The power of compounding: growing your investment over time

When it comes to long-term investing, time can be one of your greatest assets. That's because investment returns don't just have the potential to generate income, they can also be used to generate future income.

This is the principle of compounding. Rather than taking distributions as cash, investors can choose to reinvest them, increasing their investment holding over time. As those additional shares generate future distributions, the cycle continues, creating the potential for growth that builds on itself.

While compounding won't eliminate investment risk and outcomes will vary, it remains one of the most effective ways investors can put time to work in pursuit of their long-term financial goals.

Putting compounding into practice

Pacific Property Fund gives investors a simple way to harness the power of compounding through its reinvestment plan. The plan gives eligible investors the option to automatically reinvest their distributions into additional shares in the fund, helping grow their investment without needing to contribute additional capital.

For investors focused on building wealth over the long term, reinvestment can be a convenient way to remain invested and continue growing their investment in the Fund.

Why Pacific Property Fund?

Established in 2014, Pacific Property Fund is PMG's largest directly held commercial property fund, giving investors access to a diversified portfolio of quality commercial property across New Zealand. The Fund gives you access to a diversified portfolio of quality large-format retail, industrial and office properties - tenanted by some of New Zealand's most recognised brands.

Following the integration of the PMG Generation Fund in 2026, the Fund has grown in both scale and diversification, and is now the country's largest diversified unlisted commercial property fund open to retail investors.

See the difference reinvestment could make

While every investor's circumstances are different, understanding the potential impact of reinvestment can be helpful when considering your options. PMG's investment calculator allows you to explore different scenarios and see how reinvesting distributions could affect your investment over time.

Try the Pacific Property Fund Investment Calculator

If you're considering investing in the Pacific Property Fund or participating in the reinvestment plan, it's important to understand how it works and whether it aligns with your investment objectives. The Product Disclosure Statement contains important information about the offer, including details of the reinvestment plan, fees, risks and key investor considerations.*

Disclaimer: The information in this blog is general and current as of July 2026. It is not intended as regulated financial advice under the Financial Markets Conduct Act 2013 and does not consider your specific circumstances. PMG does not provide financial advice. Please consult a licensed financial advisor before making investment decisions.