NZX
13/06/2016 08:43
GENERAL
NOT PRICE SENSITIVE
REL: 0843 HRS NZX Limited
GENERAL: NZX: Smartshares celebrates 20 years of ETFs in New Zealand
Smartshares, NZX's Exchange Traded Funds (ETFs) business this month
celebrates 20 years since the launch of the first ETF in New Zealand - the NZ
Top 10 (TNZ) fund, which aims to provide returns that closely match the
return on the S&P/NZX 10 Index.
New Zealand was the fourth country in the world to launch ETFs behind Canada
(1990), the USA (1993) and Japan (1995).
When the NZ Top 10 fund launched, it included: Air New Zealand; Carter Holt
Harvey; Fletcher Challenge Forestry Division; Fletcher Challenge; Brierley
Investments; Goodman Fielder; Lion Nathan; Fernz Corporation; Telecom
Corporation of New Zealand; amd Wilson and Horton.
Today, it include Auckland International Airport; Contact Energy; Fletcher
Building; Fisher & Paykel Healthcare Corporation; Meridian Energy; Ryman
Healthcare; SkyCity Entertainment Group; Sky Network Television; Spark New
Zealand; and Z Energy.
As the pioneer of ETFs in New Zealand, Smartshares is committed to developing
products that offer investors a range of diversified, low-cost and easily
accessible investment options. Smartshares offers New Zealand's broadest
range of passive funds across the main asset classes, cash, bonds, shares and
property.
Over the past 20 years Smartshares has demonstrated significant growth, with
more than 50,000 investors now having an investment in its ETFs through
financial advisors and KiwiSaver schemes, while the number of direct
unitholders has risen to more than 10,000. This growth in wholesale and
retail investors has seen on market trade volumes increase to more than $100
million year to date. In addition, total Smartshares funds under management
has now surpassed $1.6 billion.
In 2014, NZX significantly increased its investment in and strategic focus on
growing the Smartshares business and the range of ETFs on offer. From
December 2014 to November 2015, Smartshares boosted its portfolio of ETFs,
listing 18 new funds on the NZX Main Board, bringing the total number of ETFs
on offer to 23. The new ETFs allow investors to create personalised, globally
diversified portfolios, by investing withNew Zealand currency.
NZX's significant investment in creating new ETFs reflects its commitment to
the development of New Zealand's passive funds management industry, which has
been a high-growth sector globally, and an area where NZX sees considerable
potential.
NZX Head of Funds Management Aaron Jenkins commented: "Smartshares has played
a critical role in the development of ETFs in New Zealand, and NZX's
continued investment in this business signals our commitment to creating a
vibrant market that offers investors diversified, low-cost, accessible
investment solutions."
Smartshares is currently focussed on increasing market awareness of its ETFs
and continuing to educate retail and wholesale investors about its product
offering and the benefits ETFs provide.
To improve transparency, the Smartshares website (www.smartshares.co.nz) has
recently been updated to include historic dividends, market announcements and
fund factsheets and summary pages. For direct investors, an online
verification system has also been implemented enabling ETF application forms
to be completed online, without the need to submit physical copies of
identification documents.
For further information please contact:
Kate McLaughlin
Head of Communications
T: 09 309 3654
M: 027 533 4529
E: [email protected]
About Smartshares
Smartshares is the pioneer of ETFs in New Zealand, launching the first ETF
(TNZ - the NZ Top 10 Fund) in 1996. Smartshares is New Zealand's only issuer
of ETFs listed on the NZX Main Board, with in excess of 10,000 unit holders
and more than NZD $1.6 billion of funds under management. The Special
Division of the New Zealand Markets Disciplinary Tribunal regulates
Smartshares in a similar way to NZX Regulation's regulation of other listed
issuers. Smartshares funds are listed on NZX so you can buy or sell them just
like individual shares. The listed funds are designed to "track" (or, in some
cases, outperform) an index. Each Smartshares ETF is designed to provide
investors with similar returns to a direct investment in all the securities
that make up the ETF. To learn more and obtain a copy of the investment
statement for each of the ETFs please visit: www.smartshares.co.nz
About NZX Limited
NZX builds and operates capital, risk and commodity markets and the
infrastructure required to support them. We provide high quality information,
data and tools to support business decision making. We aim to make a
meaningful difference to wealth creation for our shareholders and the
individuals, businesses and economies in the countries in which we operate.
To learn more about NZX please visit: www.nzxgroup.com
End CA:00283909 For:NZX Type:GENERAL Time:2016-06-13 08:43:36
