FONZ appeals to new investors

10 December 2004 – Fifty of New Zealand (FONZ), the latest fund in NZX Funds Management's (NZXFM) Smartshares family, will list and commence trading at 10.00am today.

FONZ, aimed at first time investors and more experienced investors who want a diversified core to their portfolios, attracted the largest numbers of small investors of all the exchange traded funds introduced this year by NZXFM.

“Because many of these people are first time investors with relatively modest sums to invest, the overall number raised in the IPO is also modest by typical IPO standards,” said NZXFM Director Geoff Brown.

“But what's telling for us is the sheer numbers of people signing up to the fund, and the proportion of those who have chosen to be part of the regular savings plan. That's what we hoped for, but we underestimated the appeal of the plan,” said Brown.

FONZ is a way for both first time and experienced investors to ‘buy the market', as each FONZ Unit represents securities in the top 50 companies listed on the NZSX Market. In addition, FONZ unit holders who signed up to the associated savings plan can contribute as little as $50 a month to increase their FONZ holdings and will have their dividends reinvested automatically unless they opt to take them in cash. A binding ruling from the IRD also means FONZ pays no tax on share price gains.

NZXFM is pleased with the spread of investors in the public pool. The IPO had raised $17.29 million by the time it closed last Friday.

Applications are still being received from prospective FONZ members, and NZXFM has had plenty of interest from people who have deferred the decision to subscribe till after Christmas.

“Given the strong level of interest in FONZ, we're confident that the fund will grow through time to more than double its current level,” said Brown.

For more information, please contact:

Rowan Macrae
Corporate Affairs
NZX Funds Management Limited
04-496-2874
027-472-7599

More information on FONZ can be found on the Smartshares website at www.smartshares.nzx.com.