You may have seen recent media coverage regarding challenges facing parts of the New Zealand wine industry and Booster's Private Land & Property Portfolio (PLPP).
As your financial advisers, we continually monitor developments through independent investment research and our regular discussions with the investment and KiwiSaver providers we recommend. In light of the recent coverage, we thought it would be helpful to provide some additional context.
With respect to Booster's Private Land & Property Portfolio (PLPP):
1. Proposed lease changes
Booster has proposed exiting a number of Hawke's Bay lease arrangements, including several vineyards that form part of the PLPP. At this stage, this remains a proposal and no final decision has been confirmed.
2. The scale of the affected assets
The Hawke's Bay assets involved have an estimated value of approximately $8.2 million within a diversified property portfolio valued at more than $221 million. This represents around 3.7% of the PLPP.
3. The impact on KiwiSaver portfolios
For most KiwiSaver investors, the PLPP itself represents only one component of a much broader, diversified investment portfolio. Within a typical balanced KiwiSaver fund, exposure to the Hawke's Bay assets is estimated to be less than one tenth of one percent of the total portfolio.
The PLPP continues to be actively managed and remains diversified across a wide range of productive land and property investments, including vineyards, orchards, dairy, logistics and other property assets.
It is also important to remember that our investment recommendations are based on the overall quality, diversification and long-term suitability of an investment solution, rather than any single underlying investment or asset. While developments such as this are carefully monitored, they are considered within the context of the entire portfolio and your long-term investment objectives.
Based on the information currently available, we do not recommend any action at this time. We will continue to monitor developments closely with Booster and through our independent research providers, and will keep you informed should there be any material changes that affect our advice.
If you have any questions or would like to discuss your investments, please contact your adviser, email us at info@foxplan.nz, or call us on 0800 667 673.
0800 NO STRESS
info@foxplan.nz
www.foxplan.nz