Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Frozen Guardian Trust fund stings ex-owner Suncorp for $4.9M

Frozen Guardian Trust fund stings ex-owner Suncorp for $4.9M

By Paul McBeth

July 17 (BusinessDesk) - Australian insurer Suncorp Group forked out an indemnity payment to New Zealand Guardian Trust more than three years after selling its former subsidiary at a $40 million loss.

The $4.9 million payment on April 29 of this year covered the loss incurred by the Guardian CashPlus Mortgage Unit Fund in the final partial capital repayment from the Guardian Mortgage Fund, which was frozen in 2008 as the global financial crisis took hold, under an indemnity provision, Guardian Trust said in notes to its latest financial statements.

At the time of the freeze, the CashPlus Fund was 35 percent invested in the mortgage fund, which suspended withdrawals of some $249 million in funds to some 3,700 investors. Guardian Trust guaranteed certain interest and principal losses relating to the fund, and was in turn indemnified by a unit of Suncorp. the statements show.

Guardian Trust completed the mortgage fund repayments three weeks after switching to its third owner since Suncorp sold the business in 2011. The trustee was sold to Complectus, a unit of Perpetual Trust-related Bath Street Capital and two funds managed by Milford Asset Management, on April 7 for $68.5 million. Suncorp sold it for A$42 million to The Trust Co, which was itself taken over last year by ASX-listed fund manager Perpetual Ltd.

The financial statements show Perpetual pulled out a $4.4 million dividend from Guardian Trust three days before the sale to Complectus, with dividends of $2.8 million and $3 million for the 2014 and 2013 financial years paid to previous owner Trust Co.

The trustee company reported profit of $4.9 million in the 12 months ended Feb. 28 from $3.6 million a year earlier, on a 5.4 percent increase in revenue to $37.4 million. Net operating cash flow rose to $5.9 million from $3.4 million in the 2013 year, leaving Guardian Trust with $7 million in cash and equivalents as at Feb. 28, and before the post-balance date dividend payment to Perpetual.

As at Feb. 28, Guardian Trust had $2.47 billion of assets under administration and $90.49 billion of securities supervised. The seven group investment funds it manages had a total value of $166 million at the Feb. 28 balance date.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Media: Julian Wilcox Leaves Māori TV

Māori Television has confirmed the resignation of Head of News and Production Julian Wilcox. Mr Maxwell acknowledged Mr Wilcox’s significant contribution to Māori Television since joining the organisation in 2004. More>>

ALSO:

Genetics: New Heat Tolerant Cow Developed

Hamilton, New Zealand-based Dairy Solutionz Ltd has led an expert genetics team to develop a new dairy cow breed conditioned to thrive in lower elevation tropical climates and achieve high milk production under heat stress. More>>

Fractals: Thousands More Business Cards Needed To Build Giant Sponge

New Zealand is taking part in a global event this weekend to build a Menger Sponge using 15 million business cards but local organisers say they are thousands of business cards short. More>>

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news