The Fifty of New Zealand Fund (FONZ), opening on today, will enable investors to ‘buy the market', as each FONZ Unit represents securities in the top 50 companies listed on the NZSX Market. They represent all major industry sectors in the economy from telecommunications to tourism, and each is capped at a 5% weighting that will ensure an even spread of diversification and risk.
NZXFM Director Mark Weldon said FONZ is an ideal way for New Zealanders to share in the success of New Zealand companies. “ New Zealand companies are performing exceptionally well by international standards, and their strength is reflected in their value on the share market. There's a vibrant economy out there that New Zealanders should be getting a piece of.
“But the door remains closed to many New Zealanders because they lack the confidence or the knowledge to invest in the New Zealand share market, or because they believe they lack the financial grunt,” Weldon said.
FONZ is designed to make it easy for more investors to participate in New Zealand's success, with a minimum $1,500 upfront unit purchase, automatic dividend reinvestment and the option of $50-per-month top-ups for IPO subscribers.
The NZSX 50 Portfolio Gross Index, to be tracked by FONZ, rose 28.8% last year and has risen a further 19.98% year to date.
“The New Zealand economy continues to perform strongly but our experience tells us that most New Zealanders don't have the opportunity to capitalise on that performance in a relatively low risk, high yield way. FONZ will help them do that,” Weldon said.
