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Fri, 27th Mar 2015
FYI, this story is more than a year old

NZX's Smartshares unit, which is being combined with new acquisition Superlife this year, is launching three more exchange traded funds, giving investors exposure to Australia's resource and financial sector and dividend-paying New Zealand stocks.

The Wellington-based stock market operator has registered prospectuses for three funds - the Australia Resources Fund tracking the S-P/ASX 200 Resources Index, the Australian Financials Fund, which follows the S-P/ASX 200 Financials Ex-A-REIT Index, and the NZ Dividend Fund which tracks the S-P/NZX 50 High Dividend Index, it said in a statement. The three funds come after it announced the Australian Property Index Trust and the Australian Dividend Index ETFs in December.

The stock market operator outsourced its indices to S-P Dow Jones Indices, the international market indices firm, to produce and commercialise new indices across equity markets and fixed income securities. It also acquired fund manager Superlife last year for $20 million in cash and shares, with a potential further earnings payout of $15 million.

NZX wants to use SuperLife as a platform to accelerate growth of its Smartshares ETFs and benefit from growth in the New Zealand funds management sector, which is expected to increase at an annual rate of between 10 percent to 15 percent over the next 10 years, driven by KiwiSaver and increased household savings generally. SuperLife had $1.27 billion funds under management as at Jan. 31, giving NZX a total FUM of $1.7 billion once its existing Smartshares business is included.

Shares of NZX last traded at $1.11 and have fallen 5.1 percent since the start of the year.