Pathfinder funds to track Solactive indices with 50% NZD hedge

Pathfinder Asset Management has filed prospectuses for two funds that will track Solactive indices. The Pathfinder Global Responsibility Fund will follow the Solactive GBS Developed Markets ex Australia Large & Mid Cap 50% Hedged to NZD Index NTR. The Pathfinder Global Water Fund will track the Solactive GBS Developed Markets Water All Cap 50% Hedged to NZD Index NTR.

Both indexes hedge 50 percent of currency exposure to the New Zealand dollar using FX forward contracts with a one-month maturity. The forward contracts are rolled and rebalanced monthly to maintain the 50 percent hedge. The Water index is calculated from the Solactive GBS Developed Markets Water All Cap NZD Index before the partial NZD hedge is applied.

Solactive said the ex-Australia index is part of its GBS Hedged Index Series and described the hedge as a standard currency-hedged index calculation in which the FX forward component is adjusted monthly to preserve the target hedge level. The firm said the indexes provide rules-based exposure to developed-market equities while reflecting a partially hedged NZD currency profile.

Timo Pfeiffer, Solactive’s chief markets officer, commented: “We are pleased to support Pathfinder Asset Management with benchmark solutions aligned with its investment approach.” David Lewis, Pathfinder’s chief investment officer, noted that Pathfinder selected Solactive after assessing its customer service, analytical insight and cost-effective benchmarking capabilities.

The prospectus filings formalize the funds’ benchmark choices and give investors a defined reference for measuring performance, with exposure to developed-market equities and water-sector companies combined with a consistent, partially hedged NZD profile.