About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   depositrates.co.nz  |   landlords.co.nz
Last Article Uploaded: Tuesday, December 6th, 5:31PM
rss
Investment News

People: FMG chief heads for the sun

Good Returns speaks to former Farmers Mutual Group ceo Michael Millar about his move to Nelson, his business plans and his seasoned opinions on the financial marketplace.

Tuesday, May 22nd 2001, 9:47AM

by Sonia Speedy

Michael Millar's got the look of a man in control. He sits in his new office admiring a new piece of artwork and talking about his daughter's upcoming wedding.

He's making more room in his life for recreation now, giving up his role at Palmerston North-based Farmers Mutual Group in January to set up a new business in Nelson. It is simply called Investment Services, to go with his new simplified life.

"Nelson is a lifestyle choice for me," he says.

"I'm at a point in my working life where I've chosen quite deliberately to be located where I want to be and then develop a business around this particular vocation."

Millar says it was time to leave Farmer's Mutual.

"I'd been there for seven years. When I joined the company I was of the opinion that five years as ceo of a small company, in which one sort of dominates strategy, was probably enough."

His new business utilises his ability to identify opportunities for New Zealand small business, and his familiarity with what investors are looking for, he says.

"Many small businesses in New Zealand run up against an inability to obtain the necessary capital to enable their growth, particularly if they're relatively new. What we're doing here is identifying good small New Zealand businesses and putting investment funds in touch with them."

Investment Services also provides senior management for these small companies, when needed.

The company is currently focusing on three enterprises, including syndicated forestry, with a group of investors involved in a "couple of significant forests in the North Island".

It also manages four property syndicates, totaling around $60 million, and The Crossings vineyard partnership in Marlborough.

Despite syndicated properties having had a bad reputation in the past, Millar says they're still a good way to go when handled the right way.
"There is a reaction about property that had its gestation period back in the late eighties when the property market died and with it liquidity in the syndicated property market."

Millar says that for a while the only type of investment that investors were prepared to put money into was listed property. "Say you start up from scratch a listed property vehicle, invariably you will find that vehicle on the stock exchange trades at a discount to asset backing.

"I personally don't have a lot of sympathy for putting money into something to immediately see the marketplace put a discounted value on it."

Millar says he was more comfortable with the less liquid syndicated properties as long as precautions were taken and clear objectives set, including creating exit strategies, before getting started.

"The feature of our syndicated properties is that they all tend to be 'big box' kind of properties, of the nature of The Warehouse buildings, Big Fresh or Placemakers. They are the kind of building with large simple construction, good floor space, good parking, versatile usage and lots of tenancy opportunities out there should a tenant fail."

He believes the wine industry is one of the "really good stories in New Zealand".

"What is clear to me is that in respect of some our wines, sauvignon blanc in particular, we do have a difference in the wine we are capable of making. It's associated with our climate - those long sunny days and the cool nights that leave us with a fresh, bountiful wine."

Millar says the statistics show that even though production volumes were growing, price was also increasing.

"That tells you very clearly that we're not anything like reaching the limit of demand for our product."

He believes there is a great future in other varieties as well, with New Zealand already being noticed for its pinot noir and some reds.
In terms of the health of the funds management and insurance market place, things are generally looking good, he says.

The financial services world at large was the subject of significant consolidation, which was happening in a lot of industries, including the wine industry, he says.

Old boundaries were collapsing, such as those between insurance and banking, and companies within both industries were becoming less visible in a "bricks and mortar" sense.

"I don't think there are any banks in New Zealand that don't offer insurance and many insurers - AMP is a classic case - are heavily involved in the banking industry. What we used to call fund managers are now operating right across the board and the big companies that come out of Europe and the US are seeking to dominate."

This was the result of electronic transactions becoming the norm, and more people choosing to enter websites, meaning brand strength was becoming hugely important.

"I think it's a reasonable bet that international boundaries will come down and you could be an American and buy your insurance out of New Zealand if you so want.

"Certainly many, many New Zealanders have a large proportion of investable funds offshore through an overseas unit trust company or investment manager."

As his new business finds its feet, Millar is working five days a week, but he's hoping to scale that down to four, so he can put more energy into other interests like tramping and fishing.

After buying a 40-acre block out of Appleby with his wife Gillian some years ago, they were now designing a house for it and currently had 200 lambs.

With his wife due to move down from Wellington in a few weeks, both were also keen to get into some skiing and horse riding.

While he waited for her to arrive Millar was dividing his time between "cruising the boat markets" and the financial markets.

« Why TAA adds valueKing builds an empire »

Special Offers

Commenting is closed

 

print

Printable version  

print

Email to a friend

Good Returns Investment Centre is bought to you by:

Subscribe Now

Keep up to date with the latest investment news
Subscribe to our newsletter today

Edison Investment Research
  • Seneca Global Income & Growth Trust
    29 November 2016
    Multi-asset investment with a value approach
    Seneca Global Income & Growth Trust (SIGT) aims to generate income and long-term capital growth from a range of asset classes. Investments are made for...
  • Tetragon Financial Group
    28 November 2016
    Positive returns from all asset classes in Q316
    Tetragon Financial Group (TFG) reported fair value earnings of US$49.7m for the third quarter of 2016, with positive contributions made by all asset classes....
  • Worldwide Healthcare Trust
    23 November 2016
    Finding investment opportunities in healthcare
    Worldwide Healthcare Trust (WWH) aims to generate long-term capital growth from investing in a portfolio of global healthcare stocks; a differentiating...
  • JPMorgan Global Convertibles Income Fund
    22 November 2016
    Low-volatility, income-tilted convertibles portfolio
    JPMorgan Global Convertibles Income Fund (JGCI) is the only UK-listed closed-end fund focusing on convertible bonds. While its primary aim is to provide...
  • HBM Healthcare Investments
    21 November 2016
    Potential for further outperformance
    HBM Healthcare Investments (HBMN) is a Switzerland-listed closed-end fund investing in listed and private healthcare companies globally. In a volatile...
  • Heliad Equity Partners
    16 November 2016
    German tech growth and venture portfolio
    Heliad Equity Partners (HPBK) is a private equity investment company with a Germany-focused portfolio comprising listed and unlisted investments across...
© 2016 Edison Investment Research.

View more research papers »

Today's Best Bank Rates
Heartland Bank 3.00  
Heartland Bank 3.00  
RaboDirect 3.00  
Based on a $50,000 deposit
More Rates »
Cash PIE Rates

Cash Funds

Institution Rate 33% 39%
ANZ 0.10    0.10    0.11
ASB Bank 0.40    0.41    0.42
ASB Bank 0.55    0.59    0.56
ASB Bank 0.60    0.61    0.64
ASB Bank 0.65    0.66    0.69
ASB Bank 0.70    0.72    0.75
Heartland Bank 2.50    2.59    2.70
Nelson Building Society 3.75    3.90    4.08
RaboDirect 1.50    1.55    1.62
SBS Bank 1.80    1.86    1.94
TSB Bank 1.75    -    1.89
Westpac 0.35    0.36    0.38
Westpac 0.05    0.05    0.05
Westpac 2.60    2.67    2.79

Term Funds

Institution Rate 33% 39%
ANZ Term Fund - 90 days 2.60    2.67    2.79
ANZ Term fund - 12 months 3.35    3.45    3.60
ANZ Term Fund - 120 days 3.00    3.09    3.22
ANZ Term fund - 6 months 3.35    3.45    3.60
ANZ Term Fund - 150 days 3.25    3.34    3.49
ANZ Term Fund - 9 months 3.60    3.70    3.87
ANZ Term Fund - 18 months 3.60    3.70    3.87
ANZ Term Fund - 2 years 3.50    3.60    3.76
ANZ Term Fund - 5 years 3.70    3.81    3.98
ASB Bank Term Fund - 90 days 2.60    2.67    2.79
ASB Bank Term Fund - 6 months 3.20    3.29    3.43
ASB Bank Term Fund - 12 months 3.20    3.33    3.48
ASB Bank Term Fund - 18 months 3.50    3.65    3.81
ASB Bank Term Fund - 2 years 3.65    3.81    3.98
ASB Bank Term Fund - 5 years 4.10    4.28    4.48
ASB Bank Term Fund - 9 months 3.60    3.75    3.92
BNZ Term PIE - 120 days 3.00    -    -
BNZ Term PIE - 150 days 3.30    3.38    3.53
BNZ Term PIE - 5 years 3.70    3.86    4.04
BNZ Term PIE - 2 years 3.35    3.49    3.65
BNZ Term PIE - 18 months 3.50    3.65    3.81
BNZ Term PIE - 12 months 3.25    3.38    3.53
BNZ Term PIE - 9 months 3.60    3.75    3.92
BNZ Term PIE - 6 months 3.15    3.28    3.42
BNZ Term PIE - 90 days 2.75    2.82    2.95
Co-operative Bank PIE Term Fund - 6 months 3.40    -    -
Heartland Bank Term Deposit PIE - 12 months 3.40    3.53    3.69
Heartland Bank Term Deposit PIE - 6 months 3.30    3.43    3.58
Heartland Bank Term Deposit PIE - 9 months 3.70    3.85    4.02
Heartland Bank Term Deposit PIE - 18 months 3.30    -    -
Heartland Bank Term Deposit PIE - 2 years 3.30    3.43    3.58
Heartland Bank Term Deposit PIE - 5 years 3.70    3.85    4.02
Kiwibank Term Deposit Fund - 150 days 3.00    3.08    3.22
RaboDirect Term Advantage Fund - 12 months 3.40    3.50    3.65
RaboDirect Term Advantage Fund - 6 months 3.50    3.60    3.76
RaboDirect Term Advantage Fund - 90 days 2.85    2.93    3.06
Westpac Term PIE Fund - 150 days 2.80    2.88    3.00
Westpac Term PIE Fund - 120 days 3.40    3.49    3.65
Westpac Term PIE Fund - 18 months 3.20    3.29    3.43
Westpac Term PIE Fund - 12 months 3.40    3.49    3.65
Westpac Term PIE Fund - 6 months 3.35    3.44    3.60
Westpac Term PIE Fund - 9 months 3.10    3.17    3.32
Westpac Term PIE Fund - 90 days 2.50    2.56    2.67
Westpac Term PIE Fund - 2 years 3.70    3.79    3.96
About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com