Fonterra funds queried (Business updates)

Wellington: Units in the Fonterra Shareholders Fund hit a record high last week despite ongoing increases in dairy product prices – prompting some in the industry to question whether investors fully understand the factors at work.
The units give investors access to Fonterra’s dividend flow but do not confer share ownership in the co-operative. They are designed to reflect Fonterra’s performance as a manufacturer of dairy products. Historically, high milk prices have tended to drive the dividend lower The strength of prices in the GlobalDairyTrade (GDT) auction translates into higher milk prices – which is a cost to the manufacturing side of Fonterra. But since its debut on the NZX last November, the price of the units has gone ballistic, much to everyone’s surprise, because GDT prices have rallied .
— NZ Herald