Pohutukawa Funds Structure

Pohutukawa Funds Structure

Investors hold both ordinary and redeemable preference shares in the Pohutukawa funds.

Investors also hold redeemable preference shares in each of the Pohutukawa investment companies, which make the investments in the portfolio companies.

As an example, the investment in the Pohutukawa II portfolio company Transaction Services was made through the investment company Pohutukawa Alpha. Pohutukawa investors hold redeemable preference shares in Pohutukawa Alpha.

These are called stapled securities. The number of ordinary shares on issue remains constant while the ratio of preference shares reduces as investments are realised and preference shares are redeemed.