News Round Up

Avon lists, Bridgecorp not welcome at Dorchester board table, St Laurence bond offer opens, NZ debt market stronger, Smartshares savings plan starts, QV says property market slowing, and why you should attend the FPIA Success Forum.

Monday, April 11th 2005, 6:00AM

Christchurch-based Avon Investments, which is active in the lending market as well as the home equity release one, has listed on the NZAX.

Its parent, Propertyfinance Securities, provides specialist financing for domestic and commercial property through its brands Head Start, Prime First and Lifestyle Security.

Avon the first listing on the NZAX Market this year. Avon Investments chairman Barney Sundstrum said the listing was a significant step for the business. "We believe listing will allow us to continue our positive growth momentum, as well as giving us a cost-effective mechanism for accessing capital when we need it."

Bridgecorp not welcome at Dorchester board table
Bridgecorp’s attempts to get a seat at the Dorchester Pacific board table has been thwarted by the company’s shareholders.

At a recent special meeting Bridgecorp Capital nominated Eric O’Sullivan for the board and Dorchester’s major shareholder, Hugh Green Investments nominated Robert Carter.

Dorchester chairman Murray Radford says shareholders “strongly endorsed the directors' recommendation to vote against the Bridgecorp Capital nomination, and to support the Hugh Green Investments Ltd nomination.” Consequently Carter has been appointed.

St Laurence bond issue opens
St Laurence Property & Finance has opened a $50 million bond offer where investors will be paid either 9.25% for the fixed rate option, or a 2.25% margin over the 90 day bank bill rate to investors taking the floating rate option.

The bonds have a term of just over 5 years, with a maturity date of 15 July 2010.

“A key feature of this bond offer is the choice it provides investors; either an attractive fixed interest rate or a floating rate providing a significant margin over the 90 day bank bill rate, which will be reset quarterly,” St Laurence group managing director Kevin Podmore says.

Debt market stronger: Rapid ratings
Rapid Ratings says the New Zealand debt market has become stronger and healthier and there are opportunities for investors to make good returns at low risk.

It says the risk profile of the county’s debt issuers improved since the last report issued in October 2004.

Out of the 25 debt issuers rated 15 companies (60%) achieved investment grade status or higher, compared with 14 in the previous review, while just 4 (compared with 8) were rated as borderline investment grade and six (compared with 10) rated sub-investment grade.

In another encouraging sign, more companies had positive outlooks for 2005 (15 compared with 13 in 2004) signalling that their ratings will improve this year. Just three companies had negative outlooks.

Smartshares savings plan
NZX Funds Management has launched its Smartshares Savings Plan for all its index funds (TENZ, MIDZ, FONZ and MOZY).

The plan was available when NZXFM launched its FONZ fund late last year, and it proved popular with more than 50% of investors choosing to use it.

The plan enables Smartshares investors to make regular monthly contributions into any Smartshares fund they own and they will also be able to make one-off investments. The minimum contribution is $50 per month with the flexibility to stop, restart, increase or decrease savings.

Success Forum - be there
For the latest update on this year’s Financial Planners and Insurance Advisers conference and why you should attend – click here

Property market keeps slowing: QV
QV’s monthly property statistics continue to reinforce a gradual slowdown in the residential property market.

It shows that New Zealand residential properties have grown value by 12.1% in the 12 months to March 31, but down from the 13.5% annual growth reported in February. Find out more here

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