Your investment options
At Craigs we provide you with the flexibility to build a portfolio of investments from our list of investment options.
We have over 240 investment options available for you to invest in. Our investment options include a range of equity, fixed interest, investment trusts, NZ managed funds, index funds and listed property trust investments, available on local and international listed and unlisted markets.
If you would like to review and make changes to your portfolio please contact your Craigs investment adviser or our Client Services team.
Read our research insights on three of our current investment options below.
iShares MSCI Japan ESG Enhanced UCITS ETF
EEJD.LSE
Our Classification: Core
Risk indicator: 5/7
Sustainability score: N/A
About EEJD
EEJD tracks the performance of the MSCI Japan ESG Enhanced Focus CTB Index, an index constructed with the aim of providing investors access to the Japanese market via companies that operate in a socially and environmentally responsible manner.
What makes EEJD different?
The fund’s underlying index provides exposure primarily to large and mid-capitalisation companies trading on the Tokyo Stock Exchange. The index is designed to maximise exposure to positive ESG factors while reducing carbon emissions. With a low expense ratio of 0.15%, EEJD is an effective way for ESG-focused investors to obtain an exposure to Japanese equities.
Opportunities and threats
Japan is the world’s fourth-largest economy and home to many of the world’s most innovative industrial, technology and pharmaceutical companies. The Japanese sharemarket was one of the best performers in 2023. Driving this was an improvement in Japan’s domestic economy (consumer spending and tourism activity are strong) following the removal of COVID-related restrictions. Another key driver of performance has been the Tokyo Stock Exchange’s initiative to put pressure on listed companies to meet certain profitability and governance standards, or else face delisting. Companies with inefficient capital structures and those that have consistently traded below their book value are the main targets of this initiative. This change in policy should be a tailwind for Japanese shares over the medium term. As a large exporting nation, Japan will remain sensitive to the global economic environment.
Our view and outlook
EEJD provides investors with a well-diversified portfolio of Japanese companies, while incorporating an environmental and social impact overlay. Though the underlying holdings do not differ drastically from the main Japanese index, the ESG integration means that the composition of EEJD can differ materially from the MSCI Japan Index for sector and individual company exposures (i.e. a higher weight towards Healthcare and Financials). As a result, the performance will differ from the broad Japanese market.
Turners Automotive Group Limited
TRA.NZX | Financials
Our Classification: Supplementary
Risk indicator: 7/7
Sustainability score: N/A
About Turners Automotive
TRA is an automotive focused financial services group. The company was formed following the merger of Turners Auctions and Dorchester in 2014. In 2016 TRA acquired the Buy Right Cars franchise, which extended the group’s physical footprint.
What makes Turners Automotive different?
TRA derives revenue from four segments; in automotive retail, TRA is the largest second-hand vehicle retailer in the country selling in excess of 30,000 units through its Turners business. This market remains highly fragmented with TRA having just over 10% share. Finance and insurance primarily involves motor vehicle loans through TRA’s referral network including its own dealerships, as well as personal loans and insurance. Credit management operates in New Zealand and Australia and primarily provides debt collection services.
Opportunities and threats
A key advantage for TRA is that it has its own network of car dealerships, from which it can sell finance products from the financial services part of the business. The company’s diversified supply sources are also a major advantage relative to competition, allowing TRA to manage inventory to underlying conditions. In terms of geographic location, TRA is also starting to streamline its operations to smaller sites.
TRA sources 90%+ of its vehicles domestically, so given the company buys and sells vehicles in the same market, there is limited impact from vehicle price fluctuations. In addition, increasing market share in Finance and Automotive should help to offset any demand-side weakness.
Our view and outlook
TRA’s investment case is underpinned by continued growth in finance & insurance, leveraging off ongoing growth in automotive retail and existing dealer relationships. TRA also has opportunities to enhance its online capability in automotive retailing and automatic finance approvals. Vehicle sales volumes are certainly sensitive to changes in consumer confidence and the broader economy, but used cars tend to be less sensitive relative to new car sales. Despite the significant impacts from COVID-19, TRA sees opportunity within the auto dealership market, highlighting that post the GFC, industry consolidation was strong. TRA has done an excellent job of navigating a volatile last couple of years, and while we rate management, and their strategic direction, highly, the company still has an element of exposure to the economic cycle and consumer strength.
Smart Australian Mid Cap ETF*
MZY.NZX
Our Classification: Core
Risk indicator: 6/7
Sustainability score: N/A
About Smart Australian Mid Cap ETF
MZY is a passively managed fund listed on the New Zealand market. It provides a simple way to invest in a portfolio of mid-sized Australian companies included in the S&P/ASX Mid Cap 50 Index.
What makes Smart Australian Mid Cap ETF different?
MZY tracks the performance of the S&P ASX Mid Cap 50 Index. This index comprises stocks in the S&P ASX 100 Index that are not in the S&P ASX 50. MZY provides a broad exposure to the Australian economy, with a number of key industry sectors represented. Smart offers exposure through a PIE-structured fund. A key benefit of the PIE structure is its capped income tax rate of 28%, making it a tax-efficient option for investors with higher income tax rates.
Opportunities and threats
As MZY is a passive fund (i.e. not actively managed by a fund manager), fees are lower than most actively managed funds, though higher than most offshore ETFs. MZY charges an annual management fee of 0.40% (after rebate). MZY is a listed portfolio investment entity (PIE). As a listed PIE, MZY pays tax on taxable income at the rate of 28% and is generally a tax-efficient vehicle for NZ investors. MZY provides a broader sector exposure.
The Australian share market is heavily concentrated in the largest companies. The 20 largest entities listed on the ASX account for over 50% of the market capitalisation of the S&P/ASX 300 Index. These companies are also heavily concentrated by industry exposure, particularly materials and financials. Investing outside the top 20 allows for greater diversification.
Our view and outlook
A mid-cap exposure has historically been more volatile than the overall market. However, it has also historically outperformed the broader market over most medium-term periods. The mid-cap space often includes more grow-oriented companies with a more balanced exposure to sectors, which can make for an attractive exposure.
About risk indicators and sustainability scores
Risk indicators are assessed by Craigs Private Wealth Research team and are rated from 1 (low) to 7 (high). The rating reflects how much the value of the company goes up and down (volatility). A higher risk generally means there is the potential for higher returns over time, but with the risk of higher losses, and there are likely to be more ups and downs along the way. To help you clarify your own attitude to risk, work out your risk profile at craigsip.com/risk-profiler or speak to your Investment Adviser.
Sustainability scores are assessed by Craigs Private Wealth Research sustainability team and are calculated as an average rating out of five for environmental, social and governance factors. An N/A sustainability score means a sustainability assessment has not been made. For further information on how we calculate these scores, please refer to this report or speak to your Investment Adviser.