Smartshares, NZX’s Exchange Traded Funds (ETFs) business, is pleased to announce it has registered a prospectus for the launch of three new ETFs to complement to its existing seven Smartshares ETFs.
The new Smartshares ETFs are the:
1. New Zealand Dividend Fund (DIV), that invests in 25 of the highest dividend paying New Zealand listed companies
2. Australian Resources Fund (ASR), that focuses on listed Australian resources sector companies
3. Australian Financials Fund (ASF) that focuses on listed Australian financial sector companies
Smartshares ETFs are listed funds that aim to provide a return to unit holders that closely matches the return on a specific equity market index or predefined group of shares.
The NZ Dividend Fund tracks the S&P/NZX 50 High Dividend Index, the Australian Financials Fund tracks the S&P/ASX 200 Financials Ex-A-REIT Index, and the Australian Resources Fund tracks the S&P/ASX 200 Resources Index.
Smartshares announced in December 2014 its intention to launch a broad range of domestic and international debt and equity ETFs, following the announcement that NZX would acquire leading New Zealand superannuation and passive funds manager SuperLife. Together, SuperLife and Smartshares have more than $1.7 billion of funds under management.
The new funds announced today will provide investors with further cost effective opportunities to broaden their investment portfolio into income and sector funds, and complement Smartshares’ existing suite of ETFs, which comprises:
• Australian Property Index Trust (ASP) – the objective of this fund is to provide a return that closely matches the S&P/ASX 200 A-REIT Equal Weight Index
• Australian Dividend Index Trust (ASD) – the objective of this fund is to provide a return that closely matches the return on the S&P/ASX Dividend Opportunities index
• New Zealand Top 50 (FNZ) – the objective of this fund is to provide a return that closely matches the return on the NZX 50 Portfolio Index. The NZX 50 Portfolio Index comprises 50 of the largest entities listed on the NZX Main Board
• New Zealand Top 10 (TNZ) – the objective of this fund is to provide a return that closely matches the return on the NZX 10 Index. The NZX 10 Index comprises 10 of the largest entities listed on the NZX Main Board
• Australian Top 20 (OZY) – the objective of this fund is to provide a return that closely matches the return on the S&P/ASX 20 Index. The S&P/ASX 20 Index comprises 20 of the largest entities listed on the ASX
• Australian Mid Cap (MZY) – the objective of this fund is to provide a return that closely matches the return on the S&P/ASX MidCap 50 Index. The S&P/ASX MidCap 50 Index comprises 50 entities ranked from 51 to 100 by market capitalisation and liquidity on the ASX
• New Zealand Mid Cap (MDZ) – the objective of this fund is to provide a return that closely matches the return on the NZX MidCap Index. The NZX MidCap Index comprises a broad range of medium sized New Zealand entities listed on the NZX Main Board
Smartshares is a wholly owned subsidiary of NZX and is the pioneer of ETFs in New Zealand, having launched the first New Zealand ETF in 1996.
No applications for the three new ETFs will be accepted unless the subscriber has received an investment statement (available at www.smartshares.co.nz following quotation, which is expected to commence on Tuesday 7 April).
Smartshares has applied to Special Division (that regulates Smartshares in place of NZX) for permission to quote the units in the new funds on the NZX Main Board. However, the Special Division accepts no responsibility for any statement in this announcement or in respect of the offer. The NZX Main Board is a licensed market operated by NZX Limited, a licensed market operator regulated under the Financial Markets Conduct Act 2013.
