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- Release Date: 29/06/12 12:00
- Summary: GENERAL: WIN: Closure of AMP Investments' World Index Fund
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WIN
29/06/2012 10:00
GENERAL
REL: 1000 HRS AMP Investments' World Index Fund (NS)
GENERAL: WIN: Closure of AMP Investments' World Index Fund
Closure of AMP Investments' World Index Fund
The Board of AMP Investment Management (N.Z.) Limited has today resolved to
close the AMP Investments' World Index Fund ("WiNZ" or "the Fund").
WiNZ will close on 17 September 2012 and no new subscriptions will be
accepted for the Fund from today, 29 June 2012.
An application has been made to the NZX for the Fund to be delisted from on
or about 30 July 2012.
Reason for closure
WiNZ was developed in 1997 to provide investment into global shares through a
passive investment structure which, based on a tax ruling, did not tax
capital gains for passive share investment funds.
WiNZ also invested in seven "grey list" countries only (Australia, Canada,
Germany, Japan, Spain, the United Kingdom and the United States), which were
treated the same as New Zealand-based investments for tax purposes.
In 2007, changes to the taxation of offshore portfolio investments meant the
"grey list" was removed and the tax ruling ceased for passive investment
funds. This, combined with the introduction of the Portfolio Investment
Entity (PIE) rules (also in 2007), has resulted in a significant reduction in
the size of the Fund, which means the remaining investors are paying a higher
proportion of the costs to maintain the Fund.
Therefore, the Board of AMP Investment Management (N.Z) Limited believes it
is not in the best interests of the remaining unit holders to keep the Fund
open.
What the closure means for investors
Investments in the Fund will be realised and paid to investors' in cash (net
of expenses) shortly after the Fund closes.
The Board has also resolved to pay a special dividend from the Fund during
the week beginning 10 September 2012 of an amount to be determined by the
Board based on the net profit of the Fund. The exact date for payment of the
dividend is to be determined along with the record date and ex date.
Contact
George Carter, Head of Distribution, 09 927 1661.
End CA:00224424 For:WIN Type:GENERAL Time:2012-06-29 10:00:02
