What can the Hunter Private Credit Fund actually invest in?
The fund's Statement of Investment Policy and Objectives (SIPO) defines the asset classes it can hold and the allowable target / min / max weights for each.
Strategic asset allocation ranges
| Asset class | Target | Min | Max |
|---|---|---|---|
| New Zealand Fixed Interest (New Zealand Private Credit) | 60% | 30% | 100% |
| International Fixed Interest (Australian Private Credit) | 35% | 0% | 70% |
| International Private Credit | — | 0% | 25% |
| Australasian public bond markets | — | 0% | 25% |
| Cash or cash equivalents | 5% | 0% | 50% |
Mandate flexibility (sum of max − min across all ranges): 240%. Wide range — high manager discretion typical of active management.
Explicit exclusions (5)
- Equity investments (except compensation equity received, to be sold within six months where possible)
- Distressed debt (intentional investment)
- Companies involved in certain activities as described in Harbour's exclusion policy
- Debt funding to any related party of the Scheme (as defined in FMC Act)
- Leverage for the purpose of increasing returns
Responsible-investment approach
Harbour's Environmental, Social and Governance Policy applies to the Hunter Private Credit Fund. ESG considerations are taken into account in the investment policies and procedures of the Funds. The Hunter Global Fixed Interest Fund has specific prohibited investments listed in section 4, including tobacco companies, armament manufacturers, cluster munitions, pornography/gambling (>10% earnings), fossil fuel companies (>10% earnings or core business), and companies with 'very severe' ESG controversies scoring 0 on MSCI's ESG Controversy criteria.
Derivatives policy
The Hunter Private Credit Fund's use of derivatives is governed by the Harbour Derivative Risk Statement (DRS), permitting foreign exchange futures, interest rate swaps and options for hedging interest rate risk and currency exposure only. The Hunter Global Fixed Interest Fund is governed by the PIMCO Use of Derivatives Statement, permitting options, futures, swaps and credit derivatives for risk protection, return enhancement, cost-effective asset exposure, implementing investment objectives, and currency management.