# PG High Conviction Fund **Provider:** PG Investments (https://pginvestments.nz) **Source:** https://wholesaleinvestor.co.nz/funds/pg-high-conviction-fund **Facts JSON:** https://wholesaleinvestor.co.nz/api/im/pg-high-conviction-fund/facts.json > This document is a machine-readable concatenation of 2 extracted document(s) for AI/LLM grounding. The original PDFs are linked in each section. > Wholesale-only — for eligible investors per FMCA Schedule 1. WI does not republish manager performance numbers; verify with the manager. --- ## PDS **Source PDF:** https://pginvestments.nz/2026-03-pg-funds-pds/ **Published:** 2026-03-01 **Pages:** 22 **Extracted via:** pdftotext on 2026-05-19 DATE OF ISSUE / 31 MARCH 2026 Product Disclosure Statement This document gives you important information about this investment to help you decide whether you want to invest. There is other useful information about this offer on www.disclose-register.companiesoffice.govt.nz. PG Funds has prepared this document in accordance with the Financial Markets Conduct Act 2013. You can also seek advice from a financial advice provider to help you make an investment decision. This replacement Product Disclosure Statement supersedes the Product Disclosure Statement dated 14 August 2025. ISSUED BY PG FUNDS LIMITED PERPETUAL GUARDIAN INVESTMENTS 01. Key Information Summary What is this? This is a managed investment scheme. Your money will be pooled with other investors’ money and invested in various investments. PG Funds Limited (PG Funds, we, us or our) will invest your money and charge you a fee for its services. The returns you receive are dependent on the investment decisions of PG Funds and the performance of the investments. The value of those investments may go up or down. The types of investments and the fees you will be charged are described in this document. WHAT WILL YOUR MONEY BE INVESTED IN? The PG Funds scheme offers five Funds for you to invest in. This Product Disclose Statement covers the Funds in the summarised table below. More information about the investment target and strategy for each Fund is provided in Section 3 “Description of your investment options” PG STRATEGIC PG HIGH PG INCOME GROWTH FUND CONVICTION FUND OPPORTUNITIES FUND The Fund’s primary objective The Fund aims is to achieve is to achieve long-term capital long-term capital growth by investing The Fund aims to provide appreciation through strategic predominantly in international a higher level of income from investment in a select group of equities, including Exchange a diversified investment portfolio of New Zealand and Australian Traded Funds (ETFs) listed equity and fixed income securities equities. The strategy allows the alongside moderate capital growth throughout the world. Fund to navigate market fluctuations over the long-term. while aiming for sustained growth over extended periods. RISK INDICATOR¹ RISK INDICATOR¹ RISK INDICATOR ¹ POTENTIALLY POTENTIALLY POTENTIALLY POTENTIALLY POTENTIALLY POTENTIALLY LOWER RETURNS HIGHER RETURNS LOWER RETURNS HIGHER RETURNS LOWER RETURNS HIGHER RETURNS 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 LOWER RISK HIGHER RISK LOWER RISK HIGHER RISK LOWER RISK HIGHER RISK ESTIMATED ANNUAL ESTIMATED ANNUAL ESTIMATED ANNUAL FUND CHARGES* FUND CHARGES* FUND CHARGES 1.20% 1.20% 0.95% PRODUCT DISCLOSURE STATEMENT / 01 PERPETUAL GUARDIAN INVESTMENTS 01. Key Information Summary continued PG GLOBAL PG NEW ZEALAND ALTERNATIVES FUND BOND FUND The Fund aims to deliver attractive long-term returns by investing in a diversified portfolio of global alternative assets. These may include, but are not limited to, The Fund is designed to provide alternative equity strategies, absolute return Funds, and other non-traditional regular income from predominantly investments. The Fund is designed to complement traditional equity and bond New Zealand investment grade holdings by providing exposure to differentiated sources of return with a focus on corporate bonds. capital growth, diversification, and risk-adjusted outcomes. RISK INDICATOR¹ RISK INDICATOR¹ POTENTIALLY POTENTIALLY POTENTIALLY POTENTIALLY LOWER RETURNS HIGHER RETURNS LOWER RETURNS HIGHER RETURNS 1 2 3 4 5 6 7 1 2 3 4 5 6 7 LOWER RISK HIGHER RISK LOWER RISK HIGHER RISK ESTIMATED ANNUAL ESTIMATED ANNUAL FUND CHARGES* FUND CHARGES 1.67% 0.65% 1. The risk indicator is based on the market index over the five years to 31 March 2025, as the Fund did not exist at a retail level before this PDS. As a result, it may be a less reliable indicator of the Fund’s potential future volatility. See Section 4 “What are the risks of investing?” for an explanation of the risk indicator and for information about other risks that are not included in the risk indicator. To help you clarify your own attitude to risk, you can seek financial advice or use the risk profiler tool at www.sorted.org.nz/tools/investor-kickstarter. *The estimated annual Fund charges for the PG Strategic Growth Fund, PG High Conviction Fund and PG Global Alternatives Fund include estimated performance-based fees. See Section 5 “What are the fees?” for more information on these fees. WHO MANAGES THE FUNDS? The manager of the Funds is PG Funds. See Section 7 “Who is involved” for more information. WHAT ARE THE RETURNS? The return on your investment comes from a combination of any increase or decrease in the value of your units in the Funds, which reflects changes in the value of the underlying assets of the Funds. Some Funds may also pay monthly distributions. See Section 3 “Description of your investment options” for further details on which Funds pay distributions. HOW CAN YOU GET YOUR MONEY OUT? Your investment in the Funds is redeemable. Minimum and maximum redemption amounts may apply, and redemption requests must be made by logging into the online portal at pginvestments.admins.co.nz and selecting the sell button which will list the investment(s) you own. We may also suspend or defer redemptions in certain circumstances (where we in conjunction with the Supervisor believe it would not be practicable to redeem). PRODUCT DISCLOSURE STATEMENT / 02 PERPETUAL GUARDIAN INVESTMENTS 01. Key Information Summary continued Further information about redeeming your investment can be found in Section 2 (How does this investment work?). Your investment in the Funds can be sold but there is no established market for trading these financial products. This means that you may not be able to find a buyer for your investment. HOW WILL YOUR INVESTMENT BE TAXED? The Funds under the Scheme are all portfolio investment entities (PIEs). The amount of tax you pay in respect of a PIE is based on your prescribed investor rate (PIR). To determine your PIR, go to www.ird.govt.nz/roles/portfolio-investment-entities/using-prescribed-investor-rates. See Section 6 (What taxes will you pay?) for more information. WHERE CAN YOU FIND MORE KEY INFORMATION? PG Funds is required to publish quarterly updates for each Fund. The updates show the returns, and the total fees actually charged to investors, during the previous year. The latest Fund updates are available at pginvestments.nz. PG Funds will also give you copies of those documents on request. PRODUCT DISCLOSURE STATEMENT / 03 Product Disclosure Statement contents 01 KEY INFORMATION SUMMARY 1 02 HOW DOES THIS INVESTMENT WORK? 5 03 DESCRIPTION OF YOUR INVESTMENT OPTIONS 7 04 WHAT ARE THE RISKS OF INVESTING? 13 05 WHAT ARE THE FEES? 15 06 WHAT TAXES WILL YOU PAY? 18 07 WHO IS INVOLVED? 18 08 HOW TO COMPLAIN 19 09 WHERE YOU CAN FIND MORE INFORMATION 19 10 HOW TO APPLY 20 PERPETUAL GUARDIAN INVESTMENTS / 04 PERPETUAL GUARDIAN INVESTMENTS 02. How does this Investment Work Legal structure of the Funds The PG Funds Scheme is a managed investment scheme, and each Fund is established as a trust, governed by a trust deed. The trust deeds are available at www.disclose-register.companiesoffice.govt.nz. A managed investment scheme allows your money to be pooled with that of other investors, giving you access to a potentially wider range of investments. The assets of one Fund are not available to meet the liabilities of any other Fund established by PG Funds. Your investments are held independently of PG Funds by Adminis NZ Limited as independent custodian, meaning it holds the assets on your behalf. The New Zealand Guardian Trust Company Limited is the Supervisor of the Funds. Their role as Supervisor of the Funds is to actively supervise PG Funds’ performance of its functions and issuer obligations, and the financial position of PG Funds and each of the Funds. Each Fund is divided into units and you invest by buying units. The more you invest the more units you get. Each unit is of equal value and each unit shares equally in the gains and losses, income and expenses of the relevant Fund. The value of units goes up and down according to the changing value of the assets, less liabilities, in the Funds. The units do not give you legal ownership of the Fund’s assets but they do give you rights to the returns from the assets. DISTRIBUTIONS Some of the Funds pay distributions. Distributions are cash payments of a portion of the income earnt by the Fund. Distributions are paid to your nominated bank account, or reinvested in further units. Buy / Sell spreads (detailed in Section 5 “What are the fees?”) are not applied to distributions. See Section 3 “Description of your investment options” for further details on which Funds pay distributions. INVESTMENT PHILOSOPHY We believe sound investment returns to investors can be made through effective assessment of both quantitative and qualitative measures to identify companies and investments. We have our own signposts through our investment approach to identify high-quality companies for investment and likewise, warning signs that help us ward off undesirable investments. MAKING INVESTMENTS You can make an investment in a Fund by completing the online application form at pginvestments.nz. The current minimum amounts you can invest into the PG Funds Scheme is $1,000. WITHDRAWING YOUR INVESTMENTS You can withdraw all or part of your investment in a Fund at any time by logging into the online portal at pginvestments. admins.co.nz and selecting the sell button which will list the investment(s) you own. You may sell either a dollar or unit amount. Withdrawals will normally be processed and payment occur within 10 business days of receipt of the completed withdrawal process. PRODUCT DISCLOSURE STATEMENT / 05 PERPETUAL GUARDIAN INVESTMENTS 02. How does this Investment Work continued We may, with prior notice to the Supervisor, suspend withdrawal requests or defer payment of withdrawals where, due to certain circumstances arising (for examples, political or market conditions), we form the opinion that it is not practicable, or would be prejudicial to the general interests of unitholders, or that suspension is desirable for the Fund(s). The Funds have the below maximum redemption gates per investor account. FUND NAME MAXIMUM REDEMPTION GATE PERIOD PG Strategic Growth Fund $10 million Rolling four weeks PG High Conviction Fund $10 million Rolling four weeks PG Income Opportunities Fund $10 million Rolling four weeks PG Global Alternatives Fund $10 million Rolling four weeks PG New Zealand Bond Fund $10 million Rolling four weeks HOW TO SWITCH BETWEEN FUNDS You can switch between Funds. This will be considered a withdrawal from one Fund and an application for units in another Fund. All the conditions and restrictions on applications and withdrawals will apply. PRODUCT DISCLOSURE STATEMENT / 06 PERPETUAL GUARDIAN INVESTMENTS 03. Description of your Investment Options PG STRATEGIC GROWTH FUND PG HIGH CONVICTION FUND PG INCOME OPPORTUNITIES FUND PG GLOBAL ALTERNATIVES FUND PG NEW ZEALAND BOND FUND PERPETUAL GUARDIAN INVESTMENTS / 07 PERPETUAL GUARDIAN INVESTMENTS PG Strategic Growth Fund POTENTIALLY POTENTIALLY LOWER RETURNS HIGHER RETURNS Risk Indicator* 1 2 3 4 5 6 7 LOWER RISK HIGHER RISK OBJECTIVE / DESCRIPTION The Fund aims to achieve long-term capital growth by predominantly investing in international equities, including Exchange Traded Funds (ETFs) listed globally. INVESTMENT STRATEGY The Fund follows an active management strategy, investing in a concentrated portfolio of typically 10 to 50 predominantly international companies. This focused approach enables selective investment decisions and avoids passive replication of any specific index. While the primary focus is on international markets, the Fund may also invest in Australasian equities when opportunities arise. It is generally expected to be fully invested; however, the Fund may hold cash or cash equivalents at times to manage risk and maintain flexibility. The overarching objective is to achieve long-term capital growth through careful selection and active management of high-quality global investment opportunities. ASSET CLASS TARGET Cash and Cash Equivalents 2% International Equities 98% MINIMUM RECOMMENDED HORIZON 5 years PERFORMANCE BENCHMARK MSCI World Index (Price Return, in NZD) While the Fund uses this as a benchmark, it is managed without strictly following or being tied to it. DISTRIBUTIONS Monthly distributions will be paid where income from underlying investments are available. *The risk indicator is based on the market index over the five years to 31 March 2025, as the Fund did not exist at a retail level before this PDS. As a result, it may be a less reliable indicator of the Fund’s potential future volatility. See Section 4 “What are the risks of investing?” for an explanation of the risk indicator and for information about other risks that are not included in the risk indicator. To help you clarify your own attitude to risk, you can seek financial advice or use the risk profiler tool at www.sorted.org.nz/tools/investor-kickstarter. PRODUCT DISCLOSURE STATEMENT / 08 PERPETUAL GUARDIAN INVESTMENTS PG High Conviction Fund POTENTIALLY POTENTIALLY LOWER RETURNS HIGHER RETURNS Risk Indicator* 1 2 3 4 5 6 7 LOWER RISK HIGHER RISK OBJECTIVE / DESCRIPTION The Fund’s primary objective is to achieve long-term capital appreciation through strategic investment in a select group of New Zealand and Australian equities. The strategy allows the Fund to navigate market fluctuations while aiming for sustained growth over extended periods. INVESTMENT STRATEGY The Fund employs an active management strategy, focusing on a select group of typically 10 to 30 companies listed in Australia and New Zealand. This focused approach enables careful selection and management of investments, rather than passively replicating an index. While the Fund primarily invests in Australasian markets, it retains the ability to invest in shares listed outside this region. It is generally expected to be fully invested; however, cash or cash equivalents may be held at times to reduce risk and increase flexibility. The primary objective of the Fund is to achieve long-term capital growth. ASSET CLASS TARGET Cash and Cash Equivalents 2% Australasian Equities 98% MINIMUM RECOMMENDED HORIZON 5 years PERFORMANCE BENCHMARK 50% S&P / NZ All Shares (Price Return, in NZD) 50% S&P / ASX 200 (Price Return, in NZD) While the Fund uses this as a benchmark, it is managed without strictly following or being tied to it. DISTRIBUTIONS Monthly distributions will be paid where income from underlying investments are available. *The risk indicator is based on the market index over the five years to 31 March 2025, as the Fund did not exist at a retail level before this PDS. As a result, it may be a less reliable indicator of the Fund’s potential future volatility. See Section 4 “What are the risks of investing?” for an explanation of the risk indicator and for information about other risks that are not included in the risk indicator. To help you clarify your own attitude to risk, you can seek financial advice or use the risk profiler tool at www.sorted.org.nz/tools/investor-kickstarter. PRODUCT DISCLOSURE STATEMENT / 09 PERPETUAL GUARDIAN INVESTMENTS PG Income Opportunities Fund POTENTIALLY POTENTIALLY LOWER RETURNS HIGHER RETURNS Risk Indicator* 1 2 3 4 5 6 7 LOWER RISK HIGHER RISK OBJECTIVE / DESCRIPTION The Fund aims to provide a higher level of income from a diversified investment portfolio of equity and fixed income securities, alongside moderate capital growth over the long term. INVESTMENT STRATEGY The Fund combines quantitative analysis with qualitative, fundamental research across Australasian investments. It primarily invests in select equities that typically offer compelling dividend yields, fixed interest securities, and cash. Through this approach, the Fund provides diversification of investment types and income streams, offering investors the potential for regular distributions. ASSET CLASS TARGET Cash and Cash Equivalents 2% Australasian Equities 50% New Zealand Fixed Interest 48% MINIMUM RECOMMENDED HORIZON 3 years PERFORMANCE BENCHMARK NZ Official Cash Rate + 2.5% DISTRIBUTIONS Monthly distributions will be paid where income from underlying investments are available. *The risk indicator is based on the market index over the five years to 31 March 2025, as the Fund did not exist at a retail level before this PDS. As a result, it may be a less reliable indicator of the Fund’s potential future volatility. See Section 4 “What are the risks of investing?” for an explanation of the risk indicator and for information about other risks that are not included in the risk indicator. To help you clarify your own attitude to risk, you can seek financial advice or use the risk profiler tool at www.sorted.org.nz/tools/investor-kickstarter. PRODUCT DISCLOSURE STATEMENT / 10 PERPETUAL GUARDIAN INVESTMENTS PG Global Alternatives Fund POTENTIALLY POTENTIALLY LOWER RETURNS HIGHER RETURNS Risk Indicator* 1 2 3 4 5 6 7 LOWER RISK HIGHER RISK OBJECTIVE / DESCRIPTION The Fund aims to deliver attractive long-term returns by investing in a diversified portfolio of global alternative strategies through managed Funds. These may include, but are not limited to long/short strategies, event-driven strategies, futures strategies and market neutral style premia strategies. The Fund is designed to complement traditional equity and bond holdings by providing exposure to differentiated sources of return, with a focus on capital growth, diversification, and risk-adjusted outcomes. INVESTMENT STRATEGY The Fund employs an active, multi-asset strategy focused on identifying and allocating capital to a carefully selected group of global alternative investments. It invests through external Fund managers who demonstrate strong alignment with the Fund’s objectives, possess specialist expertise, and maintain a disciplined investment process. External managers are selected based on rigorous due diligence, including assessment of their track record, investment philosophy, risk management practices, and structural alignment with investors. ASSET CLASS TARGET Cash and Cash Equivalents 2% Other 98% MINIMUM RECOMMENDED HORIZON 5 years PERFORMANCE BENCHMARK NZ Official Cash Rate + 3% DISTRIBUTIONS None *The risk indicator is based on the market index over the five years to 31 March 2025, as the Fund did not exist at a retail level before this PDS. As a result, it may be a less reliable indicator of the Fund’s potential future volatility. See Section 4 “What are the risks of investing?” for an explanation of the risk indicator and for information about other risks that are not included in the risk indicator. To help you clarify your own attitude to risk, you can seek financial advice or use the risk profiler tool at www.sorted.org.nz/tools/investor-kickstarter. PRODUCT DISCLOSURE STATEMENT / 11 PERPETUAL GUARDIAN INVESTMENTS PG New Zealand Bond Fund POTENTIALLY POTENTIALLY LOWER RETURNS HIGHER RETURNS Risk Indicator* 1 2 3 4 5 6 7 LOWER RISK HIGHER RISK OBJECTIVE / DESCRIPTION The Fund is designed to provide regular income from predominantly New Zealand investment grade corporate bonds. INVESTMENT STRATEGY The Fund predominantly invests in select New Zealand corporate fixed interest securities. It employs active duration management, adjusting the portfolio’s sensitivity to interest rate changes based on market conditions and economic outlooks. This approach allows for tactical positioning in response to anticipated interest rate movements, potentially enhancing returns and mitigating risks associated with bond price fluctuations. ASSET CLASS TARGET New Zealand Fixed Interest 100% MINIMUM RECOMMENDED HORIZON 3 years PERFORMANCE BENCHMARK Bloomberg NZ Bond Composite 0+ Yr (Total Return, in NZD) DISTRIBUTIONS Monthly distributions will be paid where income from underlying investments are available. *The risk indicator is based on the market index over the five years to 31 March 2025, as the Fund did not exist at a retail level before this PDS. As a result, it may be a less reliable indicator of the Fund’s potential future volatility. See Section 4 “What are the risks of investing?” for an explanation of the risk indicator and for information about other risks that are not included in the risk indicator. To help you clarify your own attitude to risk, you can seek financial advice or use the risk profiler tool at www.sorted.org.nz/tools/investor-kickstarter. STATEMENT OF INVESTMENT POLICY AND OBJECTIVES (SIPO) Further information about the Funds’ policies and objectives, as well as investment philosophy and strategy, can be found in the Funds’ SIPO. We can make changes to the SIPO at any time in accordance with the Trust Deed and the Financial Markets Conduct Act 2013. We will consult with the Supervisor prior to making any changes and will not implement any material change without giving you at least one month’s prior notice. The most current version of the Funds’ SIPO is available at www.disclose-register.companiesoffice.govt.nz. Further information about the assets in the Funds can be found in the Fund Updates at pginvestments.nz. PRODUCT DISCLOSURE STATEMENT / 12 PERPETUAL GUARDIAN INVESTMENTS 04. What are the risks of Investing understanding the risk indicator Managed Funds in New Zealand must have a standard risk indicator. The risk indicator is designed to help investors understand the uncertainties both for loss and growth that may affect their investment. You can compare Funds using the risk indicator. higher potentially risk 07 higher returns Example Risk 06 indicator 05 current 04 04 risk profile 03 02 lower 01 potentially risk lower returns The completed risk indicators for the Funds covered by this PDS can be found in Section 3 “Description of your investment options”. 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 (volatility). 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/tools/investor-kickstarter. Note that even the lowest category does not mean a risk-free investment, and there may be 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 5 years to 31 March 2025. While risk indicators are usually relatively stable, they do shift from time to time. You can see the most recent risk indicators in the latest Fund Update for each Fund. PRODUCT DISCLOSURE STATEMENT / 13 PERPETUAL GUARDIAN INVESTMENTS 04. What are the risks of Investing continued GENERAL INVESTMENT RISKS Some of the things that may cause the Funds’ value to move up and down, which affect the risk indicator, are: Market risk The returns you receive from the Funds will be affected by the performance of the Funds’ investments, which may be affected by the performance of the investment markets generally. This risk includes movements in the general price level and demand and supply in the market in which the relevant investments are made, the sectors in which the investments are made, and economic and regulatory conditions, including market sentiment, inflation, interest rates, employment, political events, environmental and technological issues, and consumer demand both in New Zealand and globally. Currency risk A portion of the Funds’ investments may be invested in assets denominated in currencies other than New Zealand Dollars – e.g. Australian Dollars. Returns may be affected by movements between the New Zealand dollar and other currencies. Credit risk The risk of a counterparty to the Funds being unable to meet its payment obligations. Liquidity risk The ability to sell assets to obtain cash in a timely manner can be impaired because of a lack of buyers, suspension of trading, or market events. Smaller securities can be affected by a lack of liquidity. Unlisted Equities Some of the Funds may invest in unlisted equity securities, which are not traded on public markets. These investments can be difficult to value, may be less transparent, and may involve higher uncertainty. In addition, they are generally less liquid and may take longer to sell, especially in adverse market conditions. The performance of unlisted equities can also be more volatile due to limited information, smaller scale, or concentration in particular industries or geographies. PRODUCT DISCLOSURE STATEMENT / 14 PERPETUAL GUARDIAN INVESTMENTS 05. What are the Fees You will be charged fees for investing in the PG Funds. Fees are deducted from your investment and will reduce your returns. If PG Funds invests into other Funds, those Funds may also charge fees. The fees you pay will be charged in two ways: • Regular charges (for example, annual Fund charges). Small differences in these fees can have a large impact on your investment over the long term • One off fees (currently none). ESTIMATED ESTIMATED ESTIMATED MANAGEMENT AND FUND NAME PERFORMANCE TOTAL ANNUAL ADMINISTRATION FEES FUND CHARGES FEE PG Strategic Growth Fund 1.20% 0.00% 1.20% PG High Conviction Fund 1.20% 0.00% 1.20% PG Income Opportunities Fund 0.95% n/a 0.95% PG Global Alternatives Fund 1.40% 0.27% 1.67% PG New Zealand Bond Fund 0.65% n/a 0.65% The estimated performance fees shown above are based on the performance of the market index over the last 5 years. MANAGEMENT AND ADMINISTRATION CHARGES Management and administrative charges are set out as a percentage of the Fund’s net asset value. Actual charges over the past disclosure year are available in the latest Fund Updates. The management and administration charges covers our management fee, underlying management fees (excluding ETF management fees) and normal operating expenses of the Fund, including but not limited to Supervisor, custodial, Fund accounting, unit pricing, registry, audit and legal fees. It excludes trading costs and tax PERFORMANCE FEES Whilst the retail Funds do not charge performance fees themselves, some of the underlying wholesale Funds charge performance fees. The performance fees are charged daily to the investor as a percentage of any returns above a set minimum return (the hurdle rate) from the unit price when the last performance fee was paid (the high water mark). This is calculated after deducting the base Fund fee but before tax and the performance fee itself. The hurdle rate from the point of the high water mark is reviewed every year on 31 March. The Fund must exceed this hurdle rate from the high water mark before any performance fee can be paid to the manager. PRODUCT DISCLOSURE STATEMENT / 15 PERPETUAL GUARDIAN INVESTMENTS 05. What are the Fees continued The specific performance fees, hurdle rates, and high-water marks for each Fund are listed in the table below. PERFORMANCE PERFORMANCE HIGH FREQUENCY FEE (% OF FEE CAP (% HURDLE RATE FUND NAME WATER OF EXCESS OF NET ASSET OF RETURN MARK PAYMENT RETURN) VALUE) A perpetual high MSCI World water mark applies PG Strategic to the payment of the 10% 2% Index (Price Growth Fund performance-based fee. Return, in NZD) The high water mark is the unit price of the Fund at the last time the last performance fee was paid to the manager. Performance gains (if the high water mark is not achieved) Annually on A composite of or performance losses 31 March 50% S&P/NZX (relative to benchmark) are PG High All Index (Price carried forward into the Conviction 10% 2% Return, in NZD) next performance period. Fund and 50% S&P/ Performance fees may ASX 200 (Price accrue when below Return, in NZD) the high water mark, however are only payable once the high water mark is exceeded on a performance payment review date. A perpetual high water mark applies to the payment of the PG Global performance-based fee. RBA Cash Alternatives 10% n/a The high water mark Monthly Rate Target Fund* is the unit price of the Fund at the time the last performance fee was crystallised and paid. PG Income Opportunities n/a n/a n/a n/a n/a Fund PG New Zealand n/a n/a n/a n/a n/a Bond Fund *This performance fee is charged by an externally managed Fund that the PG Global Alternative Fund invests into. PRODUCT DISCLOSURE STATEMENT / 16 PERPETUAL GUARDIAN INVESTMENTS 05. What are the Fees continued BUY/SELL SPREADS The buy/sell spreads are costs that you will incur when you transact. The buy spread is added to the daily unit price on applications to the Fund and the sell spread is deducted from the unit price when you redeem from the Fund. The buy/sell spreads are not paid to PG Funds or any underlying manager. The buy/sell spreads reflect the estimated costs of buying or selling the underlying investments and may change over time with underlying market conditions. The purpose of the buy/sell spread is to ensure transaction costs are fairly attributed to investors entering or exiting each Fund. Current buy/sell spreads are advertised on our website at pginvestments.nz. The Funds all have indicative buy/sell spreads of 0.00%. EXAMPLE OF HOW FEES APPLY TO AN INVESTOR Andrew invests $10,000 in the PG High Conviction Fund. Currently there are no entry or exit fees and there is no buy or sell spread applied to transactions in the Fund. Andrew’s full $10,000 is invested at the prevailing unit price. He is charged management and administration fees, which work out to be $120 over the first year (1.20% of his $10,000 investment). These fees might be more or less if his account balance has increased or decreased over the year. Andrew may also be charged a performance fee if his fund earned more than its target. Estimated total fees for the first year (based on current fee structure) Fund charges: $120 Other charges: None What if a buy/sell spread is introduced? If a buy spread of 0.15% were to apply in the future, it is incorporated in the unit price Andrew pays for his investment. This equates to approximately $15 and is retained in the fund, not paid to us. This brings Andrew’s starting value of his investment to approximately $9,985. The management and administration fees would then be calculated based on the reduced investment amount. See the latest fund update for an example of the actual returns and fees investors were charged over the past year. This example applies only to the PG High Conviction Fund. If you are considering investing in other Funds, this example may not be representative of the actual fees you may be charged. THE FEES CAN BE CHANGED The fees detailed above may change from time to time in accordance with the trust deed, which can be found on the scheme register at www.disclose-register.companiesoffice.govt.nz PG Funds must publish a Fund update for each Fund showing the fees charged during the most recent year. Fund updates, including past updates, are available at pginvestments.nz. PRODUCT DISCLOSURE STATEMENT / 17 PERPETUAL GUARDIAN INVESTMENTS 06. What taxes will You Pay? Each Fund is a Portfolio Investment Entity (PIE). The amount of tax you pay is based on your Prescribed Investor Rate (PIR). To determine your PIR, go to www.ird.govt.nz/roles/portfolio-investment-entities/using-prescribed- investor-rates. If you are unsure of your PIR, we recommend you seek professional advice or contact the Inland Revenue Department. It is your responsibility to tell PG Funds your PIR when you invest or if your PIR changes. If you do not tell PG Funds, a default rate may be applied. If the rate applied to your PIE income is lower than your correct PIR you will be required to pay any tax shortfall as part of the income tax year-end process. If the rate applied to your PIE income is higher than your PIR any tax over-withheld will be used to reduce any income tax liability you may have for the tax year and any remaining amount will be refunded to you. 07. Who is Involved? ABOUT PG FUNDS PG Funds Limited is the Manager of the Funds. PG Funds Limited PG Funds can be contacted at: Perpetual Guardian Tower Telephone: +64 9 300 60 60 Level 23, 191 Queen Street, Email: info@castlepointfunds.com Auckland 1010, New Zealand WHO ELSE IS INVOLVED? ROLE NAME DESCRIPTION The New Zealand Independent supervisor of the Funds under the Financial Supervisor Guardian Trust Markets Conduct Act 2013, responsible for supervising PG Company Limited Funds Limited as manager of the Funds. Independent entity appointed by the Supervisor to hold Fund Custodian Adminis NZ Limited assets on behalf of investors. Appointed by PG Funds Limited to perform various administrative Administrator Adminis NZ Limited duties delegated to it, including unit pricing, registry and Fund accounting. Manager of the PG Funds managed investment scheme under Manager PG Funds Limited the Financial Markets Conduct Act 2013. Underlying Perpetual Guardian The entity that manages the wholesale Funds underlying the Investments Limited Investment Manager retail Funds in this SIPO. (PG Investments) PRODUCT DISCLOSURE STATEMENT / 18 PERPETUAL GUARDIAN INVESTMENTS 08. How to Complain In the first instance complaints about your investment can be made to PG Funds (contact details in Section 7 – Who is involved?). If we are unable to resolve your complaint you may choose to contact the Supervisor: The New Zealand Guardian Trust Company Limited Address: Level 6 Telephone: 0800 300 299 191 Queen Street E-mail: ct-auckland@nzgt.co.nz Auckland 1010 We and the Supervisor are members of the independent dispute resolution scheme Financial Services Complaints Limited (FSCL). If you have made a complaint to the Supervisor, and it has not been resolved (within two months, or if you are dissatisfied with the proposed resolution), you can refer it to FSCL at: Financial Services Complaints Limited (FSCL) Address: Level 4 101 Lambton Quay Telephone: 0800 347 257 PO Box 5967 E-mail: complaints@fscl.org.nz Wellington 6140 FSCL will not charge you to investigate or resolve a complaint. Further information about referring a complaint to FSCL can be found at www.fscl.org.nz. 09. Where you can find More Information Further information relating to PG Funds, including financial statements, is available on the Disclose Register at www.disclose-register.companiesoffice.govt.nz. Copies of information on the Disclose Register are also available on request from the Registrar of Financial Service Providers. Fund Updates relating to each of the Funds and other information is also available at pginvestments.nz. You will not be charged any fee to access this information. PRODUCT DISCLOSURE STATEMENT / 19 PERPETUAL GUARDIAN INVESTMENTS 10. How to Apply The easiest way to apply is online at pginvestments.nz. Please follow the instructions and make sure you have all the required information on hand, and feel free to contact us if you have any questions. Telephone: 0800 673 659 Email: contact@pginvestments.nz PG Funds Limited Perpetual Guardian Tower Level 23, 191 Queen Street, Auckland 1010, New Zealand apply here pginvestments.nz PRODUCT DISCLOSURE STATEMENT / 20 Intelligent investing for today and the future. PGINVESTMENTS.NZ --- ## SIPO **Source PDF:** https://pginvestments.nz/2026-03-pg-funds-sipo/ **Published:** 2026-03-01 **Pages:** 17 **Extracted via:** pdftotext on 2026-05-20 Statement of Investment Policy and Objectives for the PG Funds Issued by PG Funds Limited Effective Date 27 March 2026 contents 01 INTRODUCTION 02 02 GOVERNANCE AND MONITORING 03 03 INVESTMENT PHILOSOPHY 03 04 KEY INVESTMENT PROCESSES 04 05 DESCRIPTION OF ASSET CLASSES 08 06 FUND SCHEDULES 09 PG Strategic Growth Fund 10 PG High Conviction Fund 11 PG Income Opportunities Fund 12 PG Global Alternatives Fund 13 PG New Zealand Bond Fund 14 PERPETUAL GUARDIAN INVESTMENTS 01. Introduction What is a Statement of Investment Policy and Objectives (SIPO) A statement of investment policy and objectives (SIPO) is a document that sets out the investment governance and management framework, philosophy, strategies and objectives of a managed investment scheme and its investment Funds or portfolios. The most current version of this SIPO, along with other documentation relevant, is available on the Disclose Register at: www.disclose-register.companiesoffice.govt.nz. Who is involved ROLE NAME DESCRIPTION The New Zealand Independent supervisor of the Scheme (defined below) under the Supervisor Guardian Trust Financial Markets Conduct Act 2013, responsible for Company Limited supervising PG Funds Limited as manager of the Scheme. Independent entity appointed by the Supervisor to hold assets on Custodian Adminis NZ Limited behalf of investors. Appointed by PG Funds to perform various administrative duties Administrator Adminis NZ Limited delegated to it, including unit pricing, registry and Fund accounting. Manager of the Scheme under the Financial Markets Conduct Manager PG Funds Limited Act 2013. Perpetual Guardian Underlying The entity that manages the wholesale Funds underlying the retail Investments Limited Investment Manager Funds in this SIPO. (PG Investments) Description of the Scheme and Funds The PG Funds scheme (Scheme) is a managed investment scheme under the Financial Markets Conduct Act 2013, managed by PG Funds Limited (we, us, our). PG Funds Limited was founded in 2013, and in 2024, it was acquired by the Perpetual Guardian Group (PG Group). PG Investments is the investment management company of the PG Group. PG Investments provides a full suite of investment products and services to a wide range of clients of both the PG Group and other organisations. Each Fund which falls under the Scheme is a separate trust. The Funds which fall under the Scheme, covered in this document are the: • PG Strategic Growth Fund • PG High Conviction Fund • PG Income Opportunities Fund • PG Global Alternatives Fund • PG New Zealand Bond Fund (each a Fund, and together the Funds). STATEMENT OF INVESTMENT POLICY AND OBJECTIVES / 02 PERPETUAL GUARDIAN INVESTMENTS 02. Governance and monitoring Governance Structure Board of Directors: The Board of Directors provides overall oversight, meeting quarterly as guided by the Board Charter. Its responsibilities include monitoring compliance through the Compliance Assurance Programme, overseeing risk management practices, reviewing investment performance, and addressing other key areas. In addition, the Board evaluates overall performance each quarter, maintaining a focus on long-term investment decisions. Board Audit, Risk, and Compliance Committee (BARCC): This is a sub-committee of the PG Group Board. It meets three times a year and is responsible for overseeing risk management, assurance, internal controls, audit functions, and compliance with applicable laws, regulations, and internal policies across the PG Group. Investment Committee (IC): A management-level committee that meets quarterly to oversee the management of investment strategies, monitor portfolio performance, and ensure adherence to investment guidelines. Investment Performance Oversight The Investment Committee conducts regular reviews of portfolio performance to ensure outcomes align with the Funds’ objectives and benchmarks. These reviews prioritise long-term performance, assessing results against the overarching goals of the investment strategies. Investment Strategy Review The Investment Committee undertakes an annual review of the Funds’ investment strategies to ensure they remain appropriate and aligned with the Funds’ objectives. This process considers market conditions, economic developments, and any other relevant factors. Changes to the strategies are implemented only when necessary to address significant shifts in circumstances or opportunities. SIPO Review and Monitoring The SIPO is reviewed at least annually, with additional updates made as needed. Any revisions are formally documented, approved by the Board, and submitted to the Disclose Register. Senior management oversees the review process, with input from the compliance and investment teams to ensure the SIPO remains aligned with regulatory requirements, the Scheme’s Trust Deed, and the Funds’ overall objectives. Ongoing compliance monitoring ensures adherence to the SIPO, with any breaches promptly reported to the Supervisor in accordance with legal and contractual obligations. Updates to the SIPO are dated to indicate their effective period, and the most current version is accessible via the Disclose Register (www.disclose-register. companiesoffice.govt.nz) and our website. 03. Investment philosophy We believe sound investment returns to investors can be made through effective assessment of both quantitative and qualitative measures to identify companies and investments. We have our own signposts through our investment approach to identify high-quality companies for investment and likewise, warning signs that help us ward off undesirable investments. STATEMENT OF INVESTMENT POLICY AND OBJECTIVES / 03 PERPETUAL GUARDIAN INVESTMENTS 04. Key investment processes Valuation and pricing The valuation of underlying securities and the pricing of each Fund is outsourced to the Administrator. These functions are carried out by the Administrator daily and we have adopted the Administrator’s unit pricing policy and framework, unit pricing taxation policy and asset and liability valuation policy. The objective of this policy is to ensure that the investment portfolios are fairly valued and priced, there is appropriate oversight of the outsourced pricing and valuation function, and we comply with Financial Markets Authority requirements and the Scheme’s Trust Deed. Conflicts of interest Conflicts of interest occur when our investment managers’ interests may conflict with those of our clients. We are committed to acting honestly, fairly, and professionally to ensure our clients’ best interests are upheld at all times. To manage potential or actual conflicts of interest, we follow a Conflicts of Interest Policy that outlines processes for identifying, declaring, and monitoring conflicts. We take all reasonable steps to prevent conflicts wherever possible and ensure fairness to investors if they arise. Our Conflicts of Interest Policy is available on the Disclose Register at: www. disclose-register.companiesoffice.govt.nz. COMMON AREAS OF POTENTIAL CONFLICT AND HOW WE MANAGE THOSE: • Broker Selection - We are committed to achieving “best execution” for all securities transactions carried out on behalf of our clients. • Trade Allocation - All clients are treated equitably, and no client receives preferential treatment. Securities are allocated fairly to ensure consistent and fair treatment across all accounts. • Proxy Voting – We vote proxies in the best interests of our clients If a conflict of interest arises, we may abstain from voting, ask clients to vote on their own behalf, or engage an independent third party to vote on behalf of our clients. Our approach ensures that conflicts are managed transparently and fairly, maintaining the integrity of our investment process and prioritising the interests of our clients. Investment EQUITY INVESTMENT PROCESS Our approach to investing in company shares is guided by four core criteria: 1. Business Quality – Emphasis on strong management and sustainable practices. 2. Financial Structure – Evaluation of factors such as debt levels and margins. 3. Industry Trends – Analysis of key drivers and challenges within the company’s broader industry. 4. Growth Opportunities – Identification of opportunities specific to the company. To construct portfolios aligned with our philosophy, our investments employ a combination of top-down and bottom-up analyses, supported by ongoing research and monitoring. STATEMENT OF INVESTMENT POLICY AND OBJECTIVES / 04 PERPETUAL GUARDIAN PERPETUAL GUARDIANINVESTMENTS INVESTMENTS INVESTMENT PROCESS STEPS 1. Top-Down Analysis - We begin by screening a broad universe of companies using filters based on our core criteria, such as earnings, margins, and leverage. We also research key industry themes to evaluate growth prospects, structural dynamics, challenges, and risks. 2. Bottom-Up Analysis - Next, we take a closer look at the candidates identified through our top-down screening. We assess individual company factors, including the quality of management and the company’s position within its industry. 3. SWOT Analysis and Ranking - We then apply a Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis to each company. Using this, we rank the candidates and identify the most suitable investments for inclusion in our portfolios. 4. Ongoing Monitoring and Risk Assessment - We continually review and assess the individual investments in our portfolios, as well as the industries they belong to. This ensures our investment process remains dynamic and responsive to changes in market conditions, while staying true to our investment philosophy. The complete investment process is shown below: Ongoing Universe relative value Screening assessment 4. Review Industry 1. Analysis Themes and Risk Top Down Assessment Monitoring 3. Security 2. Analysis Assessment Bottom Up SWOT Bottom Up Management analysis Industry Relative position ranking FIXED INTEREST INVESTMENT PROCESS We undertake a top down and bottom-up approach to fixed interest investing. From the top down we assess the macroeconomic environment, in conjunction with geopolitical considerations, and monetary and fiscal policies driving the relative attractiveness of fixed income investments. From the bottom up we undertake an appraisal of issuers. The process steps are described in detail below: Our fixed income strategy combines top-down macroeconomic analysis with bottom-up issuer assessment to construct robust portfolios. STATEMENT OFOF STATEMENT INVESTMENT POLICY INVESTMENT POLICYAND ANDOBJECTIVES OBJECTIVES // 05 05 PERPETUAL GUARDIAN INVESTMENTS PERPETUAL GUARDIAN PERPETUAL GUARDIANINVESTMENTS INVESTMENTS INVESTMENT INVESTMENTPROCESS PROCESSSTEPS STEPS 1. Macro Analysis (Top-Down) - We evaluate global and domestic macroeconomic conditions, considering factors such 1. Macro Analysis (Top-Down) - We evaluate global and domestic macroeconomic conditions, considering factors such as as geopolitical influences, trade dynamics, and central bank policies. We analyse yield curves to uncover key investment geopolitical influences, trade dynamics, and Central Bank policies. We analyse yield curves to uncover key investment themes and identify potential opportunities in the fixed income market. themes and identify potential opportunities in the fixed income market. Yield 2.2. Curve Yield Assessment Curve Assessment (Bottom-Up) (Bottom-Up)-We-We review current review market current pricing of market assets pricing of to assetsassess their relative to assess value. From their relative value.there, From we select there, webonds selecthat bestthat bonds alignbest withalign our with strategy, ourfocusing strategy,onfocusing such as factors on sector, factors such credit quality,credit as sector, maturity, and duration. quality, maturity, and 3. Sduration. ecurity Assessment (Bottom-Up) - We use our STATIC framework to score issuers, evaluating their stability, Security Assessment 3.transparency, business (Bottom-Up) position, and -independent We use our STATIC ratings. framework to score This structured issuers,helps approach evaluating us make their stability, informed transparency, business position, and independent ratings. This structured approach helps us make informed decisions decisions about the bonds we include in our portfolios. STATIC stands for Stable, Too important to fail, Alignment with about the bonds we include in our portfolios. STATIC stands for Stable, Too important to fail, Alignment with guidelines, guidelines, Transparency, Institutional support, and Creditworthiness—providing a consistent, repeatable framework to Transparency, Institutional support, and Creditworthiness—providing a consistent, repeatable framework to assess credit assess credit strength. strength. 4.4.Ongoing OngoingMonitoring Monitoring- -We Wecontinually continuallymonitor monitor macroeconomic macroeconomic factors, factors,portfolio portfoliopositioning, positioning,andandissuer ratings. issuer ratings. This This allows allows us to us to maintain maintain alignment alignment withwith ourour investment investment objectives objectives andand proactively proactively manage manage riskrisk in ain a dynamic dynamic market environment. market environment. This ongoing process is shown below: Ongoing Macroeconomic relative value Analysis assessment Market Risk 4. Review Cycle Phase and Risk 1. Analysis Assessment Top Down Monitoring 3. Security 2. Yield Curve Relative Assessment Assessment Value Bottom Up Bottom Up Shape of Assessment Yield Curve (Buy the “Best Bond”) ALL INVESTMENT FUNDS For both equity and New Zealand fixed interest our Investment Team meetings bring together all our recommendations where investment ideas are formally presented and peer reviewed for potential implementation. These meetings are designed to promote collaboration on investment decisions and leverage the team's experience and knowledge, both in New Zealand and overseas, held amongst the team. The individual manager is responsible for final selection of the securities to include within the specific portfolio they are responsible for. STATEMENT OFOF STATEMENT INVESTMENT POLICY INVESTMENT POLICYAND ANDOBJECTIVES OBJECTIVES // 06 06 PERPETUAL GUARDIAN INVESTMENTS External managers When we engage third-party managers, we undertake a rigorous selection and monitoring process to ensure they align with our investment objectives and philosophy. Our due diligence process focuses on identifying managers who share our values and commitment to disciplined, high-quality investment practices. Key Considerations in Manager Selection: • A well-defined and disciplined investment process. • An investment style that aligns with our philosophy and the objectives of the Funds. • The experience and capability of the investment team. • A proven performance track record. • Accessibility and transparency of the investment management team. • Robust governance and compliance frameworks. • The liquidity of the investment vehicle and its ability to meet the Funds’ liquidity requirements. Once a manager is appointed, we regularly assess their performance, holdings, and adherence to their stated investment process and disclosures. This review ensures the manager’s approach continues to align with our expectations and Fund objectives. Any concerns identified during our assessments are promptly addressed with the manager for resolution. We periodically report our findings to the Investment Committee and retain the discretion to add or remove managers as required to best serve the interests of our investors. Rebalancing Rebalancing is the process used to keep the portfolio aligned with its intended investment structure. Each asset in the portfolio has a target position, with bands set around that target (also called “permitted ranges”) to accommodate national market movements. Over time, changes in asset values can cause portfolio weights to move away from their targets. If an asset moves outside its permitted band, the portfolio may no longer reflect the desired risk and return profile. To address this, a Rebalancing Policy is followed. The portfolio is monitored daily, and when an asset breaches its band, trades are made to return it closer to target. This typically involves reducing positions that have increased in weight and adding to those that have decreased. Key features of the rebalancing process: - Target positions with bands – Each asset has a defined target and associated tolerance band. Rebalancing is triggered when weights move outside these bands. - Daily monitoring – The portfolio is reviewed daily, or in response to significant market movements. - Efficient execution – Rebalancing is carried out with consideration for transaction costs, liquidity, and tax impacts. - Consistent application – The approach is applied uniformly across all relevant portfolios to ensure fairness and consistency. This disciplined process supports the Funds’ long-term investment strategy by maintaining alignment with their intended risk profile and investment objectives. STATEMENT OF INVESTMENT POLICY AND OBJECTIVES / 07 PERPETUAL GUARDIAN INVESTMENTS Short selling, borrowing, derivatives and foreign currency exposures The table below outlines each Fund’s permitted use of short selling, borrowing, derivatives, and foreign currency exposure. The Funds are unhedged by default with respect to foreign currency exposure but may choose to hedge this exposure when considered beneficial. Derivatives may be used to adjust exposure to underlying assets, including for the purpose of leverage. Foreign currency derivative positions are not required to be cash-backed; however, such positions are actively monitored and regularly closed out to manage risk. FOREIGN FUND SHORT SELL BORROW CASH DERIVATIVES CURRENCY EXPOSURE PG Strategic Growth Fund No No Yes 0-100% PG High Conviction Fund No No Yes 0-100% PG Income Opportunities Fund No No Yes 0-100% PG Global Alternatives Fund No No Yes 0-100% PG New Zealand Bond Fund No No Yes n/a STATEMENT OF INVESTMENT POLICY AND OBJECTIVES / 08 PERPETUAL GUARDIAN INVESTMENTS 05. Description of Asset Classes Each Fund has different limits and target exposures across asset classes. The definitions of these asset classes are provided below. Where a Fund invests in other internally managed Funds, we apply a look-through approach to identify the underlying exposures. For externally managed Funds, classification is based on the predominant exposure of the underlying investments in line with the definitions below. ASSET CLASS DESCRIPTION OF ASSET CLASS Cash and Cash Equivalents Cash at bank. New Zealand dollar denominated fixed interest securities, loans, interest rate New Zealand Fixed Interest swaps, term deposits and other yield-bearing investments. Fixed interest securities, loans, interest rate swaps, term deposits and other yield- International Fixed Interest bearing investments based outside New Zealand. Australasian-based equity including ordinary, preference and partly paid shares, Australasian Equities convertible securities, warrants and exchange-traded Funds (ETFs). Equity based outside New Zealand and Australia, including ordinary, preference International Equities and partly paid shares, convertible securities, warrants and exchange traded Funds (ETFs). Equities which are not listed on a public stock-exchange. These could fall under Unlisted Equities Australian, New Zealand or International Equities. Futures, options, commodities, long/short strategies, event-driven strategies, Other market neutral style premia strategies and other investments that do not meet the criteria of the above categories. STATEMENT OF INVESTMENT POLICY AND OBJECTIVES / 09 PERPETUAL GUARDIAN INVESTMENTS 06. Fund Schedules PG STRATEGIC GROWTH FUND PG HIGH CONVICTION FUND PG INCOME OPPORTUNITIES FUND PG GLOBAL ALTERNATIVES FUND PG NEW ZEALAND BOND FUND STATEMENT OF INVESTMENT POLICY AND OBJECTIVES / 10 PERPETUAL GUARDIAN INVESTMENTS PG Strategic Growth Fund OBJECTIVE/DESCRIPTION The Fund aims to achieve long-term capital growth by investing predominantly in international equites, including Exchange Traded Funds (ETFs) listed throughout the world. STRATEGY The Fund employs an active management strategy, focusing on a select group of between typically 10 and 50 predominantly international companies. This focused approach allows careful selection and management of investments and not passively investing to replicate any given index. While the Fund primarily invests in international markets, it retains the ability to invest in shares in Australasia. Typically, the Fund will be fully invested however cash or cash equivalents may be held to reduce risk and increase flexibility. The primary objective of the Fund is to achieve long-term capital growth. MINIMUM RECOMMENDED INVESTMENT TIME FRAME 5 years PERFORMANCE BENCHMARK MSCI World Index (Price Return, in NZD) While the Fund uses this as a benchmark, it is managed without strictly following or being tied to it. MARKET INDEX This Fund is not managed against a specific market index. Nevertheless, we reference the following as a market index for the Fund. MSCI World Index (Price Return, in NZD) TARGET AND PERMITTED RANGES PERMITTED ASSET CLASS TARGET RANGES Cash and Cash Equivalents 2% 0-30% International Equities 98% 70-100% Australasian Equities 0% 0-30% International Fixed Interest 0% 0-20% Unlisted Equities 0% 0-10% STATEMENT OF INVESTMENT POLICY AND OBJECTIVES / 11 PERPETUAL GUARDIAN INVESTMENTS PG High Conviction Fund OBJECTIVE/DESCRIPTION The Fund’s primary objective is to achieve long-term capital appreciation through strategic investment in a select group of New Zealand and Australian equities. The strategy allows the Fund to navigate market fluctuations while aiming for sustained growth over extended periods. STRATEGY The Fund employs an active management strategy, focusing on a select group of between typically 10 and 30 companies listed in Australia and New Zealand. This focused approach allows careful selection and management of investments and not passively investing to replicate an index. While the Fund primarily invests in Australasian markets, it retains the ability to invest in shares listed outside this region. Typically, the Fund will be fully invested however cash or cash equivalents may be held to reduce risk and increase flexibility. The primary objective of the Fund is to achieve long-term capital growth. MINIMUM RECOMMENDED INVESTMENT TIME FRAME 5 years PERFORMANCE BENCHMARK 50% S&P / NZ All Shares (Price Return, in NZD) 50% S&P / ASX 200 (Price Return, in NZD) While the Fund uses this as a benchmark, it is managed without strictly following or being tied to it. MARKET INDEX 50% S&P / NZ All Shares (Price Return, in NZD) 50% S&P / ASX 200 (Price Return, in NZD) While the Fund uses this as a market index, it is managed without strictly following or being tied to it. TARGET AND PERMITTED RANGES PERMITTED ASSET CLASS TARGET RANGES Cash and Cash Equivalents 2% 0-30% Australasian Equities 98% 70-100% Unlisted Equities 0% 0-10% International Equities 0% 0-30% International Fixed Interest 0% 0-30% STATEMENT OF INVESTMENT POLICY AND OBJECTIVES / 12 PERPETUAL GUARDIAN INVESTMENTS PG Income Opportunities Fund OBJECTIVE/DESCRIPTION The Fund aims to provide a higher level of income from a diversified investment portfolio of equity and fixed income securities alongside moderate capital growth over the long-term. STRATEGY The Fund combines quantitative analysis overlayed with qualitative, fundamental research across Australasian investments. The Fund primarily invests in select equities that typically offer compelling dividend yields, fixed interest securities and cash. Through this approach the Fund provides diversification of investment types and income streams and providing investors with the potential for regular distributions. MINIMUM RECOMMENDED INVESTMENT TIME FRAME 3 years PERFORMANCE BENCHMARK NZ Official Cash Rate + 2.5% MARKET INDEX While this Fund is not managed against a specific market index, the following is provided as its returns are likely to be useful to investors when assessing the performance of the Fund as a whole. 50% Bloomberg NZ Bond Composite 0+ Yr (Total Return, in NZD) 25% S&P / ASX 200 (Price Return, in NZD) 25% S&P / NZ All Shares (Price Return, in NZD) TARGET AND PERMITTED RANGES PERMITTED ASSET CLASS TARGET RANGES Cash and Cash Equivalents 2% 0-30% Australasian Equities 50% 20-80% New Zealand Fixed Interest 48% 0-60% International Equities 0% 0-40% International Fixed Interest 0% 0-40% Unlisted Equities 0% 0-10% STATEMENT OF INVESTMENT POLICY AND OBJECTIVES / 13 PERPETUAL GUARDIAN INVESTMENTS PG Global Alternatives Fund OBJECTIVE/DESCRIPTION The Fund aims to deliver attractive long-term returns by investing in a diversified portfolio of global alternative strategies through managed Funds. These may include but are not limited to equity long/short strategies, fixed interest strategies focused on factors such as capital structure or rate spreads, global macro strategies such as thematics and relative value, and style premia strategies such as value, momentum and interest carry. The Fund is designed to complement traditional equity and bond portfolios by providing exposure to differentiated sources of return with a focus on capital growth, diversification, and risk-adjusted outcomes. STRATEGY The Fund employs an active, multi-asset strategy focused on identifying and allocating capital to a carefully selected group of global alternative investments. The Fund invests through external Fund managers who demonstrate strong alignment with the Fund’s objectives, possess specialist expertise, and maintain a disciplined investment process. External managers are selected based on rigorous due diligence, including assessment of their track record, investment philosophy, risk management practices, and structural alignment with investors. MINIMUM RECOMMENDED INVESTMENT TIME FRAME 5 years PERFORMANCE BENCHMARK NZ Official Cash Rate + 3% MARKET INDEX While this Fund is not managed against a specific market index, the following information is provided because the returns may still be helpful for investors when assessing the Fund’s overall performance. The weightings shown are based on an estimated look-through of the Fund’s underlying managed Fund exposures. However, when categorising underlying Funds into asset classes for the Target and Permitted Ranges, externally managed Funds are classified based on the predominant exposure of their underlying investments. 45% MSCI World (Price Return, in NZD) 20% Bloomberg Global Agg Total Return Index (Price Return, in NZD) 35% S&P / NZX Bank Bills 90-Day Index (Total Return, in NZD) TARGET AND PERMITTED RANGES The Fund targets exposures to the following investments: PERMITTED ASSET CLASS TARGET RANGES Cash and Cash Equivalents 2% 0-20% Other 98% 80-100% International Equities 0% 0-50% STATEMENT OF INVESTMENT POLICY AND OBJECTIVES / 14 PERPETUAL GUARDIAN INVESTMENTS PG New Zealand Bond Fund OBJECTIVE/DESCRIPTION The Fund is designed to provide regular income from predominantly New Zealand investment grade corporate bonds. STRATEGY The Fund predominantly invests in select New Zealand corporate fixed interest securities. The Fund employs active duration management, adjusting the portfolio’s sensitivity to interest rate changes based on market conditions and economic outlooks. This approach allows for tactical positioning in response to anticipated interest rate movements, potentially enhancing returns and mitigating risks associated with bond price fluctuations. MINIMUM RECOMMENDED INVESTMENT TIME FRAME 3 years PERFORMANCE BENCHMARK Bloomberg NZ Bond Composite 0+ Yr (Total Return, in NZD) MARKET INDEX Bloomberg NZ Bond Composite 0+ Yr (Total Return, in NZD) TARGET AND PERMITTED RANGES PERMITTED ASSET CLASS TARGET RANGES Cash and Cash Equivalents 0% 0-20% New Zealand Fixed Interest 100% 80-100% STATEMENT OF INVESTMENT POLICY AND OBJECTIVES / 15 PGINVESTMENTS.NZ