NZ Fund Managers

[Snoopy]

Information on bonus payments that might become due to Harbour Asset Management may be found here.

https://harbourasset.co.nz/assets/Le...nformation.pdf

The Harbour Australasian Equity Fund and Harbour Australasian Equity Focus Fund currently invest directly into wholesale funds managed by us (Harbour Wholesale Funds).

Outperformance is achieved if the Wholesale Fund’s unit price return (with any performance fee accrual added back) is greater than the return of the Wholesale Fund’s performance fee benchmark, plus an additional hurdle of 1% pa (calculated and accrued within the daily unit price).

For the Australasian Equity Fund, the Wholesale Fund’s performance fee benchmark is a composite index of 50% of the NZX 50 Net Index (does not include imputation credits) and 50% of the ASX 200 Index (which is 50% hedged into NZ dollars). The High Water Mark unit price is exceeded if the Wholesale Fund’s unit price, on 31 December of any year, is greater than the Wholesale Fund’s current High Water Mark unit price.

The concept of a High Water Mark exists so that the fund managers are not paid twice for creating growth that only covers previous losses.

The performance fee comprises 10% of the outperformance. The performance fee is capped at 10% of the outperformance. That is, the maximum performance fee that we can be paid is 0.90% ((10% outperformance cap less 1% benchmark hurdle) x 10% performance fee = 0.90%).

Other fees (which include performance fees) are listed as 'not applicable' to the two NZ based index based equity tracking funds. Similarly there is no bonus fee listed as applicable to the "Harbour Real Estate Investment Fund".

SNOOPY