Commonwealth Funds : Australia New Zealand Fund

The Australia/New Zealand Fund invests primarily in equity securities, including common stock, preferred stock, securities convertible into common stock, debt securities denominated in the Australian or New Zealand currency and securities of Australia/New Zealand issuers. Australian/New Zealand issuers include: issuers that are organized under Australian or New Zealand law; issuers that are listed on the Australian and/or New Zealand stock exchanges regardless of the country in which the issuer is organized; issuers that derive 50% or more of their total revenue from goods and/or services produced or sold in Australia and/or New Zealand; and Australian and/or New Zealand central and local government entities.

Australia is rich in natural resources and is a major exporter of many types of products. Some exports include metals, minerals, fossil fuels and agricultural products. Australia is gradually transforming into a service-oriented economy as it embraces new technologies. The sweeping changes in technology and the Asia Pacific region should open unprecedented opportunities for the Australian economy - opportunities Australians are well placed to capitalize on because of strong and continuing economic reforms.

New Zealand is a natural gateway to the southern Pacific Rim and an efficient producer of agricultural products. It has a market economy with sizeable manufacturing and service sectors complementing a highly efficient export-oriented agricultural sector. Energy based industries, forestry, mining, horti-culture, technology and tourism have expanded rapidly over the last decade. This economy is strongly trade-oriented.

Australia/New Zealand Fund | Global Fund | Japan Funds | Real Estate Securities Fund | Prospectus (pdf)

Investing in securities of foreign country issuers involve certain risks that are different from investments in U.S. issuers. The foreign markets are small, their listed securities are generally less liquid, involve higher transaction costs and have greater price volatility due to changes in politics, currency rates, foreign taxation, differences in auditing and other financial standards, etc.

Equity securities are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of the Fund will fluctuate as the value of the securities in the portfolio changes. Common stocks, and funds investing in common stocks, generally provide greater return potential when compared with other types of investments.