New Zealanders Keen To Save, Says NZX

Two weeks since the launch of its newest Smartshares fund- the Fifty of New Zealand (FONZ) – close to three quarters of new investors are signing up for the fund's savings plan, according to NZX Funds Management Limited (NZXFM).

The numbers have surprised NZXFM Director Geoff Brown, who spearheaded the FONZ public seminars in the main centres when the IPO opened on 15 November.

“Feedback from investors indicated they wanted a means of saving as well as investing in top performing companies. As at the end of last week, 74 per cent of the people investing in FONZ have elected to be part of the savings plan as well.

“This percentage has surprised us. It shows that New Zealanders are keen to save – they just need the tools to do it relatively cheaply and easily,” said Brown.

FONZ unit holders can contribute as little as $50 a month to increase their FONZ holdings after making an initial investment of $1,500 or more. They will have their dividends reinvested automatically unless they opt to take them in cash.

The savings plan option is currently only open to investors who sign up during the FONZ IPO period, which ends this Friday (3 December).