Questionable Dealings Highlighted By Report
QUESTIONABLE DEALINGS HIGHLIGHTED BY REPORT
New Zealand's largest property investment company, AMP Asset Management (AMPAM), today welcomed the findings of the Securities Commission report on property syndicates that was released late last week.
"There are many reputable property syndicators in the marketplace, but there are also a number of less reputable companies whose dealings have impacted on the credibility of the entire property investment sector," said AMPAM's acting head of property, Anthony Beverley.
"The Securities Commission report highlighted the fact that some property syndicators fudge their rates of return, use inconsistent and unclear language, and market the syndicates as being similar to fixed interest investments."
The report also found that some promoters did not clearly state all the qualifications relating to rates of return, which could confuse people as to what income to expect.
"Overall, we feel there is a lack of understanding by retail investors of the nature of property syndicates, their limited liquidity and the way they generate income. This belief is backed up the feedback we get from our retail clients as well as the findings of this report."
"We are particularly pleased to note that the Securities Commission report concludes with a promise to be more active in drawing attention to unclear offer documents and taking action in appropriate cases."
"At the end of the day actions will carry the most weight."
AMP Asset Management is New Zealand's largest property investment company managing a total property portfolio of almost $1.5 billion. It was also the recipient of the IPAC 1999/2000 fund manager of the year award.