By Chris Hutching
Friday 14th September 2001 |
Text too small? |
The chief executive of the Investment Savings and Insurance Association, Vance Arkinstall, said the move arose from the globalisation of investments and particularly affected fund managers with assets overseas and in the US.
"It's a temporary situation but how can fund managers value investments when markets are closed.
"This is a move some managers must take to protect the interests of investors but at the same time they must work within the trust deeds that govern funds. We're trying to provide some comfort to investors who needn't be worried because it's a temporary situation," Mr Arkinstall said.
"Although it's far too soon to make conclusions it appears the New Zealand market has held up reasonably well."
Perversely, a fall in investor confidence may see a flight of capital to regional markets.
"In light of the terrible events of last night several ISI member fund managers have suspended purchases and redemptions of the units in managed funds as a result of the impact on financial markets and the uncertainty resulting from the closure of the US markets."
"Obviously, the decision is the decision of each company and would be based on the terms of the relevant trust deed for each fund, and the extent to which each particular fund has been affected by the consequences of events in the US."
Funds managers announced transactions were suspended in the following funds:
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