Market timing: Bad timing

Monday, November 17th 2003, 11:17PM

You have to feel for BT considering all the things it has been through in the past few years.

Besides having about as many owners as a dodgy used car (which of course it isn't), the business has had to endure many people changes - particularly in Australia. It’s also had the imbroglio with the Securities Commission over the exemption notice problems and now its star international share manager Putnum gets itself into major problems with United States regulators over the issue of "market timing."

(Like some of the other events BT’s not alone with the market timing one in New Zealand – it just gets the most attention).

Luckily the market timing issue hasn’t got much traction in the mainstream media – except for a piece on a website which suggested that market timing is “the greatest scandal in the history of the mutual fund industry” and that it “has sent the American saving market reeling.”

“This provides new evidence that the culture in the industry needs fundamental remedial behaviour modification. Managers ignore clear rules when profitable opportunities arise,” the columnist suggested.

I’m not sure you could say this about the New Zealand industry – however the story provides a salient lesson that people in this business have to be absolutely squeaky clean.

See stories:
Putnum reaches agreement with SEC
Business as usual for BT despite scandal

In other news
It's been a property kind of few weeks really. Last week we had the NZ Rural Property Trust annual meeting, ING is doing its thing firstly taking over management of the Paramount Property Trust - now the ING Property Trust, then backing its unlisted funds - MFL and SIL - into the listed vehicle. On Friday St Laurence Group announced plans to "do an Urbis". But of course differently!

See stories:
St Laurence to merge property syndicates
Listed trust to buy SIL and MFL properties
NZRPT's tax problems far from solved

Insurance news
AM Best gives Sovereign an A
www.goodreturns.co.nz/article.php?ArticleID=976488878

Financial planning’s big night out
The annual Financial Planner of the Year Awards dinner will be held in Auckland on November 19.
This year there are two awards, the CFP of the Year and the inaugural Young Financial Planner of the Year.
To find out who are the finalists in each award and to book your seat at the dinner go to http://awards.goodreturns.co.nz/
The awards are sponsored by AMP, ING, Sovereign and Tower.

Quote of the week 1
"They are the only people I know who are giving some of their own money as an apology for the syndicates that have not worked."
Sharbroker Chris Lee on St Laurence's plans to amalgamate 13 of its property syndicates and raise new capital from the public.

Quote of the week 2
“I changed his nappies.”
Ex-All Black and Canterbury hero Todd Blackadder normally instill fear into people, but not Christine Reuhman judging from her reaction when she saw a picture of the man during SIFA’s tour of the NZRFU headquarters on the weekend.

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Market timing: Bad timing

Monday, November 17th 2003, 11:17PM

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