Sharechat Logo

Major US investor packs up toys and goes home

Friday 18th February 2000

Text too small?
By Michele Simpson

Giant US investment group Franklin Resources has taken an axe to its New Zealand shareholdings, pulling out millions of dollars in favour of more lucrative overseas markets.

In the past few weeks it has cut its stakes in Brierley Investments and Fletcher Challenge and cashed up $10 million of its shareholding in Air New Zealand.

The move echoes a report from the country's biggest broking firm, JB Were & Son, showing levels of offshore ownership in the Stock Exchange were down to 54.5%, a fall of about 5% since December 1997.

"Despite headline ownership remaining stable, there was a clear shift out of New Zealand by portfolio investors," the report said.

Rival broker Merrill Lynch said some large offshore fund managers were highly critical of this market. "One of the issues is that investors are looking for growth rather than value," Merrill Lynch strategist Mark Benseman said.

Those growth stocks are telecommunications and media, and overseas investors are buying them in other markets.

Franklin Resources would not comment on why it had taken steps to cut back on its shareholding in New Zealand companies, although it is understood the group is looking at other markets such as Japan.

The chunk of the sharemarket held by offshore portfolio investors or foreign fund managers shrank from 30.3% in December 1998 to 27.5% in December last year.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZ dollar rises as US-China trade, Brexit tensions ease
SkyCity shares hit 7-week low as fire encapsulates convention centre
Wrightson showcases Fruitfed Supplies as horticulture stands out
Fonterra rivals fear dairy giant will get leg up from law overhaul
Wellington Drive remains in the black as it raises operating forecast
OMV plans further maintenance at Pohokura
Sky continues sports drive with extension to netball rights
Apple's asset-shuffling puts $270m value on PowerbyProxi
Fonterra lifts payout forecast on improving global dairy prices
22nd October 2019 Morning Report

IRG See IRG research reports