Public Trust gets Wired
The Public Trust shakes off its old fashioned image with the launch of a "new economy" fund.
Wednesday, May 3rd 2000, 12:00AM
The Government-owned PTO has today launched a technology-type fund that tracks the Wired index in the United States.
The Wired index was created by the magazine of the same name in the United States to track what it calls the "new economy" companies.
The 40 companies in the index represent a wide range of businesses from from data mining to cars to agribusiness to networked media.
"What they all have in common is that they are using technology, networks and information to reshape their businesses and ultimately the global economy," Public Trustee David Hutton says.
Fund managers Investec Guinness Flight has created a number of funds to track the Wired Index. One is US-based and the other is a United Kingdom-domiciled unit trust.
The PTO is promoting the UK version of the fund in New Zealand initially through its own network.
Investec Asia managing director Royce Brennan says the Wired fund is essentially a themed global equity fund.
He says investors are getting bored with the standard regional approach to international shares. Rather they are now looking for funds that follow themes they can identify.
While the launch of the fund in New Zealand is a major change to the PTO's traditional business, it is also a first for the funds management industry.
It is believed that this is the first UK fund to be promoted in New Zealand that takes advantage of an exemption notice issued by the Securities Commission earlier this year.
Under that exemption notice it is possible to promote UK-based collective investment vehicles in New Zealand using UK documentation.
The minimum investment is $5000 and there is a front-end entry fee of 5 per cent. The fund's management fee is 1.25 per cent and it has a management expense ratio of 1.35 per cent.
The Wired index has, since inception on June 1, 1998, produced a return of 193.7 per cent.
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