News Round Up

Better value in Australian shares, Bollard expected to leave rates alone, Protecting kids'inheritence, AXA to delist.

Monday, March 6th 2006, 6:43AM

The New Zealand Investment Trust is proposing to change its mandate to allow it to increase its holding of Australian listed shares.

Its advisers, Brook Asset Management, “have been finding better value among Australian securities in the past two years, and our Australian investments have added good value to our shareholders.”

“For the first time, we are now at the point where fully 35% of our total assets are in Australian securities or cash.”

NZT is planning to change its mandate so it can have 40% of its portfolio in Australian shares. It also wants to “allow for even greater amounts from borrowed funds”. While it has used little leverage to date, the board believes its could be advantageous from time to time to have an increased debt facility.

Bollard expected to leave OCR alone
Just about nobody expects Reserve Bank governor Alan Bollard will change interest rates on Thursday, the debate being over whether he will maintain a mild bias towards higher rates or switch to a more neutral stance. [READ MORE]

Protecting kids'inheritence
Christchurch mortgage lender Avon Investments has added an equity guarantee feature to its Lifestyle Security home equity release product.

Clients can now nominate up front how much of the equity in the property they wish to leave behind for the family-up to a maximum 50% of the home's value.

The equity guarantee feature is the second major revision to the product following the change to a line of credit, and was aimed at increasing customer peace of mind.

Brand Manager Maurice Mehlhopt said "clients are now very relaxed about the idea of taking some money from their property to support their lifestyles as they grow older, but they often still have a nagging feeling that they should also by providing something for their children when they pass on."

AXA to delist
AXA will be delisted from the NZX on March 31 due mainly to low levels of trading and costs.

The company says that there is a the low volume of its shares traded on the NZX, when measured against the various costs and other obligations associated with the maintenance of the secondary listing on the NZX. The listing no longer represents good value for shareholders, it says.

AXA shares will transfer to the company’s principal register in Australia.

“There will be no effect on our businesses in New Zealand,” it says.

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