US funds now have over 10pc of Tourism Holdings

A loosely linked group of six United States funds now has more than 10 per cent of Tourism Holdings.

Drake Associates filed a substantial security holder notice today showing the funds now had 10.64 per cent of THL, up from 9.3 per cent.

The funds began investing in August 2005 and their combined holding makes them THL's largest shareholder.

Spokesman Peter Metz said the funds liked THL's dividend yield. He would not comment on whether the company intended to keep accumulating shares.

The funds include Drake Associates, Sterling Grace Capital Management, Sterling Grace International, Cabin Interiors and Aviation Services.

Mr Metz said the funds had other investments in New Zealand, but the THL one was the most substantial.

THL shares were down 1c in late trading at $1.83. They have traded between $1.45 and $2.05 in the last year.

Millionaire businessman Sir Selwyn Cushing holds a 9.5 per cent stake in THL.

- NZPA