16 Nov 2011

Tower Investments moves hundreds of millions to NZ shares

7:41 am on 16 November 2011

Tower Investments is pulling hundreds of millions of dollars out of overseas markets and investing the money in New Zealand's stockmarket.

The company will double the amount it has invested in the NZX by the end of the year.

Chief executive Sam Stubbs says Tower will invest an extra $160 million to $200 million in the stockmarket because the time is right.

"Relatively, the New Zealand stockmarket is now looking a better long term prospect than it was, versus the international market," Mr Stubbs says.

"However there are still some very, very good bargains offshore, so we're not bringing it all onshore, but we are making a very strong statement about how attractive we feel the local market will be over the long term by moving this money."

Mr Stubbs says Tower will consider investing some of the money into any asset sales of state-owned enterprises, if they go ahead.