News Round Up

Wellington picked to pick up BT business, Speirs looks at advisers, Challenger launch, Financial Planning industry in crisis?

Monday, September 23rd 2002, 7:03AM

Speirs Finance is attempting to expand its distribution network by using brokers and advisers. The company is active in both the financial services and food industries.

"As an active lender, we are always looking for sources of quality funding to supplement our strong equity base and wholesale funding channels," it says in a letter to advisers.

The company is paying brokerage of 1.1% on investments of three years and 0.20% for three months.

It is paying 6% for money on call, 7.50% for three years and 8.25% for 20 month deposits.

Wellington tipped to pick up BT business

Boston-based Wellington Management is tipped to pick up the job of managing BT's international share business, according to the Australian Financial Review.

Westpac, which is going through the process of acquiring BT Funds Management, says that it isn't going to keep the BT international share team, rather it wants to outsource the management of that money to a like minded-organisation.

A decision on the outsourcing may come as early as this week. (The BT deal isn't expected to be completed until later this year).

BT has about A$6 billion of money under management in the international equities area and is Australia's largest locally-based international equities fund manager.

Frank Russell Company has been appointed by Westpac to find an international manager. It is understood other international fund managers on the short list are Fidelity Investments, Putnam Investments and Capital Group, the AFR says.

Sagitta (formerly Rothschild Australia Asset Management) which was also bought by Westpac recently already uses Putnam.

Financial planning in crisis?
Comments from Money Managers boss Doug Somers-Edgar about the state of the financial planning industry in New Zealand have created waves amongst planners.

Somers-Edgar said, on his weekly radio show, that the industry was in crisis. He reckons that it is so bad some advisers will steal money from clients.

To see what others are saying about his comments visit Good Returns' online forum here.

Challenger launch
Challenger's New Zealand chief executive John Rowley says the company will launch an innovative high yield fixed interest fund, a share broking subsidiary (Challenger First Pacific Sharebroking) and a small cap fund in the next quarter.

"We have worked hard over the last two years to demonstrate we are a viable brand, we are here to stay and we have innovative and top performing products," Rowley said last week.

The company will continue to promote its existing products including Challenger Trans Tasman Fund, Australia Share Fund, Challenger Safelink, Australian Portfolio Endowment Warrants, Bank Endowment Warrants and Telecom Endowment Warrants as well as working to increase the presence of the Socially Responsive Fund.

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