PLP – Quarterly Client Update

PLP – Quarterly Client Update – 30 September 2020

14 October 2020

Booster Investment Management Limited as Manager of the Fund (the Manager), has provided a copy of
the Quarterly Client Update for the quarter ended 30 September 2020.

For further information regarding the Private Land and Property Fund visit
www.booster.co.nz/booster-
investments/private-land-and-property-fund




For more information, please contact:
Gary Scott
Company Secretary
Booster Investment Management Limited
04 8944300


About Booster
Booster Investment Management Limited (Booster) is the manager and issuer of the Fund, and part of
the Booster Group which has been helping New Zealanders save since 1998. The group currently
administers superannuation and investment funds of over $3.5 billion on behalf of more than 120,000
New Zealanders.
For more information, including a copy of the Product Disclosure Statement, please visit
www.booster.co.nz

Booster Investment Scheme 2
Private Land and Property Fund
Update as at 30 September 2020


1
Portfolio Performance
The Private Land and Property Fund (PLPF) returned 1.6% for the
three months to 30 September 2020 and 6.2% for the last year
(after fees and before tax). PLPF invests through the wholesale
Booster Private Land and Property Portfolio (PLPP)
1
.

Portfolio changes
There were no portfolio changes during the quarter.

The challenge of improving yield!
In today’s low interest rate environment, many investors are
looking at ways to increase the yield on their investments where
term deposits and other investments sink close to zero.

Given the current economic environment we see interest rates
staying at relatively low levels for some time. It may be time to
reconsider how you allocate your investments and include an
exposure to property alongside your cash, fixed income and
shares.
Spotlight on viticulture
The Private Land and Property Portfolio (PLPP) receives a
combination of rental income, operating income from grape supply
agreements and capital appreciation.

It currently has lease and grape supply agreements across four
vineyards situated in Marlborough, Nelson and the Hawkes Bay,
and a kiwi fruit orchard located in Kerikeri, Northland. On the
viticulture side, the lessees produce grapes for well-known brand
names Awatere, Waimea and Sileni (part of the Booster Wine
Group family of brands) as well as other well-known third parties.
The kiwifruit orchard is leased to Seeka, a publicly listed company
that offers professional orchard management services to kiwifruit
growers.

Booster has plans to upscale the Fund through further investment
across industries that meet the investment criteria.

Despite the challenges of the past 12 months, in the year ended
July 2020 the industry managed to achieve record exports totalling
$1.94 billion, up 6% on last year.

The United States continued to be New Zealand wine's largest
market with over $600m in exports, followed by the United
Kingdom with $480m and then Australia at $370m.

Wine is exported to more than 100 countries and is New Zealand's
seventh biggest export good. Sauvignon Blanc is the largest
export variety by volume and dollar value.












1
For further information of how PLPF invests through PLPP refer to the Private Land and Property
Fund Other material Information document on the booster.co.nz website.
2
ANZ Bank New Zealand Limited (ANZ) has provided a loan facility of up to 50% of the value of the
secured properties for use by the Private Land and Property Portfolio to effect its gearing strategy
Wine exports by country

Country $m’s % change (year)
USA 617 10%
UK 480 7%
Australia 370 0.2%
Canada 136 8%
Germany 64 48%
China 27 -27%
July 2020 - NZ Wine




Sun rising over Sileni vineyard in the Hawkes Bay


PLPP Investment Holdings (%)
2


Vineyard property in Awatere Valley, Marlborough
This investment is in three properties situated in the Awatere
Valley being Barewood Vineyard, Upton Downs, and Flemings
Road. These vineyards have grape supply agreements (GSA) with
Booster Wine Group. The GSA structure sees PLPP take the risk
and return of crop volumes for these properties, versus a fixed
rental.

Barewood Vineyard and Upton Downs properties are yet to reach
full maturity having been developed in 2018 and 2019 and are
expected to deliver increased harvest volumes as they mature .





which results in ANZ holding a security interest over some of the assets held by the Private Land
and Property Portfolio.
Vineyard property in Awatere Valley, Marlborough 27%
Vineyard property in Hope, Nelson 24%
Kiwifruit Orchard property in Kerikeri, Northland 23%
Vineyard property in Hawke's Bay 12%
Vineyard property in Mahana, Nelson 6%
NZ Cash (BNZ Bank Trust Account) 8%

Booster Investment Scheme 2
Private Land and Property Fund
Update as at 30 September 2020

Disclaimer This document is for information purposes only. The information is derived from sources believed to be accurate as at the date of issue and may change. The content is of
a general nature and does not take into account your financial situation or goals and is not financial advice.
Neither Booster Financial Services Ltd nor any of its related companies (Booster) accepts any liability for any loss or damag e arising directly or indirectly out of the use of, or reliance on,
the information provided in this document. Booster Investment Management Ltd is the manager and issuer, and Public Trust is the supervisor, of the Booster Investment Scheme 2,
Private Land and Property Fund. None of Booster, Public Trust, or any director, board member or nominee of any of those entities, or any other person, guarantees the Scheme’s
performance, returns or repayment of capital. The Scheme’s Product Disclosure Statements are available at www.booster.co.nz or by contacting your financial adviser or by calling
Booster on 0800 336 338. A disclosure statement is available, on request and free of charge, from your financial adviser.
2

Vineyard property in Hope, Nelson
This investment is in the former Waimea winery and associated
vineyards in Nelson. The vineyard and winery are leased to
Booster Wine Group on a long-term lease.
Vineyard property in Hawke's Bay
This investment is in three vineyards formerly part of Sileni Estates,
including Talbot, Wedd and Winery vineyard properties and a
winery building. All are leased to Booster Wine Group on a long-
term lease.
Vineyard property in Mahana, Nelson
The property at Mahana is a state-of-the-art gravity fed winery.
This, and the surrounding vineyard is leased to Booster Wine
Group on a long-term lease.

Kiwifruit orchard, Kerikeri, Northland
The ~50 ha property encompasses 20 canopy hectares of G3 or
gold kiwifruit, most of which was grafted onto existing stumps in
2019. Another ~11 ha is planted in lemons and 3-4 ha remains
available for horticultural use.

The property is under lease to Seeka for 15 years (from 2019) at a
fixed rental linked to capital values and incorporating an option at
year 5 for PLPP to assume the risks and rewards of operatorship.

Key Facts (PLPF)

Key Facts (PLPP)




















3
Gross Asset Value comprises the net asset value of the investments held and the drawn portion
of the ANZ loan facility.
Risk Indicator
The Risk Indicator is rated from 1 (low) to 7 (high). The
rating reflects how much the value of the Fund's assets go
up and down (volatility). A higher risk generally means
higher potential returns over time, but more ups and
downs along the way.


Upton Downs Vineyard in Marlborough


PLPF Performance as at 30-Sep-2020
4

All figures are after fees. Please see the Product Disclosure Statement for further details.
4
Returns prior to the PLPF inception date are based on the underlying wholesale Private Land and
Property Portfolio return. Past performance is not an indicator of future performance.
Fund Size (net asset value) $50.0 million
Inception Date 7/01/2019
Manager Booster Investment Management Limited
Supervisor Public Trust
Fund Type Portfolio Investment Entity (PIE)

Fund Size (net asset value) $48.8 million
Gross Asset Value
3

$67.4 million
Inception Date 13/06/2017
Manager Booster Investment Management Limited
Supervisor Public Trust
Fund Type Portfolio Investment Entity (PIE)



Before
Tax
After Tax
at 28%
Last month 0.6% 0.6%
Last 3 months 1.6% 1.4%
Last 6 months 3.1% 2.6%
Last 12 months 6.2% 5.2%
Last 2 years (p.a.)
4

7.9% 6.7%
Last 3 years (p.a.)
4

9.4% 8.4%
Since Inception 13/06/2017 (p.a.)
4

9.1% 8.0%

Potentially lower returns
ower ris
Potentially hi her returns
i her ris