News Round Up

Bridgecorp to raise $10 mill, BT picks up another award, Ords kick off OM IP series 5, Macquarie add to cash account

Monday, November 20th 2000, 6:34AM

Auckland financier and investment banker, Bridgecorp Holdings, is planning to raise $10 million in a capital notes issue so it can grow its finance book.

The issue will be in two equal tranches of $5 million, one with an initial term of two years maturing in October 2002 and the second, for three years maturing in December 2003. Interest will be at 11.5% and 12.0% per annum respectively.

The capital notes are fully subordinated unsecured debt securities, having a minimum subscription requirement of $5,000 with subsequent increments of $1,000.

Managing director Rod Petricevic said the additional capital raised by the issue will enable Bridgecorp to significantly grow its finance book. The company’s lending is targeted to the short term bridging and project finance markets with the majority of loans secured over real estate for terms averaging between six and 12 months. Bridgecorp’s finance book now exceeds $100 million.

Petricevic also announced that the company had arranged insurance cover of new mortgages with Lloyds of London - "we will apply this policy to all new loans and we would expect this to cover almost all lending by next August."

"The effect of the cover is to ensure that potential losses from defaulting borrowers are minimised. Lloyds will meet up to the first 75% of principal loss. That benefit flows through to all capital providers to the company including shareholders, Debenture holders and Capital Note investors.

BT picks up another award

BT Funds Management’s head of portfolio risk, Bev Durston, has been awarded Asia Pacific Risk Manager of the Year (Asset Management) by Hong Kong-based publication AsiaRisk.

Durston says most large institutions now recognise that risk management is more than a prudent accessory – it should be an integral part of the investment process.

"For large investment managers to remain competitive, they need to institutionalise their investment process through the implementation of risk controls," she said.

"Risk needs to be at the forefront of portfolio construction. The aim is not to limit the creativity or discretion of fund managers, but to make fund managers aware of what risks are being taken, so they can eliminate unintentional risk and ensure that the portfolio is being managed in accordance with a client’s profile.

"The relationships between sectors, countries and stocks, and the correlation these factors have with macro or structural shocks, means it is very difficult for any individual fund manager to be fully aware of the risks inherent in their portfolio – especially given the speed with which financial market move.

For more on Durston's role see earlier story Managers controlling their appetite for risk

Ord's kick off OM-IP 220 Series 5
Ord Minnett has kicked off the fifth series of its OM-IP 220 series, a combined investment which includes a futures and options trading strategy with a capital guarantee.

The series aims to achieve medium term capital growth in excess of 20% annually.

The core investment is the AHL Diversified Program managed by ED & F Man in London. In addition, a second investment will be made in a program developed by the Glenwood Group in Chicago.

The investment is for a fixed term and will mature on June 30 2009.

Macquarie add to cash fund
Investors can now use direct debits with the popular Macquarie Gilt Edged Access Account (GEAA).

The introduction of direct debits will allow clients to use their GEAA cash accounts in ways that until now have been impossible. This includes:

Regular savings programmes into unit trusts, superannuation, master trusts and wrap accounts, dollar cost averaging, automatic settlement of shares, paying mortgages, insurance premiums and rates.

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