First NZ Capital taps demand for yield with new PIE fund
First NZ Capital Group's investment management unit has launched its first bond fund in a PIE structure, taking advantage of demand for yields offered by well-rated corporates.
Monday, 11 May 2009
by Paul McBeth
The First NZ Capital NZ Bond Fund has grown 1.5% to $18.1 million since it was first invested two months. The average credit rating on securities in the fund will be A-, said chief operating officer Jody Kaye.
"This will be the flagship" fund, Kaye said. It is targeted at clients and advisers looking to invest in a diverse range of quality fixed interest securities.
Investors have snapped up company debt offerings as returns offered on term deposits and saving accounts have dwindled. The current unit price for the fund is $1.0077, with a running yield of 8.06%. Over 23% of its current holdings are in ASB AA rated bonds. Its third-largest holding is 8.1% in a Fonterra issue.
Kaye said the fund will focus on investment grade bonds. Any potential investments outside these parameters require the approval of the investment committee, and would have to be high calibre offerings from strong issuers, such as Fletcher Building, he said.
First NZ Capital currently operates four funds, but this is its first that will utilise a PIE structure. Kaye said the investment manager plans to be more active in the market, but has no other offerings in the pipeline.
Kaye said the fund will be priced daily with quarterly distributions.
Commenting is closed
Find a Rate
10 July 2014
2 July 2014
25 June 2014
15 May 2014
14 May 2014
Cash PIE Rates
Disclaimer - Every possible effort has been made to keep the information in the tables and on this site as accurate as possible, however, neither the publisher, Tarawera Publishing, nor anyone engaged to compile the rates and this site accept any liability for inaccuracies or any loss suffered as a result. It is strongly advised that readers check loan details with providers. The full terms and conditions of this site can be found here.
© Copyright 1997-2015. Tarawera Publishing Ltd. All Rights Reserved.