News Round Up

Who is lobbying Govt over UK Funds? Calan reduces distribution, Index changes, NZ keen share investors - apparently, Top funds management conference and We have a SuperTalk winner!

Sunday, August 6th 2000, 12:00AM

The Investment Savings and Insurance Association says it isn't lobbying Government or its officials for a change to the tax status of UK investment funds.

Currently these funds enjoy more favourable tax treatment than their New Zealand equivalents.

Chief executive Vance Arkinstall says the ISI has met with Finance Minister Michael Cullen, and officials from Treasury and the Inland Revenue Department, however those meetings were to find out what the Government was planning to do to level the playing field between New Zealand and UK domiciled funds.

The association's official position remains unchanged. That is it wants to see New Zealand managed funds treated in the same way as other investment options such as UK funds and residential property.

Currently there is speculation within the industry that managers who either don't have, or don't want to promote UK funds in New Zealand are doing some of their own lobbying.

Calan Cuts Distribution
Calan Healthcare Properties has reduced its distribution for the fourth quarter from 1.75 cents per unit to 1.33 cpu.

The directors told the Stock Exchange that the reduction is "not indicative of future distributions as it contains extraordinary items particular to this quarter."

The extraordinary items were investment evaluation costs expensed to the profit and loss account. The board had looked at making a substantial acquisition in Australia, but choose not to proceed.

Also there was a small loss on the disposal of one of the properties in the portfolio.

The cut in dividend for CHPT not related to other issues in the wider property market.

Index changes

St Lukes Group shares and convertible notes will be removed from the NZSE30, 40 and Mid Cap indices on August 10, assuming shareholders vote in favour of the takeover from Westfield Trust at a special meeting on Monday.

Waste Management will replace it in the NZSE30, Tourism Holdings will move into the NZSE40 and Sanford will become part of the Mid-Cap index.

Kiwis keen share investors, NZSE says
The New Zealand Stock Exchange says Kiwis are keen share investors by international standards, with four in 10 people having some form of direct investment in shares.

The finding comes out of a share ownership survey conducted by CM Research on behalf of the exchange.

While the headline figures look good, the picture isn't as bright as it appears. Look out for a detailed report on the survey in the News section later this week.

Funds Management conference
A top funds management conference covering all the important issues is being held in Auckland on October 19-20.

The conference, which is endorsed by the Investment Savings and Insurance Association, includes a keynote address from Finance Minister Michael Cullen, presentations on UK-based Open-Ended Investment Companies, Ethical investing and a panel discussion on whether or not the NZ funds management industry should be regulated.

For more information, and a copy of the programme click here

We have a winner
The winner of the SuperTalk competition is Michael Bacon of Wellington. Thanks for all those who entered. Keep reading SuperTalk for all the latest news on Superannuation.
Remember - SuperTalk's Discussion Forum is the place where you can have your say on superannuation issues.

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