News Round Up

Macquarie launches new bonds, St Laurence to keep buying Rural Equities, bank in trouble with Sec Com, new Term Deposit Bond, Phil's Blog discusses reaction to Stobo and adviser regulation...

Monday, November 22nd 2004, 3:03AM

Macquarie Equities has launched the New Zealand investment statement for Generator Income Notes, an Australian dollar investment.

It is the second in a series of high-income corporate debt products issued in Australia by Generator Investments Australia and the first to be offered in New Zealand.

Generator Income Notes were developed with two major differences from other similar CDO investments available in New Zealand or Australia.

Firstly, Generator Income Notes are expected to receive a AAA rating (from Standard & Poor’s) on the return of capital at maturity. This is the first time such a rating has been provided to an Australian-issued income investment.

Secondly, AXA Investment Managers, Paris S.A. (AXA IM) has been mandated to manage the underlying portfolios, meaning that should there be concerns about any of the companies in the portfolio.

Generator Income Notes are expected to appeal to New Zealand investors who have capital preservation as their primary objective, are seeking Australian dollar income, and who find traditional low risk investments, such as term deposits, are simply not paying enough interest.

Latest Deposit rate news
In the Deposit Rate section there are three new stories.

One is interesting in that a bank has been rapped over the knuckles by the Securities Commission for offering a term investment without an investment statement.
The second is a new tax-paid Term Deposit Bond from Sentinel
The third is Nationwide Finance telling every about their year.

St Laurence wants more of the farm
St Laurence Equities says it intends to acquire a further 720,000 shares in Rural Equities Limited (REL) at $1.60 per share to take its shareholding up to 19.9%.

St Laurence will acquire shares on a first in first accepted basis. The price of $1.60 per share is the same price that St Laurence paid to acquire its current 15% shareholding a and represents a 7.8% premium over the 60 day weighted average price as of November 18.

A letter from St Laurence outlining the purchase will be posted to REL shareholders during the week commencing November 22.

Phil’s Blog
The two big issues I want to talk about today are reaction to the Stobo report and an example of difficulties facing the advisory industry with self-regulation. Read my Blog here.

« Stobo report makes funds more attractive

Sovereign takes regulation bull by the horns »

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