April 13, 2006
Tower Launches 2 New Innovative Funds
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.
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