Absolute Capital has launched three of its retail funds into the New Zealand market with plans to launch a wholesale product in February next year.
The three funds are the groups Yield Strategies Funds, the Absolute Return Fund and the Equity Long/Short Strategies Fund, all of which were listed on the Australian Stock Exchange in September.
The Yield Strategies Fund is the first of its kinds available to retail clients in New Zealand and Absolute Capital head of distribution Josh Goben says it taps into a strong demand for yield products in that market.
“New Zealand investors have a leaning towards yield and income style products so we expect the products to be as well received there as they were in Australia,” Goben says.
The group’s managing director Deon Joubert says the products will fill a gap in the New Zealand market as it provides greater diversification than traditional income products boasting 40 investments across 10 different asset classes
Since the fund kicked off in June 2001 its wholesale version has returned 14.6 per cent per annum before fees with volatility of less than two per cent.
To allow New Zealand investors access to the funds Absolute Capital have created unlisted Class B units specifically aimed at them which account for New Zealand tax laws and allows distributions to be reinvested as bonus issues of units, with these not being taxed in New Zealand as dividend income.
However New Zealand investors can still access the listed class A units as well as the class B units, for a minimum investment of $2,000, with the product being distributed through financial planning groups.
Absolute Capital currently has more than $230 million in funds under management across 10 investment products for retail and wholesale clients.
