News Round Up

Don't sell says Perpetual to St Laurence investors; St John Board announces share buy back offer; FundSource introduces KiwiSaver Fund Manager of the Year award; Commission consults on QFE's disclosure obligations

Monday, October 25th 2010, 9:33PM

by Jenha White

Don't sell says Perpetual to St Laurence investors
Perpetual Trust has strongly advised investors in St Laurence not to sell to Stock and Share's latest 5 cent offer for debentures in St Laurence (in receivership).

Matthew Lancaster, head of Perpetual Corporate Trust says it is on track to recover between 15 - 22 cents in the dollar for St Laurence investors and the first payment is due to be paid to debenture holders in January.

"It is opportunistic and they are preying on investors who may not realise that a much better payment is coming their way."

He says the Securities Commission has previously warned investors about unsolicited offers.

"We strongly recommend that any investor seek independent advice from a reputable financial adviser," says Lancaster.

St John announces share buy back offer
St John Balanced Property Fund will be making an offer to its shareholders to acquire up to six shares for every 10 shares held, on a pro rata basis, at a price of $1.75 per share.

The offer is conditional on shareholders passing a special resolution at a meeting on November 15.

St John chairman Kevin Podmore says this offer represents an opportunity for shareholders to realise some of the shares they were issued by the company in July last year when their mortgage bonds were converted to shares.

The buy back price of $1.75 is the same price as the conversion ratio used at that time and shares repurchased will not be held by St John but immediately cancelled.

FundSource introduces KiwiSaver Fund Manager of the Year award
FundSource has introduced a KiwiSaver Fund Manager of the Year Award which will be given to a provider who offers the best solution for retirement savings across diversified, balanced, conservative and growth sectors.

Nominees for the new the award are AMP Financial Services, ING and Fidelity Life.

FundSource says qualification for the award is based primarily on a combination of fund manager's performance, their risk adjusted track record in the medium to longer term, and qualitative analysis.

FundSource established the new award for KiwiSaver fund managers, given funds now have an investment track record of over three years on which they can be evaluated.

Commission consults on standard conditions for QFE's disclosure obligations
The Securities Commission is seeking submissions on proposed disclosure obligations to be included in standard conditions for businesses granted Qualifying Financial Entity (QFE) status under the Financial Advisers Act.

The Act requires disclosure so that retail customers can make informed decisions about whether to use an adviser or follow the advice received.

Entities that wish to apply for QFE status are reminded that they must first submit an Adviser Business Statement to the Commission for consideration by 1 December. The Commission has received 30 statements to date.

Jenha is a TPL staff reporter. jenha@tarawera.co.nz

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