Value Investing? Meet Clarity Funds Management.
Written: 23 August 2022
Author: Jono O'Grady
3 min read
Clarity Funds Management
Clarity Funds Management Limited is an investment manager in Takapuna, Auckland offering 9 funds on Flint. So, who is Clarity, and why would you consider investing in a Clarity fund? Let’s unpack Clarity in this article, and touch on their ethos and approach to investing.
Background
Clarity is part of the Investment Services Group (ISG) of companies which owns other investment related entities including JMI Wealth, Devon Funds, Select Wealth Services and TAHITO. The group shares services across businesses, but each business operates autonomously. Clarity benefits from collaboration across the group such as “middle office fund management services, adviser support services, compliance and regulatory oversight and general office support services.” While the team at Clarity might be small, they are well supported and connected.
Investment ethos
Clarity Funds may not be a name you’ve heard over a family BBQ – their funds are often distributed by financial advisers or invested in by wholesale customers – but they are worthy of consideration when you’re looking for managed funds to invest in online.
The company takes an active approach to fund management, and a ‘value’ style approach (explained below). The investment ethos at Clarity can be summarised by seven key principles. They state:
- We endeavour to take a long-term view.
- We are not speculators. We actively seek quality investments where we believe the underlying value is equal to or exceeds the current price.
- We err on the conservative side of investing.
- We take a disciplined approach to risk management.
- We strongly believe in the importance of diversification.
- We seek to invest your capital responsibly, conscious of environmental, social and governance issues in the companies we invest in.
If we pause and drill down a little further into what makes Clarity different, you could say it is a combination of their active approach to investment paired with a value driven approach, wrapped around with strong support from ISG.
Value investors
Their ‘value’ driven approach is worth highlighting, as many other managers take a growth approach. The Clarity team have this to say about value investing, which has been making a comeback in recent times:
“While ‘Growth’ investing has been the flavour of the month recently, driven by generationally low interest rates and all conquering megacap technology companies, over the long-term, ‘Value’ investing has been proven to be the more rewarding of the two approaches. Previous periods of Value underperformance have been followed by sharp reversals and we have no reason to believe this time will be different.”
This ‘value’ driven focus is evident in the investment choices the team make on behalf of customers and is well reflected in the holdings lists of funds, where familiar names often appear.
The focus of Clarity on value investing is an interesting one in the current economic climate, where some investors may be looking for value driven investment choices, and investment managers which lean towards making conservative decisions.
Investment options for Kiwi investors
We’re thrilled to be able to offer all 9 Clarity funds on Flint, including the TAHITO Indigenous investing fund that we cover here. Flint is the first investment platform in New Zealand to offer all 9 Clarity funds at an entry point of $50, providing a great degree of flexibility and accessibility for investing into Clarity funds. The company states that:
‘Our aim is to provide our clients with straightforward, flexible investment options, giving them uncomplicated funds that they can understand and trust. We are focused on delivering long-term growth for investors.’
The funds available on Flint are:
- Clarity Fixed Income Fund
- Clarity Dividend Yield Fund
- Clarity New Zealand Equity Fund
- Clarity Trans-Tasman Value Fund
- Clarity Global Shares Fund
- Clarity - Capital Group New Perspective Fund
- Clarity Diversified Income Fund
- Clarity Diversified Growth Fund
- TAHITO Te Tai o Rehua Fund
You can find performance information, fee information and the Product Disclosure Document for each fund on the digital tear sheets on Flint.
Happy fund researching!
Flint
IMPORTANT NOTICE AND DISCLAIMER:
All content shared is of a general nature, current to the time it was penned, and is not financial advice. Before making any investment decisions, please be sure you have completed full due diligence. This should include reading the product disclosure statement (PDS), considering fees and taxation, identifying your time horizons, and understanding the performance history and reputation of the investments you are considering.
Please note: When investing you are not guaranteed to make money (and on occasion you may lose some or all of the money you began with). Seek independent advice to establish if an investment is suitable for your financial situation and long-term wealth generation goals.
References:
https://clarityfunds.co.nz/about-us
https://devonfunds.co.nz/value-matters
https://www.goodreturns.co.nz/article/976519817/the-return-of-value-investing.html