Local Shares Deliver 18% Return Over The Quarter
WiNZ To Expand After Ruling Renewed
AMP Henderson’s newest investment, the Strategic Equity Growth Fund, enjoyed a pre-tax return of 18.1 % over the last
quarter reflecting some strong growth in local markets.
Launched in February of this year the Strategic Equity Growth Fund pursues an absolute return strategy focusing on
growing companies with no reference to market weightings. Since its inception this fund has provided a return of 22%,
nearly double the NZSE40 figure.
Other figures released today by AMP Henderson suggest the worst is over for investment markets with solid pre-tax
returns of 2%, 3.5 % and 4% for the low risk, medium risk and high risk funds respectively for the quarter.
“Following the turmoil of the previous six months, equity markets enjoyed solid returns during the June Quarter,” said
AMP Henderson’s head of strategy, Paul Dyer.
After the heavy sell down earlier this year, the last quarter saw strong gains in the sectors that were most oversold –
notably cyclical and technology stocks.
“The turnaround in many of the large technology stocks benefited the AMP World Index Fund (WiNZ) in particular which
achieved a very pleasing return of 3.9% after-tax,” Mr Dyer said.
“It was also pleasing to receive a new IRD tax ruling for the WiNZ Fund ensuring that the Fund will continue to pay no
tax on the sale of shares. The IRD ruling has also allowed for AMP Henderson to increase global shares in WiNZ from 260
to over 750 stocks.”
“This will provide further diversification for investors with little increase in costs. The change also ensures the Fund
tracks the MSCI more closely,” said Paul Dyer.
“The Strategic Equity Growth Fund has enjoyed a potent debut. Our substantial holdings in Fisher and Paykel and Rubicon
contributed to the good returns, with both stocks up by over 50% during the quarter. Also, the fund wasn’t adversely
impacted by the fall in the Telecommunication sector during the quarter,” said Craig Brown, Senior Equity Portfolio
Manager/Analyst.
AMP Henderson Global Investors is New Zealand’s largest investment management company, managing over $10 billion. WiNZ
is New Zealand’s largest indexed fund.
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