NZL New Zealand It

    THE NEW ZEALAND INVESTMENT TRUST PLC

Proposed change to investment policy

The following statement will appear in the Company's annual report for the year
ended 31 October 2005, a copy of which will shortly be posted to shareholders.

"In 1997 we submitted to shareholders a resolution to permit the Company to
invest in Australian securities, as well as in New Zealand securities. We did
that in response to the continuing integration of businesses in the two
countries under the Closer Economic Relations regime, as a result of which a
number of businesses in New Zealand (such as banking) came to be dominated by
Australian companies, and which found leading New Zealand companies expanding
into Australia and deriving major amounts of revenue there. Our advisers
reported that when they would study a business, they might find that an
Australian company was the leader, and would be the preferable company in which
to invest.

In establishing a brief to invest in Australia, we limited that to 35% of total
assets, as we continued to believe that investing in New Zealand would produce
excellent returns, and we would remain unique among UK and US closed end
investment companies in our focus on New Zealand. This has proven correct.

However, for the first time, we are now at the point where fully 35% of our
total assets are in Australian securities or cash. Our advisers have been
finding better value among Australian securities in the past two years, and our
Australian investments have added good value to our shareholders. We would
therefore recommend to shareholders that we make a modest increase in the
Australian portfolio, to 40% of shareholders' funds, and allow for even greater
amounts from borrowed funds if that is approved by your Board. You will note
that we have made very little use of borrowing to date, and we have no present
plans to take down funds from our existing line of credit, but we believe that
this could be advantageous from time to time.

In applying the existing 35% policy, we have not considered it necessary to
sell Australian securities if they exceed 35% as a result of appreciation.
Rather, we could continue to hold the existing Australian securities, or sell
them and re-invest the proceeds in other Australian securities, but we would
not divert any further funds from the New Zealand portfolio. We would continue
to apply this interpretation to the limit of 40% of shareholder funds if this
change is approved. Similarly, if borrowed funds are used to purchase
Australian securities in excess of 40% of shareholders' funds, any proceeds
from the sale of those securities would be applied to the repayment of the
loan, though it could be later re-borrowed to purchase Australian securities.

We are therefore proposing for your approval the following resolution:

THAT, the investment policy of the Company be amended so that it may invest up
to 40% of its shareholders' funds in Australian securities; and if the Board
approves borrowings by the Company, those borrowings may be used to purchase
additional Australian securities.

Our restated investment objective will read as follows:

"The objective of the Company is to provide shareholders with the maximum
possible total return primarily from investment in quoted securities in New
Zealand and, to a limited extent, Australia."

The Company's Annual General Meeting will be held at 12 noon on Wednesday 26
April 2006.

Donald M. Campbell

Chairman

28 February 2006



END

Grafico Azioni New Zealand Inv Trust (LSE:NZL)
Storico
Da Mag 2024 a Giu 2024

Grafico Azioni New Zealand Inv Trust (LSE:NZL)
Storico
Da Giu 2023 a Giu 2024