News Round Up

Use of trusts increases; Commissioner of Financial Planning job description out; Property values down another 6.8%; New Fallen Angels fund

Monday, November 10th 2008, 6:57AM

The Trustee Corporations Association (TCA) says there has been an increases in size and number of personal trusts used in New Zealand, but the corporate trust sector has shrunk.

During the year, the number of personal trusts increased from 25,780 to 26,350 and the funds under supervision increased from $6.4 billion to $6.8 billion. Investments in corporate trusts including finance companies fell from $120.7 billion in 2007 to $109 billion this year.

Total funds collectively supervised by TCA members in trusts, group investment funds, managed funds, superannuation schemes, and participatory securities was $121 billion, down from $132 billion last year. Debt securities and unit trusts comprise around half of this total amount.

Wanted: Commissioner of Financial Advice

The Ministry of Economic Development has started seeking expressions of interest for the role of Commissioner for Financial Advisers. The commissioner will sit on the Securities Commission but has separate statutory functions set out in the Financial Advisers Act.

The role is expected to be full time. The commissioner has statutory functions and decision-making responsibilities under the Financial Advisers Act, which include: appointing members of a Code Committee; reviewing and proposing changes to a Code of Conduct for financial advisers; chairing a Disciplinary Committee; and serving as a member of the Securities Commission.

To be considered for appointment, candidates must have knowledge of, or experience in, the financial adviser industry or any other industry, commerce, economics, law, accountancy, public administration, or securities.

Property values down another 6.8%
QV's October statistics for the residential property market report a 6.8% decline in national property values over the past year (calculated over the three months ending October 2008 in comparison to the same period last year), down on the 5.8% decline reported in September. The average New Zealand sale price for October remained steady at $379,290. [READ ON]

Fallen Financial Angels
With markets and individual company share prices well down, Liontamer has launched its second Fallen Angels Fund.

The fund provides exposure to 12 large banks whose share prices are currently at historically discounted levels.

Liontamer says there is potential for excellent gains in these banking shares over the next five to six years, and the theme of this fund is very relevant in the current market.

The fund has a five and a half year time frame and offers full capital protection at maturity.

The companies in this fund include: Allianz, Banco Santander, Bank of America, BNP Paribas, Citigroup, ING Group, Intesa SanPaolo, JPMorgan Chase, Munich Re, Societe Generale, UBS and Zurich Financial Services.

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