Monday 31st of May 2004

Generator Bonds Limited announces annual result Generator Bonds Limited, the trustee of Generator NZ No.1 Trust (Generator), has today announced a net profit of $102,726 for the 7.5 months ended March 31, 2004. It is intended that the profit will be donated to charity in accordance with Generator’s Master Trust Deed. Generator completed its $128 million listing of Generator Bonds (NZX code: GTR010) last August. The promoter of the issue was Macquarie Equities New Zealand Limited, a subsidiary of Macquarie New Zealand Limited (Macquarie). The head of Macquarie’s Financial Services Group, John Rowley, said Generator Bonds had traded strongly since listing on the NZX Debt Market (NZDX) on August 27, 2003. “There was a real gap in New Zealand’s fixed interest market for quality offerings which combine higher coupons with the security of a credit rating from a highly regarded ratings agency like Standard & Poor’s”, Mr Rowley said. Generator Bonds are secured fixed interest debt securities of Generator, with fixed quarterly interest payments of 8% per annum over a five year term, plus the security of an A- credit rating from Standard & Poor’s. Generator Bonds are one of New Zealand’s first issues of a structured credit product known as a collateralised debt obligation, or CDO. “Before Generator Bonds and similar products from other issuers arrived last year, investors had often settled for products offering lower returns and higher risk. The fixed interest market now has a better range of investments”, said Mr Rowley. A CDO comprises financial instruments known as credit linked notes, which are linked to the credit risk of a portfolio of corporate debt issued by 100 international and domestic companies. Companies in the portfolio include General Electric Capital Corporation, DaimlerChrysler and LVMH Moet Hennessy Louis Vuitton. The portfolio of companies is static, meaning that companies can not be switched in and out during the five year term of Generator Bonds. During the 8 months to the end of April the portfolio experienced 5 upgrades and 13 downgrades, in line with the market’s average of 2.5 downgrades to each upgrade. However Macquarie says because 8 months has passed, the probability of Generator Bonds defaulting has actually fallen, despite the larger number of downgrades than upgrades. This is because the shorter the period to maturity of each of the underlying companies (now 4 years 3 months, and not the initial 5 years), the lower the probability of their individual default. Macquarie’s analysis shows, based on recent credit ratings, the expected default ratio in the portfolio is now 1.86%, compared to the original 1.95%, and far below the 6.3% default rate required to erode Generator Bond’s protection amount. “As global default rates trend lower and lower, the risk return profile of Generator Bonds just gets stronger and stronger”, Mr Rowley said. “We are seeing an improvement in general credit conditions. Investment grade defaults continue to fall, with the past 12 months experiencing a global rate of just 0.06%, down from 0.52% in 2002 and 0.09% in 2003”. Mr Rowley said Generator Bonds bondholders should continue to feel very comfortable with the return they are receiving relative to the risk involved, and that there were opportunities to buy Generator Bonds in the market at above 8% per annum. Summary of ratings changes since inception (including changes to Credit Watch): Please find enclosed a release from Superbank, outlining the company's new interest rate offering on its SuperSaver account. If you have any questions, or would like to discuss this, please do not hesitate to contact me, or John Kerr. *News release: SUPERBANK NEWS RELEASE SUPERSAVER EXTENDS MARKET-LEADING INTEREST RATE TO SIX PERCENT Tomorrow's rate, available today, piles further pressure on term deposits WELLINGTON, 31 May 2004 -- Superbank today raised the interest rate on its SuperSaver account from 5.6% to 6.0%. This compares strongly against both the 6 month term deposit (TD) average of 5.42% and the 12 month TD average of 5.75% offered by the six High Street banks (see below), further strengthening its appeal to people with money locked away in inflexible term deposit accounts. Unlike many term deposits which only pay interest on maturity or after six-and-twelve-months, SuperSaver interest is calculated daily and paid monthly. |--------------------------+--------------+--------------| | | Six- |12 | | Published rate as of |months |months | | May28,2004 (for deposits | | | | $10-$50k) | | | |--------------------------+--------------+--------------| | ANZ | 5.30% | 5.40% | |--------------------------+--------------+--------------| | ASB | 5.80% | 6.00% | |--------------------------+--------------+--------------| | BNZ | 5.20% | 6.00% | |--------------------------+--------------+--------------| | Kiwibank | 5.60% | 5.70% | |--------------------------+--------------+--------------| | National Bank | 5.40% | 6.00% | |--------------------------+--------------+--------------| | Westpac | 5.20% | 5.40% | |--------------------------+--------------+--------------| "Once again Superbank sets the standard by offering tomorrow's rates today" says James Munro, chief operating officer of Superbank. "We strive to be the first bank to pass the benefits of a rising rate environment to New Zealanders -- putting money into term deposits today does not make much sense." Apart from the high-rate of interest and the flexibility to access their money, other benefits of SuperSaver to consumers include: *No fees or charges -- SuperSaver phone and Internet customers can deposit and withdraw money as often as they like, without incurring a cent in fees *No fixed term --Customers can withdraw their money at any time, without penalty. *No minimum balance -- all customers get the same great rate, no matter how much they have in their account About Superbank: Superbank is the trading name of St.George Bank New Zealand Limited. Superbank is a joint venture between Foodstuffs New Zealand and St.George Bank Ltd of Australia. St.George Bank Australia is a publicly-listed company in Australia and has assets of over AUD $55billion. The Foodstuffs group of companies (New World, Pak 'N Save, Write Price and 4 Square) is the fourth largest trading organisation in New Zealand. People can open an account very simply: by calling 0508 226 546 or by picking up an application form from a supermarket and posting it in. ** ends ** For further information, please contact: John Kerr Professional Public Relations Ph: (09) 979 2010 Cell: 021 801 968 Email: jkerr@ppr.co.nz (See attached file: SuperSaver Rate Rise - FINAL.pdf) Best regards, Mike Burgess Professional Public Relations ph 09 979 2032 - cell 027 295 6782 fax 09 979 2099 mburgess@ppr.co.nz Macquarie Adviser Services has won the Investorweb Research Six Star Superannuation Manager of the Year Award, for the third consecutive year. The award recognises Macquarie’s excellence in the provision of its broad range of investment options, its highly regarded investment and technical teams, its commitment to client service and its Forward Thinking solutions to its clients’ superannuation and pension needs. The Macquarie superannuation suite of products includes its ADF Superannaution Fund and its range of platforms starting with a simple style solution, Macquarie SuperOptions, to a more sophisticated wrap style master trust, Macquarie Super and Pension Manager and the Accumulator “baby wrap” offering, as well as providing support to the DIY marketing with our Investment Manager Wrap product. All up Macquarie administers aproximately $7 billion in superannuation funds. Macquarie Adviser Services Executive Director Neil Roderick said this third consecutive award meant a great deal to Macquarie because it proved Macquarie was a consistent leader in the provision of superannuation solutions for advisers. “Macquarie has some of the best technical support in the market and the fact that we offer a full range of funds and investment options in both the superannuation and allocated pension space, as well as award winning administration services, means we are providing advisers with a level of service that is hard to match,” Mr Roderick said. “Macquarie Adviser Services is constantly seeking to improve its service provision to advisers and our technical team has been driving force behind the proposed legislation for market-linked pension, or growth pensions. “Our aim is to provide advisers with the support they need to look after their clients’ needs and we believe this recognition by Investorweb is a strong indicator that we are achieving this aim. “Macquarie Adviser Services’ has a history of pioneering superannuation solutions within the Australian market with technical features that are both innovative and designed to meet the needs of advisers. “Macquarie had the first allocated pension available in the Australian market, we have one of the largest superannuation cash parking funds, we offered the first child allocated pension and were the first to compensate clients’ estates on death with the income tax paid on contributions. “All of these have been crucial to the delivery of outstanding superannuation solutions this year,” he said. Mr Roderick said Macquarie’s approach to delivering sophisticated superannuation solutions to advisers was to regularly ask advisers what they needed and focus on streamlined administration and efficient client service “The superannuation products in our range also offer a great deal of flexibility and investment choice with the potential for financial advisers to add significant value to the portfolios of their clients by providing their clients with more choice.” Mr Roderick said Macquarie Adviser Services was very happy to again be associated with the prestigious Investorweb Research Awards for excellence. This is a media release and graphs re Provincial Finance's annual results. David Lyall would be good to talk to ...a self-made multi-millionaire...he owned Affordable Homes, which he sold two years ago. He's only 39 and has several companies. He started investing in property while a student. Regards Di Keenan Thursday May 27 Impressive growth for Canterbury consumer finance company Canterbury based finance company Provincial Finance Ltd has increased its operating profits by a hefty 141 per cent in the last financial year. Provincial Finance¹s operating profit before tax jumped to $14.14 million in the financial year ending March 31, 2004, well up on the previous year¹s profit of $5.79 million. Announcing the annual results today (May 27) Company founder and director, David Lyall says the company¹s strong growth is expected to continue. The after tax profit for the year was $8.79 million compared with $3.51 million the previous year on a turnover of $46.6 million. Mr Lyall says the total assets for the group now stand at $148 million, an increase on the previous year¹s $80 million. Provincial Finance has 15,000 clients with demand increasing every month for its services. ³Such a strong performance will be welcomed by our investment clients and their financial advisers. Looking to the year ahead, we intend boosting our involvement in the property and business sectors,¹¹ he said. Provincial Finance lends mainly second mortgages on homes and motor vehicle and rural finance. While business growth in all sectors is increasing, the company¹s motor vehicle component is particularly strong. In 2003 the company was 22nd in the Deloittes Fast 50, which lists the 50 fastest growing companies in New Zealand, and fifth in 2002. The company, which also operates an office in Auckland, uses legendary former All Black Colin Meads to front its advertising campaign. Christchurch lawyer and former partner in Lane Neave, Colin Averill recently joined the Provincial Finance board. Mr Averill is also a director of Tasman Pacific Insurance, David Lyall Holdings, former Chairman of Nurse Maude Association and former director of Ernest Adams Ltd and Canterbury Frozen Meat Ltd. Provincial Finance¹s other directors are David Lyall, Warren Bell and John Edilson, the company¹s chief executive officer. NB. Graphs detailing growth in profits and total assets are attached. A photograph of David Lyall is available. For more information contract: David Lyall phone (03) 3631699 or Diane Keenan, Glass Tower Strategic Communications phone (03)3651445 ---------------------------- Diane Keenan Glass Tower Strategic Communications Ltd Level 6, 77 Hereford Street P O Box 2930 Christchurch Ph (03) 365 1445 DDI (03) 353 5659 Mob (027) 455 5159 Fax (03) 365 1446 1 June 2004 - New Zealand Exchange Limited (NZX) is pleased to announce that it will take over the calculation of the CSFB New Zealand Government Bond and Bank Bill Indices and the CSFB New Zealand Corporate Bond Indices from today, 1 June 2004. These indices will be known as the NZX New Zealand Government Bond and Bank Bill Indices and the NZX New Zealand Corporate Bond Indices. The Government Bond and Bank Bill indices have been calculated since 1985 and the Corporate Bond Indices since 1994. They are the definitive benchmarks for New Zealand's fixed income market. "In re-launching the new NZX Bond Indices, NZX consulted with a broad group of financial market participants in order to ensure the indices accurately reflect the New Zealand debt market in its entirety," said Guy Fisher, NZX Indices Manager. "Our goal is to provide the market with the most complete and accurate debt information available." Andrew Michl of ING (NZ) Ltd is pleased with the handover. "We feel confident that NZX will provide a comprehensive range of fixed interest indices against which institutional clients can effectively benchmark their portfolios." All index levels will be posted on our web site (www.nzx.com) on a daily basis and will be available via the usual NZX Data providers.