1 Comment 1 Commentby Niko Kloeten
After the Supreme Court ruling in its favour over Maori water rights, the government is planning to go ahead with the IPO of Mighty River Power this year and has indicated it could list the other two big generating companies, Meridian and Genesis, this year as well.
New Zealand Financial Planning Authorised Financial Adviser Jordi Garcia said advisers were likely to get plenty of inquiries about the floats but most of them would probably come from existing clients.
“Certainly when there was talk of them being sold 12 to 18 months ago there was a flurry of inquiries to some of our advisers as to ‘how’s this going to be dealt with; should we make allocations?’” he said.
Garcia said if the floats did generate new inquiries these would present a great opportunity for financial planners to offer their other services.
“I think a lot of people that come through our doors are often driven by one thing; they will come in to talk to us because they are looking for a mortgage or they’re buying a first home or they’ve seen an investment opportunity. Very few people come in to do a full financial plan.”
Grosvenor Financial Services head of marketing and business services Andrew Lendnal said the SOEs were likely to generate considerable discussion with clients.
“I remember years ago when I was an adviser and things like Westpac or Contact Energy came up they would ask you, ‘do you think it’s an idea to purchase this?’”
Lendnal said savvier investors would seek advice but most people wouldn’t bother. “The DIYers will just go and pick up those things… they won’t even talk to anyone for advice.”
Niko Kloeten can be contacted at niko@goodreturns.co.nz
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