Someone posted a question about how to invest in New Zealand.
I thought there was more available than actually exists. There is only one stock on the NYSE that is a New Zealand company (according to ADR.com) and three others that look like they trade here on the pink sheets. Also there is only one equity CEF that has NZ exposure (according to ETFconnect). My clients and I own the one NYSE name, Telecom New Zealand (NZT). I have to disclose I am implementing a new client account and so may be violating my two week rule. Hopefully you will realize that I am not violating the spirit of the rule by buying the stock for one new client.
The one CEF is Aberdeen Australia Equity (IAF) which has a 6% weight in NZT. I am waiting on a call back from the fund to know the total weight of New Zealand for the fund. If they get back to me I will edit this post.
One thing the question did not ask was about ETFs. NZT has a 0.42% weight in the iShares Global Telecom (IXP). Clearly this won't capture the effect but it will save you the time of looking for yourself.
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1 comments:
1. Julian Robertson appears to have gone the golf course & expensive hotel route and it seems to be working out well...
http://www.kauricliffs.com/
2. New Zealand has a stock exchange with a checkered history (does the name Ron Brierley ring a bell?); it blew up big time in 1987; given the size of the economy (3.5 million-odd people, 50-60 million sheep, only a few of which have 401(k)s), the vast majority of the listings would barely qualify as micro-caps by US standards. It is therefore something of a casino, although somewhat less so than in pre-1987 days...
3. The NZ Stock Exchange (NZX) lists four ETFs - TNZ (the NZSX 10 'blue chips') and MDZ (NZ Mid-Cap) - along with Australian and Global market products; the Kiwi ETFs have market caps of around $US 50 and $US 12 million respectively although the Global one is around $US 250 million i.e. it gives the natives an easy way to punt on the rest of the world.
4. Investing in New Zealand: I believe some Govt debt issues are available here (nice yields, not to mention a nice currency turn over the last couple of years (although the $NZ has been known to go down too)) and the property market, while in bubble mode, is also popular for those looking for distant bolt holes. There again, you live in Prescott so you've already got one.
Hope you find these comments helpful from a Kiwi about to make his first trip 'home' in >10 years
Greg Newton
greg.newton-at-gregnewton.net
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