Mozy trading set to start next week

12.00pm

A new exchange-traded fund to enable New Zealand investors to track mid-sized Australian stocks is set to start trading next Monday.

The new fund, dubbed the Mozy, will be run by NZX subsidiary NZX Funds Management Limited. NZXFM said today it had raised $33.2 million in the Mozy initial public offering (IPO) which closed last Friday.

In August NZXFM said it was aiming for funds under management of $40 million, plus over subscriptions. But Geoff Brown, NZX Markets Development Manager said today in a statement he was pleased with the response from both the general public and brokers.

"With the Australia New Zealand exchange rate at its highest levels since 1995, it's an ideal time to take advantage of the opportunities for New Zealanders to invest in the Australian market and we designed the Mozy as an easy and cost effective way to do this," he said.

Mozy will track the S&P/ASX MidCap 50 Index in Australia, allowing New Zealanders to invest in medium-sized Australian companies through a Smartshares fund listed on the New Zealand stock exchange.

NZXFM said in a statement to the stock exchange today all funds have now been invested in the underlying securities in the index. The issue price has been set at $3.6781 per unit.

The Mozy joins the NZSX 10 Fund (Tenz) and the NZSX MidCap Index Fund (Midz) in the recently-launched Smartshares family of exchange traded funds.

NZXFM also plans to launch a fund called Fonz before the end of this year, which will track the NZSX-50 Portfolio Index.

- NZPA