News Round Up
Vic Park Market sale approved, Possibly the last OM-IP fund out, Ratings suspended on BNZ funds, Govt's new mortgage scheme.
Monday, August 4th 2003, 6:16AM
Vic Park Market sold
Unitholders in the Victoria Park Market property fund have approved the sale of the fund's property to Kitchener Group for $14.1 million.
The resolution was passed by an overwhelming majority. In total proxies representing more than 9 million of unit holdings in the fund (over 80%) were received, and only two proxies representing 13,000 units were received from investors who did not want the sale to proceed.
Once the liquidation process has been completed investors can expect to receive about 83 cents per unit.
Final 20%+ Fund
OM Strategic Limited are offering what could be the last of its OM-IP Series funds which have a target return of 20% annually.
The reason this may be the last of the capital guaranteed series of hedge funds is because the underlying manager, Man Group Plc, is restricting access to its AHL programme. This programme is the key driver of returns for the OM-IP 220 Series of funds and the recently closed OM-IP 140 Plus Ltd.
The offer closes on September 19.
BNZ's rating suspended
Morningstar has temporarily suspended Bank of New Zealand's star rating until the effects of its valuation errors are quantified.
BNZ Investment Management said last week that it had mis-calculated the unit price of five its funds due to issues surrounding valuing tax assets. Consequently it had temporarily stopped accepting new investments into the fund.
Morningstar considers the action taken by BNZIM to be in investors’ best interests, and to meet industry best practice standards.
BNZIM has said that it will put in about $7 million to bring the funds' assets up to their unit price.
Morningstar says this is a significant and commendable undertaking on BNZIM’s part. [MORE]
Govt mortgage insurance scheme
A two-year Government initiative with Kiwibank has been
launched to make access to home ownership easier for low to modest income earners.
Housing Minister Steve Maharey says the new mortgage insurance programme will enable Kiwibank to reduce the risk of lending to people with little or no deposit. From September, people earning up to $50,000 a year, or up to $100,000 in household income, may be able to get a home loan.
Maharey says the initiative aims to assist people for whom home ownership is just out of reach. Kiwibank is expected to approve about 1,800 loans as part of the trial. [MORE]
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