Scoop Business

Tower Launches 2 New Innovative Funds

Thursday, 13 April 2006, 5:15 pm
Press Release: Tower

April 13, 2006

TOWER has launched two innovative managed fund products into the New Zealand market, the TOWER Extended Markets Fund and the TOWER Global Commodity Fund.

“TOWER has taken the initiative in bringing out two new options in the higher risk/return category of managed fund investments that have been highly successful in overseas markets,” TOWER Investments Chief Executive Officer Tony Hildyard announced today.

“The TOWER Global Commodity Fund is the first New Zealand-domiciled commodity fund of its type to be launched to the general public here and expands the range of alternative assets available in this country.”

“The TOWER Extended Markets Fund introduces both emerging market and US high yield corporate bonds combined together as a package that can complement traditional fixed interest investments.”

“TOWER’s leadership in the managed funds field is reaffirmed by this product launch”

“These two funds are highly original within the context of the New Zealand investment markets,” he said, “and serve to reaffirm TOWER’s close relationship with PIMCO, the underlying manager”

The TOWER Extended Markets Fund is an international fixed income fund that specialises in emerging market and corporate high yield bonds. The benchmark is a combination of 55% JP Morgan Emerging Markets Global Bond Index and 45% Merrill Lynch US High Yield BB/B Index, both 100% hedged into the New Zealand dollar. The fund represents a higher risk/return profile than traditional international fixed income funds.

Advertisement - scroll to continue reading

The TOWER Global Commodity Fund is a collateralised commodity fund that tracks its benchmark, the Dow Jones-AIG Commodity Index Total Return Index. The index represents the collateralised return of an annually rebalanced basket of long-only futures contracts on 19 commodities in six industrial categories: energy, industrial metals, precious metals, livestock, grains and food/fibre. Commodities are selected for index representation based on their futures market liquidity and US dollar-denominated global physical production.

PIMCO (Pacific Investment Management Company), the underlying manger of both funds, is the world’s largest bond manager and the largest manager of collateralised commodities. Presently it manages NZ$1.2 billion in global aggregate bonds on behalf of TOWER.

The two new funds are the initial offerings in the TOWER Mezzanine Investment Series, which is specifically aimed at distribution through the New Zealand wrap platform market. The TOWER Extended Markets Fund is designed to supplement fixed income allocations, while the TOWER Global Commodity Fund is intended to augment allocations to alternative investments. Both funds are New Zealand-domiciled, fully hedged to the New Zealand dollar, and feature daily unit pricing.

ENDS

Advertisement - scroll to continue reading

Did you know Scoop has an Ethical Paywall?

If you're using Scoop for work, your organisation needs to pay a small license fee with Scoop Pro. We think that's fair, because your organisation is benefiting from using our news resources. In return, we'll also give your team access to pro news tools and keep Scoop free for personal use, because public access to news is important!

Go to Scoop Pro Find out more

Find more from Tower on InfoPages.

Business Headlines | Sci-Tech Headlines

BUSINESS, SCIENCE & TECH

John Mazenier: Gaffer Tape And Glue Delivering New Zealand’s Mission Critical Services

Every debt, eventually, has to be repaid. Right now, the day of reckoning is fast approaching for one of the most crippling, but least discussed, debts burdening government across New Zealand – technical debt. Technical debt is the cost of generations of incremental investments in legacy technologies to tease additional functionality or life from them.

Earthquake Commission: Ivan Skinner Award Winner Inspired By Real-life Earthquake Experience

Witnessing the human cost of the Canterbury earthquakes inspired Ben Exton to become an earthquake engineer and find solutions to make New Zealand homes more resilient against future seismic events. Exton last week received the Ivan Skinner Award at the New Zealand Society of Earthquake Engineering (NZSEE) annual conference to recognise his innovative work as a practitioner and to support his qu

Reserve Bank: Consultation Opens On A Digital Currency For New Zealand

Te Pūtea Matua is continuing its exploration of a central bank digital currency. “We are calling this ’digital cash’. It would be a new type of money in addition to the banknotes and coins we have today, and the electronic money in your bank account,” Director of Money and Cash – Tari Moni Whai Take Ian Woolford says.

NIWA: Ship Anchors May Cause Extensive And Long-lasting Damage To The Seafloor, According To New Research

NIWA anchored their research vessel in Wellington Harbour and observed in real-time how its anchor changed the surrounding environment. Study leader NIWA geophysicist Dr Sally Watson says they saw broomstick-like scarring on the seabed.

New Zealand Customs Service: A Step Forward For Simpler Trade Between New Zealand And Singapore

The New Zealand Customs Service has signed an arrangement with Singapore that will help to make trade simpler for exporters. The Arrangement on Facilitating Safe and Efficient Trade sets out a framework for developing and strengthening practical cooperation on trade and the use of emerging technology.

Horizon Research: 68% Say Make Banks Offer Fraud Protection

68% (2,785,000 adults) believe the government should regulate to make sure banks offer fraud and cybercrime protection to customers. These are among findings of a new study, conducted in the public interest by Horizon Research, on bank fraud and cybercrime.

Join Scoop Pro

Submit News

Become a Member