Brian Moss, co-manager of the firm's retail division, says the portfolios are pitched at people with relatively large amounts of capital (usually at least $25,000 to $50,000) who want their bond and equity market exposure through direct investments.
"We've had a lot of demand from financial planners wanting alternatives to unit trusts because of the high fees and taxation disadvantages," Moss says.
The new portfolio is touted as giving a moderately diversified exposure to leading companies on the New Zealand and Australian stock exchanges. Moss says it's a recommended portfolio of stocks rather than a product as such, so the only charges at present are transaction fees.
CS First Boston's New Zealand Leaders portfolio series includes, a six, 10, and 11 stock version. For international share exposure it offers two small portfolios which are made up of UK listed investment trusts.
The firm's approach isn't unique: for example, JB Were's PIPS has model portfolios of either eight or 12 stocks in the categories New Zealand income, New Zealand balanced, Australasian income and Australasian balanced. Investors need at least $30,000 to get started and stock recommendations are reviewed monthly.
However, Craig & Co takes a different tack with START, a more formal savings plan with a custodial service. Again, the idea is to avoid the high fees and capital gains tax implications and poor performance of many traditional alternatives.
However, investors can dripfeed their contributions, from as little as $100 a month, and the firm uses investment trusts and index funds rather than any individual stocks to provide direct sharemarket access.
| « Cowpats flying over the farm | Get your tax questions answered online » |
Special Offers
© Copyright 1997-2024 Tarawera Publishing Ltd. All Rights Reserved