The Foundation Series Hedged US 500 Fund (the Fund) is a PIE offered as part of the Foundation Series Funds managed investment scheme. FundRock NZ Limited is the issuer and manager of the Fund. InvestNow Saving and Investment Service Limited (InvestNow) has been appointed as the investment manager. The Fund provides investors with access to a low-cost portfolio of shares in the largest companies listed on stock markets in the United States through an underlying exchange traded fund (ETF). The Fund aims to perform broadly in line with its investment benchmark before fees and tax over the long term, while targeting full hedging of foreign currency exposure back to the New Zealand dollar.
Investment Manager
InvestNow Saving and Investment Service Limited.
Investment Policy and Objectives
The Fund aims for high long-run returns by investing in an underlying ETF that provides exposure to shares of the largest companies listed on stock markets in the United States. Its objective is to perform broadly in line with the return of the Morningstar US Target Market Exposure TR Hedged NZD Index before fees and tax over the long term. The Fund targets a fully hedged foreign currency position relative to the New Zealand dollar.
Investment Strategy
The Fund invests in an underlying ETF selected by InvestNow, providing broad exposure to large United States companies across a range of sectors and industries. The Fund follows a passive investment approach designed to track the performance of its benchmark rather than actively selecting individual securities. Foreign currency exposure is targeted to be 100% hedged to the New Zealand dollar, helping reduce the impact of exchange rate movements on investment returns.
The Fund's investment approach is based on the following principles:
Broad diversification across leading United States companies.
Low-cost passive exposure to the US share market.
Long-term investment focused on benchmark tracking.
Currency exposure targeted to be fully hedged to the New Zealand dollar.
Efficient market access through an underlying ETF structure.
Benchmark
The Fund's investment benchmark is the Morningstar US Target Market Exposure TR Hedged NZD Index.
Minimum Investment Timeframe
7 years.
Further Information
Fund updates for previous quarters are available on the Disclose Register. Choose ‘Search for an offer’ and search for ‘Foundation Series Funds’ as the Offer name at https://disclose-register.companiesoffice.govt.nz.
