Note: The KiwiFruit Fund is scheduled to hold its first Quarterly Unit Auction from 5 to 7 November 2024.

The Fund will publish its first Quarterly Report by 19 October 2024 – please click on the Documents Tab to review this report.

The MyFarm KiwiFruit Fund is an opportunity for wholesale investors to invest in a diversified portfolio of established SunGold^TM kiwifruit orchards and Zespri shares, that is targeting a return of 10% p.a.*

With a combined asset value approaching $200 million, MyFarm KiwiFruit Fund is one of New Zealand’s largest kiwifruit investments. Investors in the Fund will share in the ownership of 17 orchards (160 hectares) located across Bay of Plenty and Northland, and planted almost exclusively (97%) in SunGold.** The Fund has ambitions to continue to build on its position as one of Zespri’s top 5 shareholding entities – with an aim to invest up 15% of its assets in these historically-lucrative shares.

The kiwifruit industry is undoubtedly one of New Zealand’s best export success stories, with exports forecast to continue to grow to an estimated $3.3 billion in 2025.[1] SunGold is New Zealand’s most productive, most profitable kiwifruit variety – providing the potential for high grower returns. By virtue of its size, one of the Fund’s standout features is its eligibility and capability to take a significant shareholding in Zespri – the world’s biggest kiwifruit exporter. Only growers can invest in these shares, which have a track record of paying gross dividends in the range of 15-25% p.a.

Investment Highlights.

• An investment in a portfolio of 17 SunGold kiwifruit orchards located in Bay of Plenty and Northland and a significant holding of Zespri shares (ZGL).
• Targeted total return, including capital growth, of 10% p.a.*.
• Targeted cash distributions of 7.5% p.a., from year two of the Fund. In the first year, the Fund is targeting distributions of 4.5% p.a.
• Cash returns will be driven by orchard profitability and income from shares in Zespri Group Limited.
• Tax benefits: from depreciation of SunGold licence and imputation credits. For investors on a 33% tax rate, the first year’s distributions target of 4.5% is estimated to be the equivalent of a 5.9% p.a. return on a fully taxable investment.
• Minimum investment $20,000.
• Available to wholesale investors only. 

The scale of the Fund provides significant benefits for investor returns:

• Access to multiple revenue streams: orchard income and dividends from Zespri shares. The Fund aims to own up to 7.6 million Zespri shares (half of its entitlement) or 15% of its total asset value, whichever is greater.
• Potential to provide consistent returns. Geographic diversification means capital expenditure costs are spread across a bigger base – as are the risks from weather and other one-off events.
• Economies of Scale. Reduced costs, including financing and overheads, due to the scale of the Fund.
• Strategic Agility. Potential to keep improving the quality of the portfolio by reinvesting in existing orchards or trading up (selling and buying orchards).

The MyFarm KiwiFruit Fund is open to wholesale investors - it is not available for retail investors.

Please click on the Documents tab to access the Fund’s first Quarterly report and the Information Memorandum dated 24 July 2024.

[1] Ministry for Primary Industries (June 2024), Situation and Outlook for Primary Industries, p. 90. mpi.govt.nz/dmsdocument/62637-Situation-and-Outlook-for-Primary-Industries-SOPI-June-2024

*The Fund is targeting total returns of 10% per annum (cash distributions and capital growth) from Year Two. In the first year of the Fund,distributions are forecast at 4.5% p.a. Returns may vary and are subject to risks as outlined in Information Memorandum, available at www.myfarm.co.nz/kiwifruit-fund.

**The Fund owns 17 orchards totalling 160 canopy hectares - made up of 156 canopy hectares licensed with SunGold kiwifruit and 4 canopy hectares currently growing rootstock.