News Round Up

Share ownership grows, but AMP sells down. Pengana gets S&P nod, Getting mortgages sorted, St Laurence plans more schemes, EQC goes with Trustees Executors.

Monday, July 18th 2005, 3:58AM

A new survey shows there is a rising level of share ownership amongst New Zealanders, but overall it is still at a low level.

A study conducted by NZX and ABN Amro Craigs says about 100,000 more New Zealanders have invested directly in the local sharemarket since 2000. Latest figures show 23% of the 18+ population own shares directly (ie: not through managed funds or superannuation schemes). This is up from 21% when the survey was last conducted five years ago.

NZX head of markets Geoff Brown said the rising trend of share ownership is good news for the investors and the New Zealand economy. "But it still leaves 77% of the adult population who are not accessing the benefits of share ownership directly in their investments.

The survey indicates that although participation in the sharemarket has increased, there are a significant number of investors who own fewer than five securities.

On the other hand
While there is a greater retail ownership of shares, one major fund manager, AMP, is reducing its exposure to the local market as the economy slows AMP Capital Investors says it will continue to pare back its New Zealand equity investments as warning signs of a slowdown in the economy intensify. [MORE]

Pengana gets S&P nod
The Pengana Emerging Companies fund has being described as competent by ratings house Standard and Poors.

Late last year, Pengana Capital Ltd. established a joint-venture profit-sharing arrangement to set up a small companies fund under the highly experienced, and well-regarded, Steve Black (ex-portfolio manager of the successful JB Were Emerging Companies Fund) and Ed Prendergast (ex-small companies broking analyst with Citigroup and ABN AMRO).

“The small team, lack of bureaucracy, and the limit placed on the ultimate fund size should give the manager the flexibility to act on stocks quickly,” S&P fund analyst Ken Ostergaard says. “Standard & Poor’s is pleased to see an alignment of interests between the portfolio manager and investors, but we remain cautious at this stage, due to the short-performance record of the fund and the possible business risk if this segment of the market experiences a prolonged downturn.” For more details on the fund click here

Getting mortgages sorted
The Retirement Commission has added a mortgage section on its personal finance website Sorted.

“Sorted Mortgages will answer a lot of questions for many New Zealanders who’ve been looking for tools and information like this for ages. It will help to reduce confusion and complexity around mortgages by explaining the jargon and helping people see how to manage their mortgage better,” Retirement Commissioner Diana Crossan says. For news and the latest rates go to this page

St Laurence plans more schemes
St Laurence investment and finance group plans to provide property investors with a number of proportionate ownership scheme property investment opportunities over the next 12 – 18 months.

“Proportionate ownership structures provide the opportunity for people to invest in commercial, industrial or retail properties who either don’t want the risk of owning a property outright or who couldn’t afford to otherwise invest in such properties,” says Shivana Satyanand, chief executive of St Laurence Funds Management.

EQC goes with Trustees Executors
The Earthquake Commission has transferred the custody and reporting for its $3.15 billion in domestic investment assets to Trustees Executors. The assets of the fund total approximately $4.5 billion and are currently invested in New Zealand government stock, New Zealand inflation indexed bonds, New Zealand cash assets, and global equities.

After the successful implementation of the EQC business in April 2005, Trustees Executors now provides custodial and accounting services for $20 billion of New Zealand’s institutional and retail investors’ funds.

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