Skip Site navigation

Skip Section navigation

 

Offshore Investment

Extend your portfolio into Australia in one trade with SmartMOZY
Many advisors recommend diversification into at least one other offshore sharemarket for investors who only invest in New Zealand shares. SmartMOZY is an ideal vehicle to make your first foray into the Australian sharemarket.

If you have already begun an Australian portfolio with some large "blue chip" Australian stocks, analysis (see below) suggests that adding medium sized Australian companies to your existing portfolio can boost returns and reduce risk.

The following chart examines the effect of adding SmartMOZY to an Australian portfolio of top 20 Australian companies. To model the effect, we have used the performance of the S&P/ASX 20 Index to represent the performance of the larger companies in the portfolio. The chart shows the risk and return implications of introducing SmartMOZY to the portfolio (all data is based on historical returns from December 1992 to April 2004. Risk (which is determined by the standard deviation of index values) is shown on the horizontal axis and return on the vertical axis).

S&P/ASX Mid Cap 50 Index vs ASX Top 20 Australian leaders index
Source: ABN AMRO Craigs

The chart shows how investing in SmartMOZY Smartshares can both increase your return and, providing the allocation doesn't get too high, reduce your risk. The resulting portfolio has a very balanced Australian industry diversification, giving investors a good stake in a range of companies with no single industry sector over-represented.

Search

Quicklinks

Related Downloads

Back to top

Privacy Statement | Conditions of Access and Use | Contact Us | Sitemap
Smartshares Limited is a wholly owned subsidiary of New Zealand Exchange Limited (NZX) and is the manager of SmartFONZ, SmartTENZ, SmartMIDZ, SmartMOZY and SmartOZZY Funds. NZX does not guarantee the performance of SmartFONZ, SmartTENZ, SmartMIDZ, SmartMOZY, and SmartOZZY Funds. Units in SmartFONZ, SmartTENZ, SmartMIDZ, SmartMOZY, and SmartOZZY Funds have been accepted for quotation by NZX and will be quoted upon completion of allotment procedures. However the Special Division which regulates NZX takes no responsibility for this offer. Copies of relevant Investment Statements can be obtained by contacting a Primary Market Participant or Smartshares Ltd directly at www.smartshares.nzx.com or by phoning 0800 80 87 80. All currency in New Zealand dollars unless otherwise stated.