Weekly briefs
Super fund warning, FPA Tapes now available, Queen Street go-ahead, Perpetual pumps up the yield, Investment Issues in the New Millennium, Donaghys offer tied up and Does size really matter?
Sunday, December 12th 1999, 12:00AM
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Do YOU agree with Labour's Superannuation policy? |
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As reported earlier (see here) one way people may be able to avoid paying the extra 6c cent tax on all income over $60,000 is to have their employer channel it into a registered super fund. The employee can then draw money out of the fund and avoid the extra tax.
The reason this works is that super funds pay tax at 33 cents in the dollar, rather than 36c.
Rashbrooke says he won't allow super funds to be used as glorified bank accounts. Options available to the Government include the power to deregister schemes.
FPA Tapes
Have you heard the Financial Planning Association of Australia's conference was excellent? Are you disappointed you didn't make it to Sydney for the convention? Don't worry audio cassettes of all the sessions are now available through Good Returns' bookstore.
Click here to order your tapes now.
Perpetual pumps up the yield
Perpetual Trust says its Dunedin-based Crawford Property Fund has closed fully subscribed, and the fund's forecast yields have been revised upwards.
The original forecast yield was 10.75 per cent, however it has now been increased to 11.5 per cent because of an increase in property valuation from $6.1 million to $6.45 million.
The fund will be listed on the NZSE's secondary market and its first distribution will be before March 31.
Queen Street go-ahead
St Laurence Group's Queen Street Ltd property syndication has raised sufficient money to proceed with settlement on the retail complex at 186-202 Queen Street.
The fund is looking to raise a total of $10.95 million through an offer of shares and mortgage bonds and so far has raised more than $8 million.
Its original closing date was October 15, however it is now expected to remain open until January/February.
Does size really matter?
Sovereign says funds under $10 million can be cost effective, even though they are small.
Earlier this year the Consumers' Institute did two surveys of managed funds and immediately culled out any funds that had less than $10 million.
Sovereign says when a firm uses a multi-manager approach to investing management costs become marginal.
"There is the opportunity to invest with fund managers who, once you have met their minimum institutional amounts, charge the same or similar (in percentage terms) regardless of the size of the investment.
"And this is almost invariably cheaper than an individual could access the funds themselves."
It says that fund size is only one variable to be considered when looking for a suitable investment.
"Whether it is a valid concern really depends on the investment approach taken by the manager."
Investment Issues in the New Millennium
IPAC Securities will hold its annual conference in Auckland on March 17, 2000.
The theme is 'Investment Issues in the New Millennium'.
For more information contact Tania van Velzen at IPAC (09) 366 6672, or send an email here
Donaghys offer tied up
Balclutha Holdings says that its offer for Donaghys shares is now unconditional, having secured acceptances from Donaghys shareholders for 95.61 per cent of shares.
Balclutha was formed several months ago by Donaghys managing director, Ross Callon and AMP Asset Management, as a vehicle to bid for all Donaghys shares at $1:50 per share. Pencarrow Private Equity has jointly managed the transaction with AMP Asset Management.
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