Homes and Income
Investment Fund

This fund has 25% growth assets and 75% income assets.


The minimum suggested investment timeframe is 3 years.

Management Fee

0.25%

Why invest in this fund?

A new way to invest in property

Housing is part of the Kiwi DNA. This fund provides exposure to NZ’s residential property sector with a minimum investment of $1000.

Invests for Income and Growth

With a mix of growth and income assets, the primary aim of this fund is to provide investors with competitive risk-adjusted returns.

Access to your money at any time

No minimum investment term, and you can set up regular or one-off withdrawals at any time.

You can make money and do good

Your investment is designed to help fund more warm, dry homes for Kiwi families - helping to address housing issues in NZ.

What this fund invests in

The target asset allocations are 25% in growth assets (rental property) and 75% in income assets (40% cash and cash equivalents, 10% community housing bonds and 25% residential mortgages).

 

The Fund’s objective is to invest in income generating assets such as community housing bonds and residential mortgages, and up to 25% in Simplicity Living, an unlisted build-to-rent property company.

 

This fund will take several years to achieve its target asset allocation, and will have a higher weighting to cash and equivalents as it builds up to its benchmark asset allocations over time.

 

This option is suited to investors seeking steady growth through exposure to the New Zealand residential rental property market and residential mortgages.

Target asset allocation

Performance

0.50%

1 Month

3 Months

1 Year

2 Years

3 Years

5 Years

* These returns are to 31-01-2024 and are before tax and after fund management fees. Yearly returns are per annum. Past performance is not necessarily an indicator of future performance and return periods may differ.

Risk Profile

The risk indicator reflects how much the value of the Fund’s assets goes up and down (volatility). A higher risk generally means higher potential returns over time, but more ups and downs along the way.

1
2
3
4
5
6
7
Lower risk
Higher risk

Note that even the lowest category does not mean a risk-free investment, and there are other risks that are not captured in this rating. This risk indicator is not a guarantee of a fund’s future performance. While risk indicators are usually relatively stable, they do shift from time to time. The risk indicator reflects the most recent quarterly fund update or the PDS if a fund update has not yet been produced and will continue to be updated in future fund updates. See the product disclosure statement (PDS) for more information about the risk indicator and the risks associated with investing in this fund.

Frequently Asked Questions

Why a homes and income fund?

Housing has traditionally been a solid investment for many New Zealanders, either in the form of their own home, or in investment properties. So we are offering this fund with the aim of providing reliable risk-adjusted returns to investors by investing in a combination of shares in Simplicity Living, which builds and operates homes to rent for the long term, first home mortgages (offered to qualifying members), and community housing bonds which fund community housing across New Zealand.

Why invest in a build-to-rent company, first home mortgages, and community housing bonds?

We've been investing in all of these via our KiwiSaver and diversified Investment Funds, and we are now offering investors a fund that focuses specifically on these types of investments as a way to tap into what we believe will be good risk-adjusted returns, and to help increase the supply of homes for New Zealanders over the long term.

Ultimately we believe this fund has the ability to work harder for investors while funding tens of thousands of additional homes across New Zealand.

Does the fund have a fixed interest rate or capital guarantee?

This is a managed investment fund which invests in the existing wholesale Simplicity Property Fund, Simplicity Mortgage Fund, Simplicity Cash Fund and community housing bonds.

There is no fixed rate of return, or capital guarantee. The fund doesn’t distribute income.

The fund will go up and down in value as the investments rise and fall in value.

The fund is valued daily, and as it targets to maintain 40% in cash and equivalent investments, investors have access to their money at any time.

Does the fund distribute income?

No, the fund does not provide income distributions to unit holders - any cashflow generated by the underlying investments is reflected in the net asset value and daily unit price of the fund. You can set up regular withdrawals from the fund and change the amount and frequency of these at any time. Ad-hoc and regular withdrawals are made by selling units (redeeming investments) you hold in the Homes and Income Investment Fund.

What returns can I expect?

The fund return will be a combination of the returns of the underlying funds and direct investments. We cannot accurately predict fund returns.

We are aiming for long returns which are 1% higher than the Bloomberg NZ Bond Bank Bill Index (for cash, mortgages, community housing bonds) and the Auckland House Price Index (for build-to-rent via ownership of shares of Simplicity Living).

For more information see our latest Investment Funds Product Disclosure Statement and Statement of Investment Policy and Objectives (SIPO)

How do you make money from this investment?

The investment achieves returns through income asset investments and any rise (or fall) in the value of shares in Simplicity Living through the valuation of the rental properties it develops and owns/operates.

How do you make money from mortgages?

Investments in mortgages make money from interest payments.

Why does the fund have so much cash?

We want to ensure that there is sufficient liquidity maintained so investors can withdraw their money at any time. And because we have access to wholesale deposit rates, our cash investments have a target return of 1% above 90 day bank bill rates.

What are the fees and how can I access my money?

0.29% per annum, like all our diversified investment funds. No other fees.

Full access to your money at any time. With the ability to set up regular withdrawals.

Is this different from term deposits?

Yes. This is a managed investment fund, not a term deposit.

There is no fixed rate of return, or capital guarantee. The fund doesn’t distribute income.

The fund will go up and down in value as the investments rise and fall in value.

The fund is valued daily, and you have access to all your money at any time, including regular withdrawals.

What investors does this fund suit?

Investors who want:

- a fund with broad exposure to residential property investments i.e. rentals homes, mortgages and housing bonds, across NZ. 
- to provide funding for first home buyers and increase the stock of rental homes and community housing throughout NZ.
- happy to receive some gains and losses via revaluation of shares in Simplicity Living in line with the value of property it holds and development margins it achieves.
- wanting to pay low fees on their investments.

What are some of the risks?

The fund has a risk rating of 3 out of 7, where 7 is the highest risk. 

Some of the potential risks are:

- House prices could fall, impacting the value of properties owned by Simplicity Living, and in turn the value of Simplicity Living shares.
- Properties being developed by Simplicity Living could be worth less than they cost to build, impacting the value of Simplicity Living’s shares.
- Borrowers could default on (not repay) interest and principal on mortgage loans.
- Community Housing providers could default on (not repay) bonds.
- A large proportion of members could withdraw from the fund in a short period, causing us to close the fund and halt withdrawals until underlying investments of the fund can be sold or liquidity improves.

For more information please refer to the Product Disclosure Statement.

Key Documents

Latest Fund Update

This document is produced quarterly and tells you how the fund has performed and what fees were charged and will help you to compare the fund with other funds.

Product Disclosure Statement

This document gives you important information to help you decide whether you want to invest. There is other useful information about this offer on companiesoffice.govt.nz/disclose

Statement of Investment Policy and Objectives (SIPO)

This policy describes Simplicity NZ Limited’s Governing Principles, provides a description of the Scheme, outlines its purpose and philosophy, its investment objectives and policies. It also covers investment performance monitoring and reporting.

Responsible Investment Policy

This policy describes Simplicity NZ Limited’s approach to responsible investment. This policy is to be read alongside our scheme governing documents, including the Statement of Investment Policy and Objectives (“SIPO”), Product Disclosure Statement (“PDS”) and Other Material Information (“OMI”).

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Minutes to join

Grab your IRD number and driver licence or passport, and fill in the form. We’ll do everything else %)