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

 

Statistics: Dairy And Travel Still Our Largest Export Earners

New Zealand earned $2.3 billion more from exports than we spent on imports during the year ended June 2015... total exports of goods and services were $67.5 billion, while total imports were $65.1 billion. More>>

ALSO:

Approval: Air New Zealand And Air China Launch New Alliance Route

Air New Zealand and Air China have today launched joint sales for a new daily direct service between Auckland and Beijing after receiving approval from New Zealand Minister of Transport Hon Simon Bridges to form a strategic alliance. More>>

ALSO:

Money Trading: FX Trader Jin Yuan Finance Warned Over Lack Of Monitoring

Jin Yuan Finance, an Auckland-based foreign exchange trader, has been warned over its lack of anti-money laundering processes in place in the first public notification by the Department of Internal Affairs. More>>

ALSO:

Auckland Surge, Possible Peak: House Values Accelerate At Fastest Annual Pace In 8 Years

New Zealand residential property values rose at their fastest annual pace in eight years in August, pushed higher by overflowing demand in Auckland, which is showing signs speculators think it has reached its peak, according to Quotable Value. More>>

ALSO:

Cash Money: Reserve Bank Launches New $5 And $10 Banknotes

The $5 and $10 final banknotes were revealed at an event at the Bank in Wellington, and will start to be released from mid-October 2015. More>>

ALSO:

Truck Sales Booted: Commerce Commission Files Charges Against Mobile Trader

The Commerce Commission has filed charges against a mobile trader, or truck shop operator, claiming he obtained money from customers by deception and never intended to supply them with the goods they paid for. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news