Investment Opportunities
We offer a range of investment opportunities to investors. We strongly encourage you to contact us and arrange a meeting to determine the investments most appropriate for you.
However if you know what you want and just want access to the relevant documentation we will provide links to some of the most popular investments below.
Please note that inclusion of a product on this site is not an endorsement of its suitability for your needs. We are not necessarily recommending any product listed on this site.
Man Series 8 OM-IP 220 Limited is Available Again
For the first time, Man Investments Australia is offering an existing capital guaranteed fund to new investors.
Man Series 8 OM-IP 220 was launched in November 2002 and has been trading for more than 9 years. Over this time, the Company has generated medium to long term capital growth in both rising and falling markets.
Why consider Man Series 8 OM-IP 220?
Since November 2002, Man Series 8 OM-IP 220 has offered investors a fund with the following benefits:
- Ability to perform in both rising and falling markets^
- A safety net through the Capital Guarantee and Rising Guarantee from Westpac+
- Diversification benefits to a traditional investment portfolio
- Monthly liquidity**
These benefits are illustrated in the historical charts below.
To discuss this opportunity please ring Andrew or Jonathan on 0800 867 323 or This email address is being protected from spambots. You need JavaScript enabled to view it.
The Governments Member Tax Credit is "money for jam"
To take maximum advantage of the Government's Member Tax Credit to your KiwiSaver account make sure you have contributed the minimum $1,042.86 before the end of June 2011.
The oddly named "Member Tax Credit" has nothing to do with your tax return. It is simply contribution from the Government that matches contributions you have made during the year ended 30 June, up to a maximum of $1,042.86. All you have to do is make sure you've contributed.
Under the recently announced changes this is probably the last year you will get a $1 for $1 contribution from the Government from next year you'll probably only get 50c per dollar you contribute, up to the maximum. Still a lot better than nothing.
If you need help call us on 07 578 3863. Please have available your account provider and account number.
Click here to view a copy of the OnePath SIL Kiwisaver Scheme Investment Statement
Man Series 8 OM-IP 220 - Maturity approaching
Shares in Man Series 8 OM-IP 220 are due to mature on 30 June 2012. For a limited time only, an investment in Man Series 8 OM-IP 220 can be extended.
An Election Notice Pack outlining the options available to Shareholders and what they need to do can be downloaded by clicking here.
There are potential tax liability issues you should consider before maturity.
For more information, or to arrange an appointment to discuss Man Series 8 OM-IP 220, please contact Andrew or Jonathan on 07 578 3863 or 0800 867 323.
Equity Income:
A New Approach to Income in a World of Low Interest Rates
Craig Stent, the Portfolio Manager of the recently launched Harbour Australasian Equity Income Fund, has prepared the attached paper “Equity Income: A new approach to income in a world of low interest rates”.
This is a timely, relevant and considered paper that we hope you get some benefit from reading.
A Summary Follows:
- With interest rates globally and locally falling over recent years, and forecast to stay low for some time, investors are finding it more challenging to source adequate income from traditional investments such as term deposits, bonds and cash.
- A well constructed portfolio of New Zealand and Australian equities can provide investors with an alternative source of income, and the potential to grow the real capital base.
- Relative to other developed markets, New Zealand has over the long-term paid a high dividend yield. In the 10 year period to 31 December 2011 dividends contributed the majority of the total return. The picture is not too dissimilar for the Australian or US market.
- Companies in Australia and New Zealand are generally in a good financial position post the Global Financial Crisis (GFC). Many companies potentially have surplus cash on the balance sheet and are either returning capital to shareholders via dividends or undertaking other capital management initiatives.
- Harbour Asset Management has launched an Australasian Equity Income Fund which follows a quantitative and fundamental investment process in selecting a diversified portfolio of companies across the New Zealand and Australian markets. We believe that used in a balanced portfolio, this approach should provide investors with an attractive level of income with some capital growth relative to traditional income asset classes.
A reset security is one that will have its coupon (interest rate it pays) reset at a margin over the prevailing interest rate on the reset date. In NZ we have annual, three and five year reset securities. This is in contrast to a fixed rate security that has the same coupon until it matures.
These can be a useful investment option but, if not monitored, they can turn into a not so good investment option depending on the timing and the state of the interest rate cycle.
For example take the Rabobank Capital preference securities (RBOHA), these reset in October every year. When these were issued at $1.00 interest rates were north of 7.00% and the coupon was set at 9.51%, the Official Cash Rate (OCR) is now 2.50% and the coupon is 3.70% and they are trading at about $0.80. This applies until October when the rate will be reset at 0.76% over whatever the 1 year swap rate is then.
Now, assuming the same credit risk, would you sooner invest in a fixed rate seven year bond at 6.25% or a Rabobank Capital preference security at 3.70%? Before you answer please consider the following.
These securities will reset again in October and if there is no movement in rates it looks like resetting around current levels, hence your yield on the Rabobank might be around 4.6% for the next year.
Now if interest rates start to rise and in two years time the Official Cash Rate is 5.50% and the RBOHA's reset at 6.26%, your yield is now 7.83%, because you only paid 80 cents for the them. So you can see there is potential for capital gain on the reset securities.
On the other hand current seven year bond issues are paying a coupon of 6.25%, but in a couple of years if interest rates rise, investors may be demanding a coupon of 7.50% for seven year issues. Therefore your seven year fixed rate bond may see a fall in its capital value - a problem if you wish to sell before maturity.
The above is a very simple example with many assumptions but it should give you an idea of how reset securities can work in your favour under the right conditions and fixed rate securities can work against you.
Likewise the five year resets like BISHA to reset on 28/03/2013, BNSPA to reset on 30/06/2014 and ANBHA to reset on 18/04/2013 to name but three, these may not be resetting near their current coupons, as all three have coupons over 9.00% at present, what will that do to the price?
Call an adviser at IRGBOP on 0800 867 323 to discuss this further and see the opportunities available in the reset securities.
Man is a world leader in alternative investments. It structures, markets and manages a wide range of investment funds for individual, or 'private' clients, and for financial institutions, such as superannuation funds and insurance firms.
Our funds are capable of medium to long-term performance through all market cycles. This means they can perform in both rising and falling markets. Such investments can complement and diversify a traditional investment portfolio of shares, property and bonds
Man Investments Australia is part of Man Group plc, a specialist in alternative investments. Man Group, of London, was founded in 1783 and has grown to be a leader in alternative investments, with USD 68 billion under management.
Read more about Man Investments on their website.
The History of Man
Man started when James Man, a barrel maker, set up business on the shores of the River Thames in London in 1783. Soon after, Man became the exclusive supplier of rum to the Royal Navy, a contract it held for almost 200 years. In that time it developed to be a major trader in commodities, mainly sugar, coffee and cocoa.
Commodity trading eventually led to Man becoming an expert in trading on the world’s futures markets– i.e. buying and selling futures contracts for commodities in the future to hedge against the risks of see-sawing prices. By the 1980s the firm had broadened out into managing alternative investments for clients.
Rapid growth in demand saw Man expand to become, by the early 2000s, one of the world's largest providers of alternative investments.
Managed futures funds aim to generate positive returns in both rising and falling markets, and are able to do this because they can both buy and sell instruments, and therefore do not have to rely solely on markets increasing in value.
A hedge fund is a professionally managed pool of capital investing across a broad universe of assets. Managers are able to invest in a wide variety of instruments using flexible investment strategies with the goal of generating returns in a variety of market conditions.
In Australia
Man came to Australia in the early 1990s and helped to pioneer the introduction of alternative investments in Australasia. Man has played a significant role in the sector for nearly 20 years.
The first Man OM-IP fund, Man OM-IP 220, commenced trading in August 1997 and continues to operate today. Man has since launched 42 investment funds.