Tax changes help birth of Aust shares portfolio
First New Zealand Capital has expanded its range of model portfolio options by adding an Australian Shares portfolio.
Thursday, March 8th 2007, 7:07AM
Like its New Zealand, Australasian and international options there are a number of portfolios with varying numbers of companies in them.
The 6 stock portfolio is considered suitable for investible funds of up to $75,000, the 10 stock portfolio for sums of more than $75,000 but less than $150,000 and the 15 stock portfolio for investible sums greater than $150,000.
First NZ says the Australian Shares Portfolio objective will be to outperform the S&P/ASX All Ordinaries Accumulation Index expressed in NZ dollars.
It says “the introduction of the Fair Dividend Rate international tax regime, and the exemption granted to Australian listed companies that are tax resident in Australia and represented in the All Ordinaries Index, support our decision to establish this new Portfolio Series.
"We have selected shares for inclusion in the new portfolio series that we believe qualify for the exemption from the FDR regime."
The six stock portfolio is diversified by activity or sector, and the smallest company is Orica which has a market capitalisation of A$7.8bill. Its capital return for the 3 years ended December 31 (in NZD) has been 24.1% annually.
The 10 stock portfolio has more diversification and added exposure to resources. Its average return over three years has been 24.7%.
The 15 stock portfolio has greater diversification benefits and long term growth potential. Its average return over three years has been 27.5%.
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