News Round Up

Global fund with a difference, PAA negotiates a discount, More finance company research becoming available, BRIC index launched, Opio assets fetch premium. Comment: Best own goal.

Monday, June 26th 2006, 6:31AM

Liontamer's second global fund is quite different to others. The Global Series 2 fund will invest in a 10 companies with well known, global brands.

The companies that make up the global brands index are: Canon, Citigroup, DaimlerChrysler, L'Oreal, Nestle, PepsiCola, Proctor & Gamble, SAP, Siemens and Toyota.

Another difference from previous funds is that it will have two types of units; Booster Units and Super Booster Units. Booster Units have 100% Capital Protection at maturity, Super Booster units have 90% Capital Protection at maturity. 10% of the Super Booster Units' capital is used to buy an additional booster on the Index.

PAA negotiates discount

The Professional Advisers Association has negotiated an arrangement with Shell which allows its members to save 7.5c per litre on petrol and 6c per litre on diesel prices (based on the regional price of petrol).

"The introduction of the Shell Fuelcard is another example of how the PAA continues to add value to its relationship with members," general manager Dave MacMillian says.

BRIC index launched
Standard and Poor's has launched the S&P BRIC 40 Index which is designed to provide exposure to 40 leading companies from the emerging markets of Brazil, Russia, India and China - the so-called BRIC country grouping.

The index is made up of large, well-traded, liquid companies currently trading on the Hong Kong, London, Nasdaq and NYSE stock exchanges.

“Securities in emerging markets are an increasingly popular option for investors, asset managers and plan sponsors; however, liquidity of the issues continues to be a cause of concern,” S&P managing director and chairman of the has Index Committee at Standard & Poor’s, David Blitzer says.

Comment: Best own goal
One of the best goals last week was at the Success Forum in Auckland, not the football World Cup in Germany. I have long argued that some of the finance company rating services in the market are not particularly helpful and in some cases darn right dangerous. [Read On]

More finance company reseach coming
Investors and advisers are going to get access to more research following the collapse of two finance companies. [Read On]

Opio sold at a premium
The Opio Forestry Fund assets have been sold at at 15.5% premium to City Forests.

The assets were sold in "an open and competitive bidding process" for $15.5 million which is $2.08 million above the minimum price unitholders stipulated.

Once the sale is approved by the minority unitholders, or the requirement for that approval is waived by NZX, the fund will be delisted, wound up and distributed in accordance with the unitholders’ direction.

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