How to find the constituent weightings of NZX indices ?

[KeesKiwi]

Hi,

On www.nzx.com (http://www.nzx.com) I can see the constituents of various indices like NZX 50, NZX 10 etc but where are the weightings ? The best I could find is http://www.smartshares.nzx.com/resources/fact_sheets/tenz_fact_October.pdf for NZX 10

[kizame]

Hi,

On www.nzx.com (http://www.nzx.com) I can see the constituents of various indices like NZX 50, NZX 10 etc but where are the weightings ? The best I could find is http://www.smartshares.nzx.com/resources/fact_sheets/tenz_fact_October.pdf for NZX 10

I'm sorry I don't understand,why would they have a weighting,from my understanding,there are 50 co's represented in the nzx50,and it is whether their share prices rise or fall that lifts or lowers the index overall,I don't think they are weighted,that is for the likes of a unit trust or managed fund. Correct me if I am wrong tho.

[winner69]

I think it is one of those things you need to pay to get. The weightings are reviewed quarterly (or monthly) and there is a 57 page manual how all the calcs are done

The last list I saw had FBU at about 12% of the NZX50 and 20% of the NZX10 so whatever happens to FBU has a lot of bearing on the Index eh

Sorry Kizame - not as simple as everybody having the same weight .... big boys have a bigger say

The cynics would say it's all part of the big plan to keep the index going up ..... like the losers already fall off and forgotten about so that helps the cause eh

[KeesKiwi]

Hi Sparky, yes I am considering building a portfolio. Could post a link to the broker published NZX50 with weightings ? (I have googled this one in vain)

[Hoop]

Hi,

On www.nzx.com (http://www.nzx.com) I can see the constituents of various indices like NZX 50, NZX 10 etc but where are the weightings ? The best I could find is http://www.smartshares.nzx.com/resources/fact_sheets/tenz_fact_October.pdf for NZX 10

KeesKiwi I assume you have been here NZ Equity Indices Methodology
(https://www.nzx.com/files/static/Equity_Indices_Methodology_June_2012.pdf)...57 pages of hard going so I recommend before anyone tackles this document they should settle in by getting a bottle (or two) of their favourite beverage first. Page 15 and around page 19 are revelant for the NZX50 index.

The NZX50 index using the Free Float Methodology does not make life easy for anyone as all weightings are variables. The NZX announces these and I suspect they are buried within all the other company announcements and one has to trawl through all the announcements to find it.
Unfortunately I have discovered that one needs to be near the genius level (a rocket scientist would suffice) to find revelant data on the NZX website as it seems to have been built for people with very high IQs in mind ..so...personally I often have problems finding and understanding stuff I want from this site. One would think that typing in NZX50 would bring up the company announcements and details but sadly no...this must be considered far too easy and not mentally challenging enough.

KeesKiwi I assume the reason you want the weightings is to model your own investments tied closely to the NZX50 index ...If that is so then the NZX 50 Portfolio Index Fund (NS) {smartshares} which is announced every market day with the latest asset value price will help...(Sparky touched on this in his post above) ....the code is FNZ (unfortunately its a mystery to me how they managed to get FNZ from NZX50 Portfolio Index Fund :( :confused: )...anyway enough griping from me...This fund updates their weightings (clickable attachments) and they can be found at the bottom of their FNZ announcements (https://www.nzx.com/companies/FNZ/announcements/231691).

Hope this helps

Best of luck finding the code for NZX50 index.

[CJ]

Hoop

Fifty of New Zealand = FNZ
Follows pattern of earlier fund Ten of NZ = Tenz or TNZ.

From memory

[KeesKiwi]

I agree, it should be possible to calculate weightings the from the Equity Indices Methodology document but I assumed someone has already done the leg work and regularly published the results.

Hoop, thanks for link to the smartFONZ Basket Composition. smartFONZ is actually tracks NZX 50 Portfolio Index, not the NZX 50 index.

Originally I planned to buy smartFONZ but baulked when I saw their management fee was 0.75% per annum. I think smartFONZ are a good solution for portfolio worth less $20K or someone is who plans to keep them less than 5 years. Otherwise, I calculate it would be cheaper to pay the share trading commissions are build your own portfolio but admittedly more of a hassle. Anybody disagree ?

[Minerbarejet]

"Hoop, thanks for link to the smartFONZ Basket Composition. smartFONZ is actually tracks NZX 50 Portfolio Index, not the NZX 50 index." Glad you initiated this thread Keeskiwi.
Having been a FNZ owner for some years on and off could someone please explain the difference.
Would this difference account for FNZ being some 40 odd cents lower than it was when the stock market NZX 50 was at its previous high in 2007 or does somebody need a kick in the ear. Starting to smell a bit dodgy. Have bailed out.

[Hoop]

Hoop

Fifty of New Zealand = FNZ
Follows pattern of earlier fund Ten of NZ = Tenz or TNZ.

From memory

ahhh http://www.cool-smileys.com/images/58.gif (http://www.cool-smileys.com/smiley-with-a-light-bulb-above-his-head)....I see the connection now...thxs CJ


.....Hoop, thanks for link to the smartFONZ Basket Composition. smartFONZ is actually tracks NZX 50 Portfolio Index, not the NZX 50 index........


KeesKiwi I assume you have been here NZ Equity Indices Methodology
(https://www.nzx.com/files/static/Equity_Indices_Methodology_June_2012.pdf)...57 pages of hard going so I recommend before anyone tackles this document they should settle in by getting a bottle (or two) of their favourite beverage first. Page 15 and around page 19 are relevant for the NZX50 index.......

Yeah I know..sorry..I didn't make it very clear in my above post...page 15 is relevant to the NZX50 Index Methodology but page 19 should have been worded as relevant to the NZX50 portfolio lndex Methodology.
.
.
Majorbarejet is this your answer?
Page 19 refers to the NZX50 portfolio methodology...

'' .....The NZX 50 Portfolio Index is a replica of the NZX 50 Index, except with a cap on the weight of large securities of 5.0% each.
Once a security has been capped, its actual Index Weight is allowed to fluctuate between 2.5% and 7.0%......"

[Minerbarejet]

Many thanks - I suspected it was something like that but I needed an expert to set me right. I'm not buying back in though - not until the inevitable major correction. Cheers and Happy New Year - and hope we are not all lemmings going over the Cliff.

[Silverlight]

I agree, it should be possible to calculate weightings the from the Equity Indices Methodology document but I assumed someone has already done the leg work and regularly published the results.

Most brokers publish the data for clients, ask your broker for the info.

Alternatively if you have and use excel, build a spreadsheet to pull the market cap data for the constituents from yahoo or msn money, and you will get pretty close. You just need to eliminate all the strategic stakes (e.g. Origin Energy in Contact).

[modandm]

I agree, it should be possible to calculate weightings the from the Equity Indices Methodology document but I assumed someone has already done the leg work and regularly published the results.

Hoop, thanks for link to the smartFONZ Basket Composition. smartFONZ is actually tracks NZX 50 Portfolio Index, not the NZX 50 index.

Originally I planned to buy smartFONZ but baulked when I saw their management fee was 0.75% per annum. I think smartFONZ are a good solution for portfolio worth less $20K or someone is who plans to keep them less than 5 years. Otherwise, I calculate it would be cheaper to pay the share trading commissions are build your own portfolio but admittedly more of a hassle. Anybody disagree ?

seems mad to go and buy all 50 just to replicate the index. If you buy 10 of the top 20 and other 10 of the next 30 you will have a tracking error pretty close to 0% (ie performance will be close to the same as the market for not a lot of work.

[winner69]

seems mad to go and buy all 50 just to replicate the index. If you buy 10 of the top 20 and other 10 of the next 30 you will have a tracking error pretty close to 0% (ie performance will be close to the same as the market for not a lot of work.

esp as the index seems to get changed and/or reweight quite often