News Round Up

The June issue of Asset magazine, which will be available this week, is the biggest one produced yet. There's 33% more pages in this issue compared to earlier ones. This growth in size demonstrates the support and presence Asset has built up in a short space of time.

One of the growing trends these days is that people are tending to opt for building their own fixed interest portfolios, as opposed to using managed funds. In this issue we examine the pros and cons of DIY fixed interest investing and explain how to put together a mixture of fixed interest investments.

Also in this issue we examine what the changes in the health insurance market mean, provide a special report on family trusts, plus report on the growing interest in ethical, or socially responsible, investing.

Besides all these stories we bring you news from around the world, profile the King of New Zealand's financial services industry and provide all the regular features including practice management, books, jobs, a diary of events and a crossword.

Cundy made this observation when reporting the trust produced a net surplus of $14.9m, after revaluation, in the 12 months to March 31.

This result was 15.2% higher than in the corresponding period last year. During the year the trust has bought the Millennium Centre in Auckland for $42.6 million and sold the Sovereign Centre in Wellington for $16.85 million.

On a like for like basis, the property portfolio valuation increased from $250.4 million to $252.5 million ($2.08m or 0.82%). After allowing for capital expenditure and costs of sale, the net property portfolio valuation increased $44,000, which in turn increased the net surplus for the period to $14.9 million.

The trust's net tangible asset backing at balance date was 99.29 cents per unit.

Cracking the Chinese puzzle
Tower says that it is making a "strategic exit" from its plans to try and crack the Chinese market and will instead focus on Australia.

Tower Group managing director James Boonzaier says factors contributing to the exit decision included China's imminent entry into the WTO and the consequent increase in multi-national foreign insurance and investment companies coming into the market.

This competition was likely to reduce Tower's chances of reaching its profit target.

Meanwhile AIA's parent company, American International Group, announced that it has been granted a license to sell life insurance in Beijing, making it the first foreign insurer allowed to do business in China's capital.

AIG's operating unit in China, American International Assurance Co., says it was also expecting licenses for three other cities - Suzhou, Dongguan and Jiangmen. It already has licenses for Shanghai, Guangzhou, Foshan and Shenzhen.

"The continued growth of China's economy and the resulting creation of a vibrant middle class in major cities such as Beijing offers great opportunity for AIG," AIG chief executive Maurice Greenberg says.

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