Unique Fund Shows Way for NZ Investors

20 April, 2009
For Immediate Release

Unique Fund Shows Way for NZ Investors

An innovative new fund aimed at showing Kiwi investors the way back into the investment market is being launched today.
Pathfinder Asset Management Limited is launching a home grown New Zealand fund based on commodities and cash.

Historically it has been difficult for New Zealand investors to easily access global commodities but the new Pathfinder Commodity Plus Fund changes that.

Pathfinder principals Paul Brownsey and John Berry believe the timing is right to launch such a fund as commodity investing provides a sound base for any investment portfolio and commodities also tend to lead the markets when they recover.

“Commodity investment brings many positives to a portfolio” says Brownsey. “When compared to more traditional investments like equities and bonds, commodity prices tend to move independently and provide better returns. Our Commodity Plus Fund also features a mechanism that moves funds from commodities to cash when the market is turning downwards and this helps to protect returns when commodity prices fall.

“As commodities tend to lead the market when economic indicators turn our Pathfinder fund is structured to maximise the upswings,” says Brownsey. “The fund is benchmarked to a proven international index which means we give investors the benefits of a more active approach to fund management while using the fee structures usually associated with more passive investing.

“Our fund and fees are focused on being transparent to investors and providing the assurance of strong governance” says Berry. “Pathfinder is committed to high standards when managing money for NZ investors”.

The focus on transparency and strong governance has seen highly respected professional Director Sandy Maier and well known fund manager Catherine Savage, join the Pathfinder Board as independent directors. A significant investor in Pathfinder is also the principal shareholder behind fast growing boutique New Zealand fund manager Mint Asset Management.

“Sandy and Catherine bring strong investment experience and unquestioned integrity while the link with Mint brings an established distribution network and considerable experience both within New Zealand and internationally.” says Berry.

The benchmark used by the Commodity Plus Fund is calculated and published by Deutsche Bank. The success of the investment strategy is shown by return performance in 2008. Key global commodity indices fell 35% to 45% while the index used by Pathfinder was close to flat.

“As a ‘smart index’ the product is designed to outperform traditional market benchmarks over both medium and long term periods” says Brownsey. “The highly volatile markets of 2008 are the best stress test our approach will probably ever see.”

The Pathfinder Commodity Plus Fund is now open for investment and will accept investments and redemptions on a monthly basis.

ENDS

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