Question 1

What can the Squirrel Monthly Income Fund invest in?

Accepted Answer

The Squirrel Monthly Income Fund's Statement of Investment Policy and Objectives (SIPO) sets out target weights and allowable ranges across 4 asset classes. Total mandate flexibility (sum of max − min across all ranges) is 210% — a wide range typical of actively-managed funds with high manager discretion.

Question 2

Does the Squirrel Monthly Income Fund exclude any companies or sectors?

Accepted Answer

The fund's SIPO does not list explicit exclusions. (Index-tracking funds typically rely on the underlying index methodology for any exclusions; actively-managed funds usually disclose specific exclusions if they apply.)

Question 3

What is the difference between target weight, min, and max in a SIPO?

Accepted Answer

Target weight (or "strategic asset allocation") is the long-run benchmark mix the fund aims to hold. Min and max are the boundaries the manager can move within — if the manager wants to be defensively positioned they can move toward the min/max edge in any asset class. A wide range between min and max means high manager discretion (active management); a narrow range means the fund tracks closer to the target (more index-like).

Asset class	Target	Min	Max
New Zealand income assets (including loans)	98.5%	70%	100%
Squirrel Wholesale Construction Loan Fund	—	0%	100%
Squirrel Wholesale Home Loan Fund	—	0%	50%
Cash and cash equivalents	1.5%	0%	30%

What can the Squirrel Monthly Income Fund actually invest in?

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