News Round Up

Investors confident, Equitable rate rejig, Kiwibank urgent, Name changes.

Sunday, May 7th 2000, 12:00AM

Investor confidence reached its highest level in two years in the three months to March 31, according to the ASB Bank.

The bank's investor confidence survey, which has been running for two years, shows average investor confidence is up 7 per cent to 20 per cent since December 31.

While the survey may reflect a degree of new economy euphoria that was widespread prior to April, there are some other positive themes in the quarter.

These include the recovery of the New Zealand economy, rising interest rates lifting returns for term deposit investors and strong returns from world sharemarkets.

Residential property and managed funds continued to vie for first place as the investment thought to deliver the best returns.

Equitable rejigs rates

Equitable, which has attracted $15 million in funds in the past four months, (see fund manager standings here) has reviewed the rates on its three products.

For terms of one year and less the rates have been increased, while for terms of two years or more the rates have been reduced for its tax paid bonds and first mortgage debentures, but increased for the mortgage income trust.

Loyalty bonuses for reinvestments have also been changed. The rate for bonds and debentures has been cut from 25 basis points each to 15 and 20 basis points respectively. The rate for mortgage income trusts has fallen from 50 basis points to 20.

Equitable says its bonds may be more attractive to investors on the new 39 per cent tax rate, as they pay tax at 33 per cent and investors do not need to declare the income in their tax returns. Meanwhile, the unit trusts pay dividends with 33 per cent imputation credits.

Kiwibank more urgent: Anderton
Record bank profits combined with rapidly rising bank fees make the need for a Kiwibank even more urgent, Alliance leader and deputy Prime Minister Jim Anderton says.

He says the banks could reduce their fees by the same proportion as their fee incomes have increased and still make more money than they did last year.

A KPMG survey shows banks increased their profits by 33 per cent to $1,600 million last year.

ANZ Bank announced, last week, it had increased its after-tax operating profit 20 per cent to $139m in the year to March. Also, Westpac and Bank of New Zealand reported increased half-year results of $186.1 million and $175 million.

"If the ANZ reduced its fees by 15 per cent it would still make more money than it made last year," Anderton says.

Name change 1
Bank of New Zealand Financial Services Group has changed its name to BNZ Investments and Insurance.

General manager Rodger Murphy says the new name more accurately reflects the nature of the organisation.

Name change 2
Spicers has changed the name of its wholesale investment management arm to Arcus Investment Management Ltd.

Investment manager Paul Glass says the business had matured sufficiently to be given its own identity.

Spicers has recently become more active in the wholesale market, and it was expecting to grow its business after taking a 50 per cent stake in Australian planning firm Assure Group Ltd, which runs Monitor Money.

« Dedicated fund delayed

Get your tax questions answered online »

Special Offers