Weekly Wrap: Reveal week

Well it's been reveal week for a number of the listed companies. We have had AXA and AMP produce their six-monthly financials and Tower front up to shareholders at its annual meeting.

Friday, February 20th 2009, 4:30PM

A theme, which was not totally unexpected, was that risk has been doing pretty well, investments are down and KiwiSaver is having some impact.

All the companies appear to be weathering the current turmoil well – well, better than some other listed companies.

Meanwhile Good Returns has reported this week that Kiwibank is ramping up its wealth management division with the appointment of five advisers. This story is noteworthy as it seems the whole Kiwibank model is changing from one of customer acquisition to service and, I think the expression is, care. We are seeing that across the company and I suspect, with such a fast growing customer base, looking after their needs is critical.

KiwiSaver has already been mentioned in this week's dispatches, but we are also starting to see its impact on the market. A view I have expressed is that KiwiSaver is the new regular savings product and will replace many of the traditional super schemes companies sold. Asteron has demonstrated this during the week with a decision to close its super business.

While funds management has been taking a hit from markets and weak investor confidence, we have been treated to the nominees for Morningstar's Fund Manager of the Year Awards. I suspect this is a bit like winning the most recent general election – the winner has a problematic situation to look after. Results are two weeks away still, and congratulations to all the nominees.

Another big week of news for the insurance sector and it's all about the As; AXA, AMP and Asteron. Also we have another significant story being a further update on the Inland Revenue Department and its crackdown on risk advisers. (Some don't think it is a crackdown, but it is looking more and more like that).

Also we have an update on AXA's Standard & Poor's rating. The other key piece is about life insurance statistics.

The mortgage market continues to be, let's say dynamic. Kiwibank and Westpac cut floating rates yesterday and expect more to follow.

My guess is that short-term rates will continue to fall as there is still relatively good margins in this business, but don't expect longer-term rates to get too much lower. In fact seeing a sub-5% short term rate is probably likely to appear before the next OCR announcement. Pity banks aren't that keen on lending at the moment.

Also in the Mortgage Centre we have an update on BNZ's performance and a story about United Home Loans being unable to write new business.

Clearly the slowdown in the economy is having a big impact on the market. It seems there are few new appointments going on presently, although Goldridge is expanding its network. If you have a new appointment or know of any let Maddy know (maddy@goodreturns.co.nz).

To round out the week we have a couple of features. One is a Special Report on the international fixed interest sector (possibly a recovery story this year) and the other is a review of the markets. This piece also has an excellent table showing you how markets around the world have been performing.

Have a great weekend.