Weekly briefs
Equitable hikes rates, AJ launches new fund, Pru (USA) looks to demutualise.
Monday, February 16th 1998, 12:00AM
Equitable hikes ratesEquitable has increased the rates on its First Mortgage Bonds and Mortgage Income Trust.
The tax paid annualised rate on the First Mortgage Bonds is now 6.10 per cent (the equivalent of 9.1 per cent for a taxpayer on 33 per cent). The Mortgage Income Trust top rate is 8.25 per cent annualised.
Both these rates are for a three-year period.
Equitable has also made a change to its commission structure. Its three year bond will now pay intermediaries 1.5 per cent commission for applications received after February 16.
AJ adds funds
Armstrong Jones is to expand its product range by offering some of its parent company's funds in New Zealand.
In March it will launch the AJ Emerging Companies Fund which is an Australian product which invests directly into the Mercantile Mutual Emerging Companies fund.
It was established in October 1989 and has produced returns of 0.55 per cent, 11.87 per cent and 18.54 per cent net of tax and management fees in the one, three and five years respectively.
Pru (USA) demutualises
The global demutualisation trend is about to see one of the world's largest publicly traded financial services firm created.
Prudential Insurance Co of America (not related to the New Zealand Prudential) says it is taking steps towards turning itself into a publicly traded company.
While the move has been anticipated it has come sooner than expected.
Prudential says its mutual status has been a disadvantage to expansion through acquisition.
