News Round Up
Securities Commission to investigate fund managers, ING comes to life, NZRPT joins Unlisted, Peter MacGregors ploughs NZ market, BNZ changes horses.
Sunday, February 15th 2004, 9:45AM
The Securities Commission is to investigate fund management practices in New Zealand to make sure there are no dodgy practices which could be detrimental to investors.The news of the investigation comes after the market timing scandal in the United States and a similar probae across the Tasman.
"The practices relate to the pricing of the securities in managed funds, and essentially relate to the buying or selling of units at prices that do not accurately reflect the value of the underlying assets in the fund," Commission chairman Jane Diplock says.
"This can occur through trading that takes place after the close of markets and through trading that takes advantage of pricing differences between local and overseas markets."
The existence of such practices may benefit selected investors at the expense of others, particularly if the selected investors are privy to information that is not generally available.
To find out what the market timing scandal is all about and the different ways it works read
US Fund Scandals: What's it all about?ING, today, completed its transformation from fund manager to full financial services provider with the renaming of recent acquisition Club Life to ING Life. [MORE]
NZ Rural Property Trust joins Unlisted
New Zealand Rural Property Trust shares can now be traded on the Unlisted exchange (the alternative to the NZX).
The trust is the sixth company to join Unlisted. (Others include Bridgecorp, Skyline Enterprises, Blue Sky Meats,
Waipara Hills Wine Estates, INTAZ and Rangatira.
"It was important to provide an alternative market easily accessible by brokers to replace the trust’s listing on the second board of the New Zealand Exchange, which was cancelled last week," NZRPT company secretary James Wright says.
The trust has 3,100 unitholders and assets totaling $104 million.
Hastings based Esam Cushing & Co is the fourth sharebroker to join up with the exchange.
New bond managers
The Bank of New Zealand says its new mulit-manager structure for its international bond fund will be rolled out next month.
The change to a multi-managers style has been delayed for some months and there has also been a change in proposed managers.
Originally it was going to be Pacific Investment Management Company (PIMCO) and Fischer Francis Frances Trees and Watts. However, the latter has been replaced by BlackRock.
BNZ says a feature of a multi-manager approach is that specialist managers may change from time to time.
Earlier story: Performance pick-up at the death
Another listed investment company materialises
One of Australia’s most successful boutique global equities fund managers, Peters MacGregor, is raising up to A$100 million in an IPO being offered in Australia and New Zealand.
PMCM was established in 1999 and has generated an average compound gross return of 32.28%pa, mainly through investing in the United States market.
PMCM’s investment strategies and philosophies followed those of Wall St legends, Professor Benjamin Graham and Warren Buffett - taking a long-term approach to investment and using value-based methods for valuing businesses.
The company is a long-term investor, and only bought into shares that it was prepared to hold for at least 10 years.
It will hold a maximum of 20 companies.
Lead manager for the issue is Macquarie.
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