Ann: GENERAL: NZX: Smartshares to launch 2 new ETFs, appoints ETF market maker

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    • Release Date: 09/12/14 08:30
    • Summary: GENERAL: NZX: Smartshares to launch 2 new ETFs, appoints ETF market maker
    • Price Sensitive: No
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    					NZX
    09/12/2014 08:30
    GENERAL
    PRICE SENSITIVE
    REL: 0830 HRS NZX Limited
    
    GENERAL: NZX: Smartshares to launch 2 new ETFs, appoints ETF market maker
    
    Smartshares, NZX's funds management business, is pleased to announce that it
    has registered a prospectus for the launch of two new Smartshares Exchange
    Traded Funds (ETFs).
    
    The new Smartshares ETFs will be the Australian Property Index Trust (ASP)
    that invests in 16 listed Australian property companies; and the Australian
    Dividend Index Trust (ASD), the investment focus being the top 50 high
    dividend paying Australian listed companies.
    
    Smartshares ETFs are listed funds that aim to provide a return to unitholders
    that closely matches the return on a specific equity market index. The Aus
    Property Fund will track the S&P/ASX 200 A-REIT Equal Weight Index and the
    Aus Dividend Fund will track the S&P/ASX Dividend Opportunities Index.
    
    The new funds complement Smartshares' existing suite of ETFs, which
    comprises:
    
    - New Zealand Top 50 (FNZ) - The objective of smartFONZ 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 smartTENZ 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 smartOZZY 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 smartMOZY 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 smartMIDZ 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
    
    The announcement today follows NZX's announcement yesterday that it is
    acquiring leading New Zealand superannuation and passive funds manager
    SuperLife, providing the catalyst for Smartshares to further develop the ETF
    market in New Zealand. By combining SuperLife and Smartshares, NZX's funds
    management business will become the country's leading passive funds manager
    and provider of Exchange Traded Funds building on both businesses' passive
    investment approaches and proven track records.
    
    Smartshares intends to launch a broad range of domestic and international
    debt and equity ETFs in the next year to provide investors with greater
    choice and cost effective opportunities for further diversification.
    
    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 two 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 16 December 2014).
    
    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, and all the requirements of the Special Division relating to the
    application that can be complied with on or before the date of this
    announcement have been duly complied with. 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.
    
    Craigs Investment Partners appointed ETF market maker
    NZX is also pleased to announce that Smartshares has launched a market making
    initiative in association with Craigs Investment Partners (CIP), which is now
    underway.
    
    Under the agreement with CIP, during normal market conditions, CIP will offer
    two-way quotes of agreed minimum volume and maximum spread for an agreed
    minimum period of the full trading day.  This will cover all current
    Smartshares ETFs, plus future ETFs launched by Smartshares.
    
    Market making will enhance the liquidity of NZX's Smartshares' ETFs. Improved
    liquidity will allow investors to trade at prices closer to the funds NTA
    that will allow investors to achieve returns that more closely follow the
    indices that the Smartshares ETFs track.
    
    For further information, please contact:
    Kate McLaughlin
    Corporate Communications
    DDI: + 64 9 309 3654
    M: +64 27 533 4529
    E: [email protected]
    End CA:00258646 For:NZX    Type:GENERAL    Time:2014-12-09 08:30:06
    				
 
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