News Round Up

Monday, September 15th 2003, 1:34AM

The capital guaranteed technoligy fund, ORB Technology, has extended its closing date to September 29.

The promoters, CGI say that they have received strong interest in Orb Technology from advisers across Australia and New Zealand.

"The applications already received indicate investor interest in accessing the long term growth potential of the global technology sector backed by the security of a capital guarantee from the world’s largest financial institution - Citigroup."

"To accommodate recent strong expressions of interest from several large investor groups we have decided to extend the original closing date for the offer by 17 days," it says.

Strategic boosts profit
Strategic Finance has reported an after-tax profit of $14.7 million for the year ending June 30 on the back of strong growth in its loans portfolio and its investment banking services.

Strategic Finance had a total loans portfolio of $180 million. Specific provision for impaired loans for the year was zero. Chief executive Jock Hobbs says this reflects the disciplined management and monitoring of the loan portfolio.

General debt provision on the balance sheet is 0.75% (zero point 75) of the total loans portfolio.

Strategic Finance has a B1 rating from independent corporate rating agency, Rapid Ratings. According to Rapid Ratings, a B1 equates to an A- from Standard and Poor’s and an A3 rating from Moody’s.

To see what rates Strategic is offering investors go to www.depositrates.co.nz

Kiwi Bond rate changes
The New Zealand Debt Management Office has increased the one-year Kiwi Bond interest rate by 0.25% and that the two-year and the four-year Kiwi Bond interest rates are to increase by 0.50%.

Kiwi Bond interest rates are set periodically from the moving averages of domestic wholesale rates. These changes have been made in response to recent changes in wholesale market interest rates. To see how Kiwi Bonds compares with other investments go to www.depositrates.co.nz

Absolutely demystifying
Absolute Capital has topped off another good year with total funds raised for the 12 months amounting to $113 million.

Managing director Deon Joubert says the group is looking to demystify alternative investments by making the investment process more transparent, leading the way in the Australian market with new reporting procedures.

The listing of the funds on the ASX was the first step in addressing criticisms of lack of liquidity and transparency.

In addition to the new disclosure system, Absolute Capital is also looking to differentiate its products by offering a more focused portfolio in the Absolute Return Fund and generating good returns while keeping standard deviations low.

Foreign currency scam
The United States Postal Inspection Service is conducting a criminal investigation into a United States firm that may have defrauded investors in a foreign currency trading scheme. The firm is International Foreign Currency, Inc (IFC).

Some New Zealanders may have made investments with IFC, the NZ Securities Commission says.

Investors may have been previously victimised by Evergreen International Trading, Inc (Evergreen) who had offices in the World Trade Centre in New York. The Evergreen case was recently prosecuted by the American authorities and a number of the defendants are awaiting sentence.

Many brokers or traders that previously worked at Evergreen went on to work with IFC. IFC initially used an address at 111 Cleveland Avenue, Long Beach, New York 11561. It then moved its operation to 990 Stewart Avenue, 6th Floor, Garden City, New York 11530. It has since gone out of business. Investors had been instructed by IFC to wire funds to JPMorganChase.

The United States Commodity Futures Trading Commission is also investigating IFC.

Any New Zealanders who invested with IFC is being asked to contact that authority to assist with its investigation.

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