Watchdog sniffs around Kiwi Income unit deals

A statement by the commission, which enforces NZX rules, yesterday confirmed the investigation had been requested by the exchange, but gave no details.

However, the Business Herald understands several complaints were made to the exchange by fund managers and investors over trading disclosed on November 18 by Commonwealth Bank of Australia, the ultimate owner of the trust's management company, Kiwi Income Property Ltd.

The trading took place up to November 15 and, on November 22, the trust announced a 15 per cent increase in after-tax profit for the half-year and projected a 5 per cent increase in dividend for the year.

Angus McNaughton, chief executive of Kiwi Income Property Ltd, said he believed the investigation related to units bought by the life assurance arm of CBA, Colonial Mutual Life Assurance.

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