New Zealand Inv Trust Share Discussion Threads

[roughjustice] 03/2/2007 10:17

Do you not think the fact that stocks outside the NZ will be taxed will mean demand may increase for NZ stocks?

[hazelton] 08/1/2006 21:26

I had wondered if there was a buying opportunity now , its been a bit weak but a pretty good long term performer.

[isa23] 04/1/2006 13:04

This has some good chatching up to do. A near 12% discount seems unjustified when other Asian funds are trading almost at par. I am specially impressed by annual growth in divi. It is a good alternative income vehicle IMO

[wal footrot] 29/8/2005 12:06

and, far more importantly, the blacks are now favourites to take the tri nations after a 'lucky' victory against the incessantly offside south africans.

[wal footrot] 29/8/2005 12:05

on the currency side of things, from ABN (NZ):

Strategy:
The NZD/AUD cross rates have strengthened after their initial softening a month back and we have moved back into the low 90cs. The long term prediction for the NZD is to settle around the 85c mark. This is a good time to review holdings to see if you have sufficient investments across the Tasman before the dollar falls back. Companies that look good are Woolworths, Australian Gas & Light, QBE Insurance, ConnectEast, and Australian Pipeline Trust. Call me if you would like to discuss this part of your holding strategy


Also reading today that fair chance of NZ rate cuts by early next year as the country feels the pinch of having the highest in the developed world (or somesuch). Tempered by fears of inflation:



do you hold individual shares from NZX/ASX, gateside?

[gateside] 29/8/2005 11:55

From their July newsletter

July saw further gains in the portfolio with the net asset value rising by around 3% in both Sterling and New Zealand dollar terms. A recovery in the value of the Australian dollar against the New Zealand dollar was a contributor to these gains. With the New Zealand dollar falling in value versus most major foreign currencies, a number of the companies that earn a high proportion of their profits from overseas were among the best performing shares during the month. These included the large holding in Fisher & Paykel Healthcare, a company whose spectacular success in the US market has previously been partially masked by the US dollar's weakness.

During the month we completed the sale of the holding in Turners Auctions, a company that has recently failed to live up to expectations, and whose outlook is clouded by a slowdown in demand in its marketplace and a period of transition in management. For the time being we have elected to hold some cash in the portfolio as we evaluate new opportunities in both the New Zealand and Australian equity markets.

[gateside] 28/8/2005 09:56

Well it looks like selling these in April was not so smart after all!

Have updated the header with their new holdings. See there have been a few changes amoungst their largest holdings. Also Australian shares now account from 25%, while back in April it was just 19%.

Might consider buying back, if there is any weakness in price.

[wal footrot] 18/4/2005 08:41

My NZ portfolio has taken a pounding over the last month.

This has held up better, guess i am in the wrong stocks.

[gateside] 18/4/2005 08:38

Glad I sold out at 300p... will watch for a new entry point over coming months.

[gateside] 17/3/2005 07:14

WELLINGTON (AFX) - Share prices closed at five-week lows on profit-taking
prompted by weaker overseas markets and a strong New Zealand dollar, dealers
said.
The benchmark NZSX-50 gross index fell 30.42 points or 0.97 pct to 3,124.96
on turnover of 147.2 mln nzd.
Hamilton Hindin Greene broker Grant Williamson said the decline was due to
weaker overseas markets and the strong New Zealand dollar.
"It's all starting to take effect on the market. It's (prompting) investors,
who've had a good (run), to take some profits," Williamson said.
Market leader Telecom lost 0.02 nzd to 6.28.
Turners and Growers fell 0.15 to 2.85 as it resumed trade today after
Guinness Peat Group (GPG) sold a 17.2 pct stake. GPG still holds about 61.3 pct
of all Turners and Growers shares.
Home and sporting goods retailer Briscoe Group fell 0.02 to 1.21 after
announcing a 21 pct decline in net profit for the year to December to 18.7 mln
nzd.
Contact Energy, one of the market's top three stocks, shed 0.15 to 6.75,
which was mostly due to profit-taking, dealers said.
Hallenstein Glasson was down 0.07 at 4.13 after it posted yesterday a 21 pct
rise in half year to January profit to 8.47 mln nzd.
Baycorp Advantage rose 0.12 to 3.25, Fisher and Paykel Appliances was down
0.12 at 3.08 and Fletcher Building fell 0.09 to 7.14.

[gateside] 14/3/2005 06:45

SYDNEY (AFX) - Share prices closed higher led by resources stocks, although
the overall gains were broad and included the banks, helping push the key market
indices close to the record highs reached early last week.
The S&P/ASX 200 closed up 29.7 points or 0.71 pct at 4,233.5, within reach
of the record close of 4,242.9 reached on March 8. The index traded to a high of
4,235.4 and a low of 4,195.3.
The broader All Ordinaries Index ended up 26.1 points at 4,218.6, just short
of an all-time high of 4,223.3, also struck on March 8.
Dealers said investors ignored signs of slowing earnings growth, including
cost pressures in the Australian economy and rising interest rates, backing
stocks because of solid returns in the form of dividends and capital management
programs.
They said the resources sector is being backed because of a growing view
that commodity price cycle's current upswing is likely to be prolonged,
underpinned by China's appetite for raw materials and an improving global
economy.
This view was supported by BHP Billiton's 9.2 bln aud bid for WMC Resources,
launched last week, which analysts suggested was a bet on the strength of
commodity prices being sustained for a prolonged period.

[gateside] 14/3/2005 06:45

WELLINGTON (AFX) - Share prices closed higher, driven by discount retailer
the Warehouse which met expectations with its interim net profit and offered
investors a glimmer of hope for its
Australian unit, dealers said.
The benchmark NZSX-50 index was up 6.27 points or 0.20 pct at 3,156.03 on
turnover worth 120.7 mln nzd.
Of the 154 stocks there were 47 rises and 63 falls.
Shares in The Warehouse rose 17 New Zealand cents to 4.11 nzd after the
company posted a December half profit of 53.88 mln nzd, at the higher end of
expectations.
The company said that while New Zealand earnings were down its Australian
operations had improved.
ABN Amro Craigs broker James Lock said investors were looking for any hint
of a turnaround in The Warehouse, especially from its Australian unit.
"The share price has been battered around for a while and now there's a
glimmer of hope for investors" from the Australian operation, Lock said.
Several stocks came under selling pressure from profit-taking, the higher
interest rate regime and the New Zealand dollar's appreciation.
"I think the market was having a good solid pause here and letting off some
steam," Lock said.
Among high profile stocks, Telecom fell one cent to 6.25, Contact Energy was
down 16 cents at 7.01 nzd, a level last seen in early February, and Carter Holt
Harvey was down one cent at 2.22.
Other shares on the move included Air New Zealand down three cents at 1.58
nzd, Fisher and Paykel Appliances up five cents to 3.10 nzd and Lion Nathan up
15 cents to 8.00 nzd.

[gateside] 11/3/2005 08:18

Good increase in the NAV this week from 327p to 335p

Share Price looks to be building a solid level of support at 300p :-)

[gateside] 18/2/2005 13:21

Continuation vote

We believe that the continuation vote held in the year 2000, and that coming up
in April of this year, have been useful in focusing the Board and the
Investment Manager on issues important to the shareholders of the Company, and
in controlling the discount at which the shares tend to trade from their net
asset value. To further advance shareholder democracy and control, and to give
shareholders assurance that in approving the continuation of the Company as a
United Kingdom investment trust, they will have more frequent opportunities to
consider the issue, we have proposed in Resolution 12 to shorten that regular
interval to two years, so that the next continuation vote will be held in the
year 2007, rather than in 2010. This shorter cycle recognises the advisability
of more frequent reviews resulting from the changing taxation and regulatory
regimes in the United Kingdom, and the far-reaching taxation changes being
considered by the government of New Zealand. We also believe that the shorter
cycle is reasonable given the liquidity of your Company's investment portfolio
compared with occasions in the past when it had significant holdings in the
shares of small companies with poor liquidity.

Shareholders overwhelmingly approved the continuation of the Company in 2000,
and the results in the succeeding years have fully justified that support.
There will be another continuation vote held at the Annual General Meeting on
13 April 2005, and your Directors unanimously recommend that you vote for
continuation. The recent performance is excellent, the outlook for the Company
remains attractive relative to other world markets, and The New Zealand
Investment Trust remains a unique vehicle for investment.

[gateside] 18/2/2005 13:20

Outlook

We were right in our optimism for the New Zealand share market last year. The
share markets in New Zealand and Australia were again stellar performers,
compared to the FTSE World Index which rose less than 1% in New Zealand dollar
terms. It is worth noting the reasons for anticipating the good results we've
achieved in the past year, because they still prevail:

• The high New Zealand and Australian dividend levels create real value;

• The New Zealand government superannuation (pension) fund is providing a
significant and steady support;

• The governments of New Zealand and Australia are maintaining budget
surpluses;

• Improvements in standards of regulation, corporate governance, and
management;

• Price/earnings ratios are for the most part reasonable, and well below those
of the United States and Japan;

• New Zealand and Australia are exposed to the growing economies of East and
South Asia.

The strength of the share markets in New Zealand and Australia continue to
challenge our Adviser and Manager, as they seek out prospective shares in which
to invest. Their excellent performance shows that they have risen to that
challenge, and we see no reason that they cannot continue to do so. That said,
our past performance has been a combination of astute investment decisions and
rising share markets and currencies, and we cannot reasonably expect the share
markets and currencies to be so supportive forever. We do believe, however,
that success in picking some of the best stocks in the strong markets of New
Zealand and Australia will continue to build further value for the benefit of
all shareholders.

[gateside] 18/2/2005 13:18

Treasury share programme

Despite our excellent performance, our shares have continued to trade at
discounts to net asset value, recently around 10%. Changes in the taxation and
regulatory regime in the United Kingdom in 2003 made it possible for investment
trusts to purchase their shares at a discount in the market, hold them in
treasury subject to limitations, and then to reissue those shares. Our
shareholders granted us that authority, and The New Zealand Investment Trust
was a pioneer in utilizing these new powers for the benefit of shareholders. We
have thus far purchased 105,780 treasury shares (103,342 at the balance sheet
date) acquired at an average price of NZ$6.21 (224p), which is 28% less than
the most recent net asset value of NZ$8.62 (329p). Your Board has established a
policy of not reissuing shares at a discount greater than the discount
prevailing when they were purchased for treasury, and following a recent visit
to portfolio companies in New Zealand, we have cancelled the shares held in
treasury. Purchasing shares at a discount to net asset value, whether the
shares are held in treasury or cancelled, increases the net asset value of the
remaining shares outstanding, and we will not hesitate to continue purchases if
we believe that they will be beneficial to shareholder value.

[gateside] 18/2/2005 13:18

Appreciation of the New Zealand dollar

Our comments last year on the appreciation of the New Zealand dollar remain
timely, as it has continued its remarkable increase from a cyclical low of US
39.3 cents to US 64.5 cents at the time of last year's annual report, and on up
to US 71.3 cents at the time this was written, an amazing appreciation of 81%.
The New Zealand dollar's performance against sterling has been more restrained,
but very impressive, increasing 40% from 27.0 to 37.9 pence. Relatively strong
commodity prices and higher interest rates in New Zealand have supported this
appreciation, but a number of export industries are struggling, a growing issue
for a country dependent upon trade for a substantial part of its economic
activity. The strength of the New Zealand dollar against the Australian dollar
is of particular concern, as Australia is New Zealand's largest trading
partner. The appreciation against the U.S. dollar is made more problematic by
the ties between New Zealand's Asian trading partners and the U.S. dollar.
China has tied its currency to the dollar, and many other East Asian countries
actively manage their currencies against the U.S. dollar to promote their
exports. New Zealand has thus seen its currency rise significantly against
nearly all its trading partners.

We have remained unhedged against sterling and the United States dollar, and
thus have realised the full benefit of the strong New Zealand dollar. With the
New Zealand dollar at the top of its historical range against both those
currencies, it is tempting to consider implementing a hedging program. However,
consistent with our policy, we will continue to restrict hedging activity to
possibly hedging the currency risk of the Australian denominated investments
back in to NZ dollars. Over and above that, our preferred method of 'hedging'
remains to invest in companies which could be expected to benefit from changes
in currency exchange rates.

[gateside] 18/2/2005 13:17

Investment performance

The New Zealand dollar continued to appreciate against both sterling and the
United States dollar during the year ended 31 October 2004, and the net asset
value in United States dollars increased by 34%, much better than the 24%
increase realised in sterling.

Our diluted net asset value increased 20% in New Zealand dollar terms, far
exceeding the 13% rise in the NZSX All Index, and the 9% increase in the
Australian All Ordinaries Index in New Zealand dollar terms. We are
particularly pleased that, despite the relatively poor performance of the
Australian share market in New Zealand dollar terms, we have realised superior
results from our investments there, and are optimistic that this will be
repeated in future years.

The increased dividend we are recommending represents 13.4 cents New Zealand at
the exchange rate in effect at the year end, a 21.8% increase from that paid
for last year.

Our performance over the four and one-half years since shareholders approved
the continuation of the Company, and with our new Investment Advisers, has
substantially exceeded the performances of the NZSX All Index and the
Australian All Ordinaries Index, which comprehensively cover the areas in which
we invest. Our long-term out-performance of the NZSX All Index over the life of
The New Zealand Investment Trust has further improved to 143%. Our net asset
value has increased from the net 95.1p available from our initial offering to
284.8p, and we have paid and proposed gross dividends of 70.4p, for a total
investment return of 274%.

[gateside] 18/2/2005 13:17

CHAIRMAN'S STATEMENT

The New Zealand Investment Trust enjoyed another year of strong performance.
Our net asset value rose 24%, during the year ended 31 October 2004, to a fully
diluted 284.8 pence per share. Our interest and dividend income increased 20%,
as New Zealand companies continue to pay out good proportions of their rising
earnings to shareholders. Our operating costs are rising less rapidly than
either our income or assets, benefiting to some extent from the switch to a
single Investment Adviser during the year, such that our expenses as a
percentage of average assets fell to 1.7% from 1.9% in the year before. This
percentage of expenses compares very favourably with other investment trusts
with assets below £50 million. Our total return per share was 59.9 pence per
share, a return of 26% on shareholder funds. Your directors are pleased to
recommend that our dividend be increased by 25%, to 5 pence per share.

[gateside] 18/2/2005 13:16

Final Results

[gateside] 18/2/2005 07:47

I see the NAV is up another 6p

The diluted net asset value per ordinary 25p share of the Company at 11
February 2005 was 329.43 pence sterling (NZ:862.33 cents).

The net asset value above is a measure of the capital attributable to each
share and does not include accumulated revenue for the period since 31 October
2003. For the year to 31 October 2004 the Company's earnings per share was
5.89 pence (NZ:15.42 cents), and for the two months to 31 December 2004
accumulated revenue net of expenses was 0.97 pence per share (NZ:2.54 cents).
The Company's dividend for the year to 31 October 2004 will be announced in
February as part of the Company's results.

The exchange rate at which this was calculated was £=NZ$2.6177

[gateside] 02/2/2005 16:10

SKYSHIP... Cheers.

Hope you find the variety of charts for the different markets in the header useful.

I bought in at 225p... After consolidating in December, this is moving up nicely again. Looks like it will not be long before 300p is broken.

[skyship] 31/1/2005 08:34

GATESIDE: Posted only to let you know that you are not alone in holding this stock. I am a fairly recent buyer (c.3m ago @ 264p); and my regret is that I hold an under-allocation v. my usual holdings. I keep delaying a doubling purchase - only to see them move ahead of me!