News Round Up

Proposed AUT changes lead to fund closures, Hunter Hall on ethical investing, New property fund launched, Russell pushes new standard.

Monday, May 31st 2004, 3:01AM

St Laurence says it is planning to close the growth funds in its Number One Portfolio series because of the government's plans to close the Australian Unit Trust loopholes.

"While the timing of the legislation is still uncertain we believe the opportunity for investors to take advantage of the benefits provided by this advantage is now very short," St Laurence says.

The company is planning to close its growth funds to new money from May 31. It anticipates completing the winding up of the funds on September 30 and paying out all proceeds by October 20.

Number One Portfolio Trust’s First Mortgage Income Fund is not affected.

Hunter Hall preaches ethical investment to NZ advisers

Ethical funds in Australia have become so accepted by the market that the leading one, Hunter Hall Investment Management, now has more than $A1 billion under management.

Chief executive David Buckland has been in New Zealand outlining to financial advisers how his company invests in funds that avoid so-called unethical enterprises (booze, fags, gambling and guns) while achieving high-growth rates.

Based in Sydney, he offers an insight into Hunter Hall's "deep-value" investment philosophy. [MORE]

Dominon Funds buys major shopping centre
Property investment group Dominion Funds is purchasing the Johnsonville Shopping Centre in Wellington for $28.98 million as a foundation investment to launch a new retail property investment fund.

Dominion Funds chief executive Paul Duffy says retail has outperformed both industrial and commercial property in recent years, and Dominion Funds has for some time been seeking a major investment with which to launch a pure retailing investment offer, Dominion Retail Fund Ltd.

"It is an ideal first property for a retail fund, as it actually consists of 60 separate retail tenancies. No tenant accounts for more than 9% of the rent, and future rent review dates are staggered," Duffy says. Currently it shows a net rental yield on the purchase of 9.8% on close to 100% occupancy.

A prospectus for the issue of shares and convertible notes has been registered and the fudn will be offered through the Money Managers advisory network.

Russell pushes new transition standard
Russell Investment Group is encouraging New Zealand funds to adopt new global standards to calculate the performance of institutional investment portfolios during a transition.

Transition management is a strategic tool for reducing clients’ risks and costs when restructuring their equity portfolios.

The standard, which is becoming known as the “T standard,” moves the methodology for measuring portfolio transitions closer to the methods used to measure long-term investment management mandates. Investors will benefit as results will be shown from their perspective, not that of the transition manager.

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