PLP – Quarterly Client Update – 31 December 2020

PLP – Quarterly Client Update – 31 December 2020

18 January 2021

Booster Investment Management Limited as Manager of the Fund (the Manager), has provided a copy of
the Quarterly Client Update for the quarter ended 31 December 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 31 December 2020

1
v
Portfolio Performance
The Private Land and Property Fund (PLPF) returned 1.1% for the three
months to 31 December 2020 and 5.7% 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.
In search of income – what are the options?
With central bankers around the world committing to keep interest
rates low for many years to come, this creates an issue for investors
looking for income.
Traditional defensive assets such as cash and fixed income, which may
form a large percentage of investment portfolios, are now producing
levels of income returns that are significantly below historical averages.
For many investors this low yielding environment presents a dilemma
and could pose several questions:
1. Should you reduce your level of spending?
2. Should you consider a higher allocation to riskier assets such
as shares or property, or
3. Adopt a total return approach to investing and start drawing
down your capital?
The total return (which is the combination of the capital gains and the
income) of an investment portfolio should normally be considered a
pool of money available to be drawn on as required. Not just the
interest or dividend payments.
Viewing returns as returns – regardless of where they come from –
means you can construct or maintain a balanced portfolio of assets that
matches your tolerance for risk.
Take for example a term deposit of $500,000. With term deposits
paying around 1%, it would generate pre-tax earnings of $5,000 per
year. Ten years ago, higher interest rates meant that the same term
deposit would have earned around $25,000 per year pre-tax.
2020 2010 2020
Amount invested $500,000 $500,000 $2,500,00
Interest rate 1.0% 5.0% 1.0%
Income received
per annum
(pre-tax)
$5,000 $25,000 $25,000




Looking at this another way the same term deposit required today to
generate $25,000 pre-tax would require an investment of $2.5m
With inflation hovering around 2%, it’s likely that less money is being
made on the returns in term deposits vs a balanced or diversified
portfolio.
In all investments there are both income risks and capital
risks. Generally, those prepared to accept higher risks are rewarded,
but a clear understanding is required of what risks you face, and you
need to ensure you are receiving sufficient return for accepting those
risks.
Booster’s Private Land and Property Fund (PLPF) may be an option
worth considering as part of a portfolio that introduces additional risk
with the expectation of higher returns. It invests in productive
viticulture and horticultural land and makes income either from
cropping or rents the land out to companies which want to grow or
supply crops – such as wineries. The income from rent is distributed to
investors.
The target return is well above current term deposit rates but note that
it also comes with some increased level of risk.
While the Private Land and Property Fund is not designed to be a
complete replacement for term deposits, allocating some of your funds
to PLPF may be a good complement to other investments in your
diversified portfolio.
The right approach to dealing with the challenge of today’s low interest
rates depends on your goals and circumstances — your financial adviser
will be able to help you consider how best to work through this.

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.
.
PLPP Investment Holdings (%)
2


Vineyard property in Awatere Valley, Marlborough 25%
Vineyard property in Hope, Nelson 21%
Kiwifruit Orchard property in Kerikeri, Northland 21%
Vineyard property in Hawke's Bay 11%
Vineyard property in Mahana, Nelson 5%
NZ Cash (BNZ Bank Trust Account) 17%
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 which results in ANZ
holding a security interest over all of the assets held by the Private Land and Property Portfolio.

Booster Investment Scheme 2
Private Land and Property Fund

Update as at 31 December 2020

3
Gross Asset Value comprises the net asset value of the investments held and the drawn portion of the ANZ loan facility.
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.
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 damage 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

v
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.


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.

All figures are after fees. Please see the Product Disclosure Statement
for further details.





Key Facts (PLPF)
Fund Size
(net asset value)
$56.5 million
Inception Date 7/01/2019
Manager Booster Investment Management Limited
Supervisor Public Trust
Fund Type Portfolio Investment Entity (PIE)


Key Facts (PLPP)
Fund Size
(net asset value)
$55.7 million
Gross Asset Value
3
$74.2 million
Inception Date 13/06/2017
Manager Booster Investment Management Limited
Supervisor Public Trust
Fund Type Portfolio Investment Entity (PIE)
PLPF Performance as at 31-Dec-2020
4

Before Tax
After Tax
at 28%
Last month 0.4% 0.3%
Last 3 months 1.1% 0.9%
Last 6 months 2.8% 2.4%
Last 12 months 5.7% 4.8%
Last 2 years (p.a.)
4
7.3% 6.3%
Last 3 years (p.a.)
4
9.3% 8.3%
Since Inception 13/06/2017 (p.a.)
4
8.8% 7.7%