News Round Up

Money Managers to end radio show, Calan to remain a trust, Direct Selections and Sentinel doing well. Here come the FONZ.

Monday, November 15th 2004, 3:26AM

Money Managers to end radio show
Money Managers is ending its hour-long Sunday morning radio show after 14 years on air.

The “Money Show” which airs on Radio Pacific is being ended as “the talk-back format no longer meets (Money Managers) marketing objectives.

The last show will be broadcast on November 21.

Sentinel exceeds expectation
Sentinel says that it can confidently claim the market leader mantle in the home equity release market.

It says that in its first nine months of operation it has received more than 5000 direct enquiries and received applications for more than 500 loans totalling over $20 million, of which $17m have been settled so far.

The company’s results far exceeded expectations and the company had now doubled its original first year plan.

The average age is 73 years and the average loan, within a range of $20,000 and $500,000, is $43,000. On average people have borrowed sixty-five percent of the maximum they are able to.

Calan to remain a trust
The directors of the Calan Healthcare Properties Trust have decided to keep the investment vehicle in a unit trust structure, rather than shift it to a company.

The board looked at the issue as part of a commitment given to unitholders that it would review governance options. It says that “the best economic interests of unit holders will be met by the retention of the current structure.” [MORE]

Here comes the FONZ
The New Zealand Exchange is launching a new exchange-traded fund (ETF) which will invest in stocks within the Top 50 index.

Called FONZ, or Fifty of New Zealand, the new fund will be passively managed and will track the Top 50 index except for the fact that the maximum weighting of each stock within the fund will be 5%.

The weightings of each stock will be reset at the end of every quarter. The exchange is aiming to raise about $35 million from the offer, which opens on November 15 and closes on December 3, but has capped the amount that can be raised at $50 million. [MORE - including roadshow dates and investment statements]

Direct Selections performing well
Sovereign says the performance of its new Direct Selections products has been very good in its first six months.

Direct Selections investors hold portfolios of shares selected by Brook Asset Management, and bonds, selected by ASB Group Investments in their own name.

The Australasian Share Selection returned 16.68% (before fees and tax) for the six months to end September against the benchmark returns of 9.31% for the NZSX50 and 0.54% (NZD) for the ASX300 for the same period, Sovereign general manager distributed products Scott Black says.

“The performance was obviously helped by the markets, but the consistent out performance over both the quarters gives added confidence in Brook’s research expertise.

The bond selections were offering yields of 6.89% for the NZ Corporate Bond Selection and 6.54%. for the NZ Bond Selection at the end of September.

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