Tower Managed Funds has made enhancements to its Tortis-Ozzy Australian index fund designed to make it more accessible to both stockbrokers and investors.
The Tortis-Ozzy Fund is a listed index fund which tracks the Australian Leaders Twenty Index. It was launched in February 1997 and has grown its funds under management to $131 million. This significant growth is closely linked to the strong performance of the Australian sharemarket which is reflected in the returns achieved by the fund. Tortis-Ozzy has produced net of tax returns to 17.2 per cent for the year to July 31 and 15.96 per cent for 2 years.
The minimum subscription required to create a Tortis-Ozzy basket has been reduced from 250,000 units to 150,000 units. A basket is the purchase of underlying company shares which is swapped by Tower Managed Funds for new Ozzy units. New baskets increase the overall number of units available to investors. Smaller investors can purchase a minimum of 1,000 existing Tortis-Ozzy units through the New Zealand Stock Exchange rather than create new baskets.
Reducing the minimum basket size opens up more basket purchase opportunities and reduces the financial risk a stockbroker faces when creating a basket. (At current unit values the amount required to create a basket is reduced by about $215,000). It also will improve the liquidity of the fund for smaller investors as more units are available for sale at fair value.
As part of the drive for fair value for all unit holders, the net asset value of the fund will now be advised daily to the NZSE who will advise the market. This price mirrors the index value and therefore represents a good guide of fair value.
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