BT Funds Management TIME fund
It's time for Telecommunications, Information Technology and Media stocks.
Tuesday, May 23rd 2000, 12:00AM
Investment objective
The fund invests primarily in a carefully selected portfolio of international shares, predominantly in telecommunications, information technology and media enterprises. The fund aims to provide total returns higher than the MSCI - BT TIME Index over the long term. This fund may be suited to you if you want to significantly grow the value of your investment over the long term and accept that returns over the short term may fluctuate and even be negative.
The BT TIME philosophy
The BT TIME Fund actively invests in three global "TIME" sectors - telecommunications, information technology and media enterprises. BT believes these industries are likely to benefit from advances in technology and the increased acceptance and use of technology among corporates, governments and domestic households. These industries represent a significant and growing proportion of global markets and now comprise around one third of the MSCI World Index.
BT has a team of 15 analysts dedicated to researching TIME stocks. By focusing their attention on a specific industry globally the analysts are better able to measure a company's competitiveness relative to its global peers.
Investment guidelines
| Income/growth mix | Growth |
| Risk/return profile | High |
| Recommended investment timeframe | 5 years or more |
Benchmark
The performance aim of the fund is to provide a total return (before fees and tax) that exceeds the return from the MSCI-BT TIME Index over 5 years or more. The MSCI - BT TIME Index is a subset of the MSCI World Index in $A currently consisting of 12 specific MSCI TIME industries:
communications equipment; computers & peripherals; diversified telecommunication services; electronic equipment & instruments; internet & catalogue retail; internet software & services; IT consulting & services; media; office electronics; semiconductor equipment & products; software; wireless telecommunication services
Special features
Regular Savings Plan
Allows you to start investing with as little as NZ$1,000 provided that you then invest a minimum amount of A$100 each month.
Flexi Income Plan
You can choose to receive a fixed amount each month or quarter from your investments to provide a dependable and regular income.
Reinvestment option
You may choose to reinvest your income distributions into your fund to maximise the compounding effect of your returns and grow your investment. There is no entry fee charged on reinvested income distributions.
Annual investment return for similar investment#, 1, 2
| to 1 April 00 | Total return(%) |
| 1 year | 111.1 |
| # The BT TIME Fund has the same investment objective and the investment philosophy as the TIME component of the BT International Fund, a diversified international share fund. As at the date of this publication the BT TIME Fund had minimal assets and liabilities. Accordingly, there is no meaningful performance data for this fund. For this reason, performance and asset exposure details for the TIME component of the BT International Fund have been included for indicative purposes only. | |
The fund's investments - industries#,1
| Communication equipment | 22.3% | |
| Computers & peripherals | 5.6% | |
| Diversified telecommunication services | 13.2% | |
| Electronic equipment & instruments | 1.1% | |
| Internet and catalogue retail | 0.9% | |
| Internet software & services | 2.6% | |
| IT consulting & services | 2.7% | |
| Media | 9.2% | |
| Semi conductor equipment & products | 6.2% | |
| Software | 6.9% | |
| Wireless telecommunication services | 11.6% | |
| Cash | 11.9% | |
| Other | 5.8% | |
| Total | 100.0% |
Portfolio holdings1,3
| Top 10 TIME shares | Industry | |
| Cisco Systems Inc | Communications equipment | |
| Microsoft Corp | Software | |
| Nokia | Communications equipment | |
| Vodafone Airtouch | Wireless telecomm services | |
| Nortel Networks Corp | Communications equipment | |
| Nippon Telegraph & Telephone | Diversified telecomm services | |
| JDS Uniphase Corp | Communications equipment | |
| Ericsson | Communications equipment | |
| Dell Computer Corp | Computers & peripherals | |
| Samsung Electronic | Other |
Features at a glance
| Inception date | March 2000 |
| Size of fund | New |
| Initial investment (minimum) | NZ$5,000* |
| Additional investment (minimum) | NZ$1,000* |
| Application fee | 3% |
| Exit fee | 0% |
| Annual management fee | 1.5% |
| Distribution dates | usually end of March, June, September & December |
| * lower minimums apply for the BT Regular Savings Plan | |
BT Investment Selection
The BT TIME Fund complements BT's established suite of regional funds which was launched more than 10 years ago through the BT Investment Selection, including diversified and regional share funds. Existing investors in any fund in the BT Investment Selection (which offers the BT TIME Fund) are offered full switching facilities into any of the funds offered within the BT Investment Selection.
Income distributions
Each year, any income distributions comprising your share of any income and realised gains earned by your investment over a financial year will be paid to you. Income is generated within the fund from interest and dividend payments earned on the shares in which it invests. Capital gains are realised when investments within the fund have performed well and are sold to make way for new opportunities. Some gains may have accrued before you became an investor in the fund.
Distributions will normally be paid quarterly. These payments may be automatically reinvested, paid to your nominated New Zealand or Australian bank account or your BT Cash Management Trust. Please note that the first distribution for the BT TIME Fund is anticipated to be paid after 30 June 2000.
Regular communications
As a BT investor, you will receive:
- a statement confirming your initial investment and each subsequent transaction. These will normally be sent within 10 days
- a consolidated quarterly statement - showing all transactions, distributions, your payment details and investment return information for that quarter
- an annual statement of income for tax purposes at the end of the financial year and a guide to assist the preparation of your tax return.
More information
To obtain more information or a copy of the BT Investment Selection investment statement, please call BT Client Services on 0800 800 661 or talk to your financial adviser.
1 No representation is made that the BT TIME Fund will replicate or approximate those details. At 31 March 2000, the TIME component of the BT International Fund was 50.9% and for the 12 months prior to 31 March 2000 has ranged from a high of 50.9% as at 31 March 2000 to a low of 26.0% as at 31 March 1999. It is not possible to calculate a 3 or 5 year return for the TIME component of the BT International Fund because of limitations in retrieval of exposure data. As yet, it is also not possible to calculate historical returns for the fund's benchmark. The fund's investments (regional and industries) shown represent the holdings of the TIME interfunding vehicle through which the BT TIME Fund obtains its exposure. Exposure of the BT TIME Fund may vary from the exposure shown due to the timing of cash flows. In preparing the asset exposure of the fund, BT has taken into account both direct and indirect investments and the effects of futures and options contracts. Market exposure of the fund may change significantly on a daily basis.
2 Performance shown represents the combined income and capital return of the TIME component of the BT International Fund. It assumes that all earnings are reinvested, management fees are included, however expenses of the fund are not. It does not allow for the initial investment fee or the effects of income tax or inflation. Future performance is not guaranteed, and you could recieve back less than you invested. Returns are historical and past returns should not be used to predict future returns. The returns quoted are calculated in Australian dollars and therefore the New Zealand dollar returns to NZ investors will be affected by fluctuations in the AUD/NZD exchange rate.
3 This is general securities advice only and is not intended to constitute a securities recommendation. This advice does not take into account the investment objectives, financial situation and particular needs of an investor. Before making an investment decision we suggest you take these factoprs into consideration and recommend you consult a financial adviser. Initial applications for an investment in the BT TIME Fund may only be made on an application form attached to a current BT Investment Selection investment statement, copies of which are available from any BT office.
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