Low yields.

[Nor]

Nor do the managers disclose any information from which the value they assign to the bonds they hold can be worked out. One can only work out the total value of each bond that they hold.
Some Bonds have no maturity Snoopy.
Well I'm assuming spec prefs count as Bonds but maybe wrong must check.

[GTM 3442]

You should be able to get a list of holdings from the Companies Office Disclose Register website.

https://disclose-register.companiesoffice.govt.nz/

[Nor]

Thanks G. I have just downloaded

https://smartinvestor.sorted.org.nz/...Z_Bond_ETF.csv

but can't open a .csv

[Snoopy]

Thanks G. I have just downloaded

https://smartinvestor.sorted.org.nz/...Z_Bond_ETF.csv

but can't open a .csv

Here is the csv link opened. I count 105 bond constituents.

DISCLOSE REGISTER - FULL PORTFOLIO HOLDINGS 1
Offer name Smartshares Exchange Traded Funds Offer number OFR10865
Fund name Smartshares NZ Bond ETF (NZB) Fund number FND1103
Period disclosure applies [dd/mm/yyyy] 31/05/2023

Asset name	% of fund net assets	Security code
New Zealand Government 0.50% 15/05/2024	6.9373	NZGOVDT524C5
Housing New Zealand Ltd 4.422% 15/10/2027	4.8895	NZHNZD0008L2
Nz Local Govt Fund Agenc 1.50% 15/04/2026	3.2985	NZLGFDT014C0
Nz Local Govt Fund Agenc 3.50% 14/04/2033	3.1681	NZLGFDT009C0
Housing New Zealand Ltd 2.247% 5/10/2026	3.0352	NZHNZD0001L7
Housing New Zealand Ltd 1.534% 10/09/2035	3.0312	NZHNZD0935L6
Housing New Zealand Ltd 3.42% 18/10/2028	3.01	NZHNZD0628L7
Housing New Zealand Ltd 2.183% 24/04/2030	2.9979	NZHNZD0230L2
Kommunalbanken As 4.00% 20/08/2025	2.7749	NZKBNDT009C6
Bank Of New Zealand 5.536% 25/05/2028	2.4483	NZBNZDT402C6
Genesis Energy Ltd 5.00% 3/04/2025	2.1255	NZGNEDT007C3
ANZ NZD Current Account	1.8554
Transpower New Zealand 1.735% 4/09/2025	1.7288	NZTRPD0070L9
Fonterra Cooperative Grp 5.08% 19/06/2025	1.6924	NZFCGDT310C3
NZ Local Govt Fund Agenc 4.50% 15/05/2030	1.6559	NZLGFDT020C7
Tr Group Ltd 4.533% 7/03/2024	1.4554	NZTRGD0324L9
Kiwibank Ltd 2.635% 5/10/2026	1.4396	NZKIWD1026L4
Chorus Ltd 4.35% 6/12/2028	1.4369	NZCNUDT003C6
Kiwibank Ltd 2.155% 20/09/2024	1.3629	NZKIWD0924L1
Kfw 1.75% 19/05/2028	1.3602	NZKFZDT004C9
Asian Development Bank 2.125% 19/05/2031	1.2932	NZADBDT013C2
NZ Local Govt Fund Agenc 2.25% 15/05/2028	1.2865	NZLGFDT018C1
NZ Local Govt Fund Agenc 4.50% 15/04/2027	1.2855	NZLGFDT007C4
Asian Development Bank 4.00% 27/05/2027	1.2565	NZADBDT016C5
Dunedin City Treasury 1.93% 18/04/2028	1.2552	NZDCTDT199C7
Vector Ltd 1.575% 6/10/2026	1.2276	NZVCTDT011C2
Christchurch City Hldgs 5.043% 6/04/2028	1.2108	NZCCHDT901C1
Vector Ltd 4.996% 14/03/2024	1.2073	NZVCTDT009C6
Intl Bk Recon & Develop 4.25% 29/07/2027	1.1978	NZIBDDT020C9
Intl Finance Corp 4.375% 13/09/2027	1.1971	NZIFCDT014C9
Asian Development Bank 3.75% 18/08/2025	1.1847	NZADBDT017C3
Anz Bank New Zealand Ltd 5.22% 16/02/2028	1.175	NZANBDT025C4
ASB Bank Limited 1.83% 19/08/2024	1.157	NZABBDG004C8
Kiwibank Ltd 5.737% 19/10/2027	1.1297	NZKIWD1027L2
European Investment Bank 1.875% 16/06/2028	1.0576	NZEIBDT006C7
Powerco Limited 4.67% 15/11/2024	0.9807	NZPWCDT009C9
ASB Bank Limited 1.646% 4/05/2026	0.9301	NZABBDG005C5
Net Current Assets	0.9167
NZ Local Govt Fund Agenc 2.75% 15/04/2025	0.8814	NZLGFDT008C2
Auckland Council 3.338% 27/07/2026	0.8403	NZAKCDT410C0
Mtfnz P21 A 6.50% 15/06/2029	0.836	NZPANTFAT019
Asian Development Bank 1.50% 6/08/2026	0.7645	NZADBDT014C0
Auckland Intl Airport 5.67% 9/05/2028	0.7619	NZAIAD0250L8
Bank Of New Zealand 1.884% 8/06/2026	0.7592	NZBNZDT397C8
Intl Finance Corp 4.875% 13/12/2029	0.7446	NZIFCDT015C6
Westpac New Zealand Ltd 1.439% 24/02/2026	0.7403	NZWNZD0226L9
Inter-American Devel Bk 4.75% 25/01/2030	0.733	NZIDBDT010C0
Intl Bk Recon & Develop 4.625% 2/02/2028	0.7302	NZIBDDT021C7
Wellington Intl Airport 4.00% 1/04/2030	0.722	NZWIAD0060L5
Dunedin City Treasury 3.79% 16/10/2024	0.7082	NZDCTDT135C1
Auckland Council 4.176% 24/03/2025	0.6539	NZAKCDT363C1
GMT Bond Issuer Ltd 3.656% 20/12/2027	0.6424	NZGMBDT008C5
Intl Bk Recon & Develop 0.75% 10/06/2026	0.6281	NZIBDDT016C7
Heartland Bank Ltd 3.55% 12/04/2024	0.6113	NZHBLD0020L2
Bank Of New Zealand 2.16% 29/01/2025	0.5724	NZBNZDT396C0
Auckland Intl Airport 3.97% 2/11/2023	0.5631	NZAIADT210L1
Intl Bk Recon & Develop 2.875% 30/11/2026	0.5187	NZIBDDT019C1
Wellington Intl Airport 2.50% 14/08/2026	0.4937	NZWIAD0070L4
Kiwi Property Group Ltd 4.06% 12/11/2025	0.4917	NZKPGD0040L4
Mtfnz O23 A 7.25% 16/09/2030	0.4851	NZOPATFAT017
Nordic Investment Bank 4.375% 21/02/2030	0.4774	NZNIBDT013C2
Westpac New Zealand Ltd 2.22% 29/07/2024	0.4762	NZWNZD0724L3
L-Bank Bw Foerderbank 4.00% 15/04/2027	0.4689	NZLBKDT003C1
New Zealand Government 2.75% 15/05/2051	0.4665	NZGOVDT551C8
Blunz 2022-2 A1L 7.45% 16/02/2054	0.463	NZBSNC1002R1
New Zealand Government 4.50% 15/04/2027	0.4578	NZGOVDT427C1
Toyota Fin New Zealand 1.73% 6/09/2024	0.4471	NZTFSDT727C5
New Zealand Government 2.75% 15/04/2025	0.4408	NZGOVDT425C5
New Zealand Government 0.25% 15/05/2028	0.4375	NZGOVDT528C6
Wellington Intl Airport 3.32% 24/09/2031	0.4276	NZWIAD0080L3
Dunedin City Treasury 0.676% 16/11/2026	0.4148	NZDCTDT191C4
New Zealand Government 3.00% 20/04/2029	0.4142	NZGOVDT429C7
Bank New Zealand Ltd 2.999% 17/09/2031	0.4098	NZANBDT024C7
Meridian Energy Limited 5.91% 20/09/2028	0.398	NZMELDT096C0
Kiwi Property Group Ltd 4.33% 19/12/2024	0.3775	NZKPGD0030L5
Resnz 2022-1 A1 7.65% 16/06/2054	0.3729	NZRVGA1035R9
Auckland Council 2.013% 10/07/2025	0.3635	NZAKCDT484C5
Contact Energy Ltd 3.55% 15/08/2024	0.352	NZCEND0050L0
Udcau 2022-1 A 7.50% 20/12/2029	0.3471	NZUDCDB001R0
Dunedin City Treasury 3.22% 27/11/2028	0.3355	NZDCTDT211C0
Dunedin City Treasury 2.09% 15/11/2026	0.3274	NZDCTDT173C2
Port Of Tauranga Ltd 1.02% 29/09/2025	0.3262	NZPOTD0925L1
New Zealand Government 0.50% 15/05/2026	0.324	NZGOVDT526C0
Chorus Ltd 2.51% 2/12/2030	0.3153	NZCNUDT005C1
Christchurch City Hldgs 3.58% 27/11/2024	0.3057	NZCCHDT853C4
Auckland Council 2.95% 28/09/2050	0.3011	NZAKCDT520C6
NZ Local Govt Fund Agenc 2.00% 15/04/2037	0.2669	NZLGFDT016C5
Christchurch Intl Airpor 4.13% 24/05/2024	0.2635	NZCHCDT004C4
NZ Local Govt Fund Agenc 2.25% 15/05/2031	0.2564	NZLGFDT017C3
Insurance Australia Grp 5.32% 15/06/2038	0.2396	NZIAGDT004C1
Dunedin City Treasury 3.98% 15/04/2026	0.2344	NZDCTDT109C6
Westpac New Zealand Ltd 2.083% 20/02/2025	0.2334	NZWNZD0225L1
GMT Bond Issuer Ltd 4.74% 14/04/2027	0.2309	NZGMBDT009C3
AvANZ 2022-1 A1 7.30% 15/07/2054	0.2079	NZAVGA1001R7
GMT Bond Issuer Ltd 4.00% 1/09/2023	0.20	NZGMBDT005C1
NZ Local Govt Fund Agenc 2.25% 15/04/2024	0.1996	NZLGFDT011C6
Kiwi Property Group Ltd 4.00% 7/09/2023	0.1936	NZKPGD0020L6
GMT Bond Issuer Ltd 4.54% 31/05/2024	0.1868	NZGMBDT004C4
Westpac New Zealand Ltd 3.696% 16/02/2027	0.1701	NZWNZD0227L7
SBS Bank 4.32% 18/03/2027	0.1625	NZSBBDT297C3
Fonterra Cooperative Grp 4.15% 14/11/2025	0.1616	NZFCGDG005C4
Tr Group Ltd 3.532% 5/10/2026	0.1528	NZTRGD1026L9
NZ Local Govt Fund Agenc 1.50% 20/04/2029	0.1348	NZLGFDT012C4
Bank New Zealand Ltd 3.03% 20/03/2024	0.0998	NZANBDT023C9
Bank Of New Zealand 4.985% 7/06/2027	0.0752	NZBNZDT401C8
NZ Local Govt Fund Agenc 3.00% 15/05/2035	0.0461	NZLGFDT019C9
Outstanding settlements	-1.5066

SNOOPY

[Snoopy]

Nor do the managers disclose any information from which the value they assign to the bonds they hold can be worked out. One can only work out the total value of each bond that they hold.

For post 10 (uncompleted as I write this), I envisaged taking the 'fund yield' and comparing that to the 'market yield' to get an indication of the capital losses realized by selling down the bond portfolio. It would be an approximate result. But I wouldn't need to know the details of the bond portfolio to calculate a figure.

Some Bonds have no maturity Snoopy.
Well I'm assuming spec prefs count as Bonds but maybe wrong must check.

Check out the total portfolio holding in post 14. All the bonds held seem to have maturity dates.

SNOOPY

[Nor]

But it only shows the percentage of their total value in each bond. Can't work out what value they assume for any bond with the information.

[Snoopy]

But it only shows the percentage of their total value in each bond. Can't work out what value they assume for any bond with the information.

Yes. But if you look at the NZX 'daily NTA' announcement for this fund on 31st May 2023 (issued on 1st June 2023) , NZB discloses that there were 144,077,077 units on issue on that day valued at $2.87196 dollar per unit. So the total value of the fund on that date was:

$2.87196 x 144,077,077 = $413,783,602

Using that as the 100% figure, you can work out the dollar value of the individual constituents because you know the percentage value that each constituent makes, as a part of the total value of the fund. For example the cash balance in the ANZ bank on that day was:

0.018554 x $413,783,602 = $7.677m

SNOOPY

[GTM 3442]

At its simplest and crudest, the basic equation of bond funds is a pre-tax yield of 4%, with a management fee of 1%.

This is factually inaccurate but emotionally correct.

[Nor]

Yes I know that, but you can't see how many of each bond they have, which means you have nothing to divide 'the dollar value of the individual constituent' by to find out what they consider to be its unit worth.
So it is unknown if they are 'marking to market' or still valuing them at face value. The low yield would be explained by not marking to market.

Intended reply to Snoopy one above

[Snoopy]

It is unknown if they are 'marking to market' or still valuing them at face value. The low yield would be explained by not marking to market.

If you look at the 31st July 2023 monthly report here
https://smartshares.co.nz/types-of-f...sh/nzbondtrust

Under 'Portfolio Characteristics', the fund yield is listed as 5.59%. If I look at the portfolio constituents from post 14, there is only one bond with a coupon rate greater than that: Meridian Energy's 5.91% bond. This indicates to me that the capital value of those lower interest rate bonds must have been marked down.

There is no other way to achieve a 5.59% current portfolio yield, unless these mark downs were done.

You can't see how many of each bond they have, which means you have nothing to divide 'the dollar value of the individual constituent' by to find out what they consider to be its unit worth.

I am wondering if you need to know that? We don't know which constituents NZB are buying or selling either - as unitholders opt to put more money into NZB or take it out.

But if we know:
a/ The weighted average interest rate of the entire NZB portfolio and, as an example,
b/ A reference government stock rate which is changing but can be pinpointed on a particular day (say the five year rate),

THEN we can work out the average capital loss carried by the whole NZB fixed interest portfolio. This was the way I was considering tackling the valuation problem.

SNOOPY