This week’s wrap starts with a little promo. Good Returns, New Zealand’s number one news website for advisers, is continually evolving and developing. From today we have added a new function where you can comment on articles. To do this use the comments box at the end of each article.

This is a great way for readers to comment on issues when they arise and give feedback to issues.

Two stories this week which you may like to comment on are the Commerce Commission’s heads-up in its ING funds investigation and the Ministry of Economic Development’s discussion papers on a complaints scheme.

It seems to me that the Commerce Commission announcement that any decisions on whether ING’s frozen funds were mis-sold are months away, and that even if it did think there was mis-selling, action may not be taken giving investors a clear steer on how to vote.

The MED’s proposals on a complaints scheme, and news that many organisations are interested in setting up suitable schemes is one of those necessary discussions. Since we published the story earlier, we have added copies of the discussion documents. You can download both here.

It seems having a robust complaints scheme will be good for the industry. It was interesting to see the latest Financial Knowledge Survey which said that less than 20% of New Zealanders have sought advice.

A couple of our other news stories this week have been strongly investment focused. These include a report on hedging strategies used by New Zealand managers, and also changes to tax rules with international bond funds.

On the life insurance product front we have the latest stats from the Health Funds Association which paint a positive picture of the health insurance market and also Russell Hutchinson asks a question: What is trauma for?

Today we also report that the move to separate the Asia-Pacific life insurance assets of AIG into a new company have taken another step forward.

Another story which you may like to comment on is this one where the ISI suggests the days of commissions are numbered. While the comments relate to investment products, particularly superannuation, one wonders when insurance products will be brought into the argument.

In depositrates.co.nz this week we report on the wind-up of the Auckland Mortgage Trust due to its inability to get a government guarantee, and the Rates Round-Up looks at what is happening with rates and the latest on Fortress Notes.

Have a great weekend.
Philip

Are you sick of hearing about the ING roadshows yet? (If not, have a read of my Blog and one from David Chaplin).

It seems ING can’t stay out of the headlines as the other big story here was news, first reported by Good Returns, that Naomi Ballantyne was stepping down as MD at ING Life. There is a little Blog on the story here, but more importantly comments from readers. If you would like to comment, or post a message to Naomi go to the comments section.

The other ING story yesterday was the Securities Commission putting out a release saying the investors in the DYF and RIF funds need to consider their options carefully before deciding which of the three offers on the table they want to take up.

Another major piece of news on Good Returns is the latest from the Securities Commission on how the advisory industry should be regulated. Our story also has a full copy of the report. This is essential reading for every adviser in the country. You can grab your copy here.

This is a story we will do more on next week, in the meantime if you have any comments or thoughts about what is being proposed, drop me a line at editor@goodreturns.co.nz.

To round off the big stories of the week, you need to see the views from the ISI which say that the days of advisers earning commissions on the sale of investment products are numbered. This is a fascinating story as I suspect it is not as black and white as it appears. It will be interesting to see if all the ISI members agree with this and whether it will extend to life insurance too?

In our People news, besides the Ballantyne departure, we have big changes at AMP Capital, and new advisers at Triplejump and Macquarie.

Late last week we launched a new website covering the home loan market. While Good Returns continues to run home loan rates and news, the new site www.mortgagerates.co.nz has even more information. Included is a wrap on what the economists and experts are saying. The Experts View section is a one-stop-shop for your economic wrap. Have a look at it here.

The good news this week for investment markets was around KiwiSaver performance numbers. FundSource tells us that most KiwiSaver funds are back in the black, and we understand the country’s big saving fund, the NZ Super Fund, also produced some positive figures.

Depositrates.co.nz has had a big week. The most popular story has been one reporting on concerns over cash PIE funds.

We also have a feature, Bond Focus, which examines what is happening in the bond market. Other stories report on PSIS and ING’s funds. You can read them at www.depositrates.co.nz.

Have a great weekend.
Philip

www.goodreturns.co.nz

As a young lad solving the puzzle of the Rubik’s Cube was one of those frustrating things that took me quite a bit of time and effort.

ING’s attempts to solve the puzzle of its CDO-backed funds, DYF and RIF appear to have the same characteristics. Long and slow.

The company’s roadshow around the nation this week, in tandem with its joint venture partner ANZ Bank, has generated plenty of media attention. Seemingly every day there is a new story doing the rounds and each one tries to find a more sensational angle than the last. We’ve had the stories about how much ING NZ boss Helen Troup gets paid, whether the company is for sale and a raft of other stories which appear to be more fiction than fact.

My guess, from what I have seen and heard, is that the Frozen Funds group of dissatisfied investors is behind a lot of this. They remind me of the sort of protest group that turns up at a rally, just for the heck of it. Rent-a-crowd type thing.

I have heard others describe them more like Al-Qaeda in their approach.

Having debate about the offer and what is happening is fine, but it would be nice if the protestors kept to the issue than go off on all sorts of tangents and spread rumours.

You might think I am being a little harsh, possibly I am. These people have suffered a big hit, and many are feeling, rightly or wrongly, they have been duped somewhere along the line.

One of the most sensible comments I have heard all week came from an ING executive who said everyone has to take a look at themselves and accept some blame. ING, ANZ, the regulators, advisers and investors.

I totally agree. What’s more, as the week has gone on ING and ANZ have fronted up (besides with cash) and acknowledged mistakes were made.

It’s about time advisers and investors did the same thing.

I, like many others, have been asked what I think of the offer. My view, (and I am not an investor in these funds because I couldn’t understand them) is that it’s a good one. There are three choices and the cash offer looks pretty attractive. A term deposit at 8.30% is highly attractive and way better than carded rates at the moment. Also the ANZ TD is currently government guaranteed – a fact passed over at present.

The bit about waiving legal rights is a tricky one. From ING and ANZ’s perspective it makes sense and is a reasonable quid pro quo for the amount of money they are putting in. As for the bit about having no guilt attached, that appears to be the reality of these types of commercial deals, love it or loathe it.

If I was an investor I would probably like it because it brings the matter to an end and gives me some certainty.

Holding on for a better offer looks even less likely than winning Big Wednesday this week – it didn’t happen.

Likewise, holding on for rulings from the Securities and Commerce commissions and hoping they make ING and ANZ produce a better offer is something I wouldn’t put a wager on.

However, I would suggest Troup is pretty good at solving the Rubik’s Cube and will have all the squares lined up soon. Some though may be a little battered.

Naomi Ballantyne’s decision to leave her “baby” ING Life is a significant loss for the life insurance industry…but it’s also not a big surprise.

A story started circulating late last year that she may move on. Also it seems when there are changes to the leadership of a group significant personnel changes follow.

We have seen this with ING since Helen Troup took over the reigns. She is in the process of making a new ING – which considering the current circumstances, isn’t a bad thing.

It’s a little irrelevant whether Naomi’s departure and Troup’s arrival are related. The purpose of this post is to acknowledge what Naomi has done and also give readers a chance to leave their messages.

No one would disagree with the proposition that Naomi has been a big figure in the life insurance industry, through her roles at Sovereign and her decision to leave and establish what was called Sovereign Mark II. That Mark II was Club Life and evolved into ING Life.

ING Life has been doing a great job in the life insurance market and certainly must be highly profitable for the parent company.

Naomi has often been outspoken and some of her views have created controversy. It’s important that the industry has robust discussions around issues and no doubt Naomi’s departure will be a big loss.

To leave a comment or your thoughts on her departure use the comments box below.

One of the themes to draw out of the news this week is around economic growth and those “green shoots”.

The Reserve Bank talked about the outlook for the New Zealand economy in its monetary policy statement yesterday and during the week we have run a couple of stories reporting on what fund managers think.

One of the new things we have done this week is launch a new website totally dedicated to home loans. The site at www.mortgagerates.co.nz also has a section on What the experts are saying. Here you can see a summary of economist views and also read their reports.

We also introduce a new home loan rate blog. Its first posting questions whether MPs should be telling banks their rates are too high.

Have a look at the site and if you know anyone wanting home loan information give them the mortgagerates.co.nz address.

Another trend at the moment is that we are seeing lots more investment product development – well, far more than last year.

Today we report on Brook closing its Alpha fund to new investment. Fisher Funds has also added another fund to its range and Liontamer has its latest fund in the market.

On Good Returns we have a Special Report on Liontamer’s Australian equities fund which tells you more about this offering. This one is different from earlier Liontamer funds as it has both protected and unprotected units.

KiwiSaver has also been in the news with the closure of the eosaver fund, as Good Returns predicted many months ago.

Our depositrates.co.nz site is running a regular round-up of news on Mondays now.

The other key story in the section is around the preferential share offer from Alan Hawkin’s Cynotech group. This offer has had a fair bit of attention as Hawkins neglected to mention his past, including the Equiticorp failure of the 1980s, in the prospectus.

We speak to Hawkins about this and what he is prepared to do.

One does wonder where the authorities are on these sorts of issues.

One area where there has been much news recently is new appointments in the industry. This week has been more active with ING appointing a CFO, insurance old-timer Trappy taking on a new position and a few other appointments pending.