News Round Up

Monday, December 20th 2004, 1:06AM

First NZ Capital has been chosen to provide custodial and administrative services for the hundreds of millions of dollars in investments that Bank of New Zealand manages on behalf of its Private Bank clients.

Bank of New Zealand has shifted its portfolio administration services to First NZ Capital’s ‘Asset Tracker’.

The move has raised eyebrows within the financial services industry as BNZ used to use the Ausmaq service which is owned by BNZ's parent company.

“Utilising the services of First NZ Capital, Bank of New Zealand will provide clients with reports on the status and value of investment portfolios, and will prompt corporate duties, such as the requirement to provide a tax certificate on behalf of a client," Private Bank head, Ralf Hohwieler says.

St Laurence check into Auckland's Hilton
St Laurence, in conjunction with David Henderson’s Kitchener Group and another investor have been successful in acquiring the Hilton Hotel in early December.

St Laurence is offering people who invested in The Princes Wharf (Hilton Auckland Hotel) Bond investment in 2000 the option to reinvest their funds into a new issue of Princes Wharf Hotel Bonds.

The bonds are forecast to pay 10.25% interest annually for 3 years and will be secured by a second mortgage over the Hotel property. An investment statement is due out in late January.

Calan increases divvy
Calan Healthcare is paying an increased dividend in line with what was disclosed at the company’s recent annual meeting.

The December quarter pre-tax distribution payout is being increased 7.5% from 2 cents a unit to 2.15 cents a unit. On an annual basis the pre-tax distribution will increase from 8 cents per unit to 8.6 cents per unit.

The increase is based on the recent sale of non-yielding assets and the imminent completion of Epworth Eastern in Melbourne.

Calan says it has received the deposit of $8.5 million in cash for its Waitemata land, and the remaining $4.325 million, plus interest at our cost of borrowing, will be received over a maximum period of four years.

“The sale value represents approximately 6% of our total assets, and is a significant step forward in making our portfolio fully yielding.” Calan says that the 100% pre-let Epworth Eastern in Melbourne is forecast for practical completion in late February 2005 with the doors being opened for business in early April 2005.

RBNZ invests in bond markets
The Reserve Bank intends to invest US$50 million in the newly created EMEAP Asian Bond Fund 2 (ABF2) as part of its foreign reserves.

ABF2 will be a fund devoted to investing in bonds denominated in the home currencies of EMEAP (Executive Meeting of East Asian and Pacific).

The motivation for the Asian Bond Fund is a desire to see the bond markets of EMEAP countries develop more quickly. It is expected that ABF2 will play a catalytic role in the development of the EMEAP bond markets, by helping promote new financial products, improving market infrastructure and minimising regulatory hurdles.

Building societies to bank govt?
The Labour/Progressive Government has supported a Green amendment to the Public Finance (State Sector Management) Bill that will allow Crown entities to bank with building societies.

“I’m delighted that local polytechs, universities, hospitals and other Crown entities will now be able to bank with their local building societies,” Greens finance spokesman Rod Donald says.

INFINZ grows
The Institute of Finance Professionals New Zealand Inc (INFINZ) has admitted 58 new members over 2004. The 58 new members join another 410 or so certified members and 180 non-certified members.

The certified members are accredited as professionals in corporate treasury, securities analysis and finance and investments. The members work in mostly senior positions in commerce as CFOs, corporate treasurers and treasury managers and in share broking, funds management, institutional and corporate banking, investment banking, as treasury consultants, corporate financiers, lawyers and accountants, in central and local government and in academia.

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