.50%

6.46%

6.03%

NZ

NZ

NZAuckland Intl Airport

Summerset Group Holdings

Fletcher Building

94.93%

5.07%



98.00%

2.00%




Key Personnel

Name

Further information

Notes:









4. The Fund currently has 22.76% of assets invested in Australian equities. Of this exposure,

we have a 19.97% hedge on these Australian dollar denominated assets.



Asset Management


Bernstein

Senior Vice President &

Portfolio Manager,

Alliance Bernstein

7 years & 3

months

7 years & 2

months

10 Years

Time in previous

positionTime in current position Previous position

Shane Solly

Craig Stent

Andrew

Bascand

Current Position

Managing Director &

Portfolio Manager

Director, Portfolio


Analyst

Executive Director &

Portfolio Manager




You can also obtain this information, the PDS for the Harbour Australasian Equity Fund, and some







harbour australasian equity focus fund fund update · harbour australasian equity focus fund fund...

Documents