Broadlands wants more balanced look at finance companies
Broadlands Finance has called for “a more balanced view” of finance companies following criticisms of the sector.
Wednesday, July 6th 2005, 9:34PM
National business development and investment manager Ian Hardman says the sector has come under attention following some well publicised difficulties, with focus from recent industry events such as the recent FundSource and Financial Planners and Insurance Advisers Association conferences.
“The considered question arising is, whether finance companies are sufficiently capitalised to trade through difficult economic conditions and continue to meet debenture interest as it falls due along with maturity redemptions.”
“Media commentary has unwittingly cast a pall over all finance companies and perhaps contributed to a slowing of investment funds for some.” Hardman says.
“While there is a need for informed debate and criticism, the industry also needs to hear about finance companies which are successful, well capitalised and what strategies they have adopted which have contributed to their success.
"There are too many well-intended comments made in isolation and some without qualification. Some fund managers have even commented on the risk of finance company debentures in subtlety promoting their own funds. The irony here is that some fund managers actually use finance companies within their adviser network.”
“There are a myriad of finance company offerings out there which has quite rightly heightened concern in the public domain. But care must be taken not to tar all finance companies with the same brush. Even though some finance companies may not be rated by Rapid Ratings, Morningstar, FundSource, or Bond Watch it does not mean to say they are not good finance companies. Let’s bring back some balance to this debate,” Hardman says.
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