News Round Up
Managed fund fees high, AMP to sell shares, Common number for better service, UDC's latest rates.
Sunday, January 14th 2001, 10:40PM
The US Securities and Exchange Commission (SEC) says fees on managed funds have been coming down over the past four years but they are still higher than they were in the 1970s.
It has called for better disclosure on the true cost of fees, but has shied away from introducing a prescriptive regulatory regime.
In a report released last week the SEC has suggested two possible enhancements to the way managers disclose fees to clients.
One would require that annual and semi-annual reports include a table showing the cost in dollars incurred by a unitholder who invested a standardised amount (US$10,000) in the fund, paid the fund's actual expenses, and earned the fund's actual return for the period.
The second would require that unitholder reports include the cost incurred from fees based on a standardised investment amount that earned a standardised return.
Have Your Say!: Are fees too high in New Zealand?
Should the Securities Commission regulate the way fees are disclosed?
AMP sells shares
The sale involves about 9 million shares (worth about $200 million at current prices), and the proceeds will be distributed to AMP shareholders with the final 2000 dividend in April.
The foundation was established when AMP was demutualised in January 1998 to hold shares for members it couldn't locate.
AMP says it has been actively seeking to locate former members of the AMP Society who may be entitled to AMP shares for the past three years since the society was demutualised.
The remaining 20% of shares will be held by the foundation for charitable purposes.
Fewer numbers for better service
The New Zealand Stock Exchange has launched a new initiative to create one shareholder number across all registries.
This CSN (Common Shareholder Number) and its accompanying FIN (Faster Identification Number) will mean that a shareholder will require only one single CSN and common FIN to access all their listed holdings at the different share registries.
This initiative should lead to improved processing of buy and sell instructions.
Deposit rate changes
UDC has changed some of its deposit rates effective from January 15. The changes are:
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