The Securities Commission is having yet another go at a Money Managers related company.
This morning it put out a press release saying that advertisements for the Harbourside Property Fund, which is being managed by Dominion Funds Management, and promoted by Money Managers are "confusing."
The advertisements state, in very large type "$7.89 pa per $100 invested". Immediately below this figure, in small print, the following explanatory paragraph is linked by an asterisk:
The before tax cash distributions to investors for the first 12 months for each $100 invested will be made up of $3.22 debenture interest and $4.67 debenture principal repayments (Resident Withholding Tax will be deducted from the debenture interest). Please see the registered prospectus and investment statement for further details.
"The commission believes these advertisements are confusing," chairman Jane Diplock says.
It considers that the prominence of the statement "$7.89 pa per $100 invested" gives a confusing impression of the returns from the securities. A person reading the advertisement may think the figure of $7.89 is equal to a return of 7.89% on the investment.
The commission says although it thinks the ads are confusing it is not going to take any action with regard to the Harbourside investment statement and registered prospectus.
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