Forum Archive Index - August 2001

[Morton John <John.Morton@tetrapak.com>]

A good post on equity risks and returns.

As a non-resident expat Kiwi, I've held a portfolio of NZ Shares and a
portfolio of interest bearing Capital Notes for the last 8 or 9  years. I've
been "burnt" on Skellerup corporate bonds - left only with a handful of
Viking Industry shares - otherwise I've enjoyed the stable and regular
yields.

Seems to me that the Approved Issuer Levy arrangement - where a non-resident
pays only a 2% levy on the interest on many fixed interest investments -
might narrow the gap between "higher" returns on shares (capital plus
dividends) subject to witholding taxes and the yield on corporate bonds
subject only to the AIL. This must make fixed interest more attractive to
offshore investors?

Questions:

a)  Is there any website that gives current values of NZ corporate bonds etc
and what is available "on market" for fixed interest investors.

b)  Is there a way to buy / sell NZ Corporate Bonds (or other NZ fixed
interest) directly on-line? (Not over the phone through a broker).

c)  The GPG offer (announced today) sounds attractive. Any way of getting a
slice of this issue without being a preferred client of some broker? (In the
past I've bought "on market" and had to pay brokerage and got a lower
effective interest yield by paying a premium.)

Thanks

JEM



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