SmartFONZ Dividend yield

Recent index performance highlights the potential of this new fund with Gross Dividend Yield 6.4% + Capital growth 18.4% in the 12 months to September 2004^*.

One of the most distinctive features of the New Zealand sharemarket is its high dividend yield. New Zealand companies have historically paid out a large proportion of earnings as dividends and together they have a dividend yield of over 6%, which is among the highest in the world.

Source: World Federation of Exchanges

Dividends provide investors with a constant stream of income. The benefit of New Zealand company dividends to New Zealand investors is that they usually attach imputation credits which SmartFONZ is able to use to pass on to investors.

Compared to the other indices which track sections of the New Zealand market (including the headline index, the NZX 50 Index), the NZX 50 Portfolio Index has recorded an extremely attractive dividend yield of 5.9%pa over the last three years.

Dividend Reinvestments To take advantage of the high dividend yield and to further grow your SmartFONZ investment you can choose to automatically reinvest your twice-yearly dividend distributions for more SmartFONZ units.

^*Past performance is no guarantee of future returns