Global crisis hits GSF returns
The Government Superannuation Fund has recorded an after-tax deficit before membership activities of $583.3 million for the year to 30 June, 2009.
The results represent a return of -16.8% on average assets over the year. In the previous financial year the fund recorded an after tax deficit of $206.9 million, representing a return of -6.7% on average assets.
"Like other growth funds around the world, the fund has been severely impacted by the financial crisis which led to the worst downturn in investment markets since the Great Depression," GSF authority board chairman Tim McGuinness says.
As at 30 June, the fund's net assets stood at $2.65 billion, down from $3.53 billion in 2008.
Businesses continue to delay selling
Businesses continue to push out selling plans, despite market sentiment towards selling showing a small improvement.
The fourth ASB Succession Planning Monitor shows a net 6.8% increase in the three-plus year selling horizon, supported by a net 5% decrease in anticipated business sales prior to the two-year horizon.
"This is the first time this research has shown this measure moving positively revealing a small glimmer of a more positive sentiment starting to emerge," James Mitchell, ASB chief of relationship banking says.
Another main theme of the survey was that many business owners didn't know who would succeed to their business or how they would realise its value.
Banking relationship managers' advice also gained in favour.
Tower rights issue closes oversubscribed
Tower’s rights issue which closed on 23 September 2009 has been oversubscribed by 47%.
Total applications of $119.85 million were received from holders taking up rights and applying for additional shares. The maximum offer amount of $81.3 million of shares will be issued.
The new shares are expected to be issued today, 28 September 2009.
Anti-money laundering rules need to change
The Anti-Money Laundering and Countering Financing of Terrorism Bill needs to be significantly amended, according to a report from the Foreign Affairs, Defense and Trade Select Committed.
Justice Minister Phil Goff last week also released proposals for tighter laws on money laundering in the post-September 11 world and says that "some re-regulation will be required" to meet stricter international standards.
Directors, managers and major shareholders in the financial sector may have to meet new "fit and proper person" standards in proposed changes to money laundering rules.
Other changes proposed include:
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