CBL Insurance IPO

[Lola]

And they still have PEB - same deal, invest, underwrite, buy more to support the sp etc etc.

Harbours shareholders include FNZ I’m pretty sure. They clipped a few nice tickets on CBL crossings.
It will be very interesting to have Mr CJLees take on all this as in his view often published FNZ are the bestest in the industry ever, other than his own of course.

[blackcap]

It will be very interesting to have Mr CJLees take on all this as in his view often published FNZ are the bestest in the industry ever, other than his own of course.

That wouldn't have anything to do with his boy would it?

[Lola]

That wouldn't have anything to do with his boy would it?

Hadn’t thought of that.

[leesal]

If they paid out the money whilst being insolvent.... directors are liable.

52 Board may authorise distributions
(1)
The board of a company that is satisfied on reasonable grounds that the company will, immediately after the distribution, satisfy the solvency test may, subject to section 53 and the constitution of the company, authorise a distribution by the company at a time, and of an amount, and to any shareholders it thinks fit.
(2)The directors who vote in favour of a distribution must sign a certificate stating that, in their opinion, the company will, immediately after the distribution, satisfy the solvency test and the grounds for that opinion.
(5)Every director who fails to comply with subsection (2) commits an offence and is liable on conviction to the penalty set out in section 373(1).

But the penalties are pitiful

Penalty for failure to comply with Act
(1)
A person convicted of an offence against any of the following sections of this Act is liable to a fine not exceeding $5,000:

They could potentially be up for wreckless trading which carries a fine of up to $10,000

Every announcement is getting worse and worse, and shows a complete lack of integrity of the members of the board. From allowing their mates to sell down a year back on the quiet, dropping policy holders in the deep end by not adequately providing for claims capital (including lack of reinsurance arrangements), to quickly dispatching funds to their favoured creditor (or should this read rathole).

NZX and RBNZ have a lot to answer for, to permit this lack of transperancy.

Disclosure - I bought a small holding in 2016 after attending a Northern Club event - an evening with Peter Harris. Now stands as my most expensive dinner invitation.

[Marilyn Munroe]

Disclosure - I bought a small holding in 2016 after attending a Northern Club event - an evening with Peter Harris. Now stands as my most expensive dinner invitation.

https://www.fbi.gov/news/stories/bew...affinity-fraud

Boop boop de do
Marilyn

[Balance]

There rationale
https://www.harbourasset.co.nz/wp-co...te-1-March.pdf

Reading through the update, I must be missing or misreading something :

"The investment in CBL has been a relatively small part of our equity funds (not in the top 10 holdings)."

https://www.nzx.com/announcements/312804

According to the last SPH, Harbour owned 16.966m shares in CBL.

Using sp of $3.04 as at 31 Dec 2017, valuation = $51.58m

Their Australasian Equity Fund had $230m, NZ Equity Fund had $140m and other equity related funds (Income & Beta) ahd $110m = $480m in total.

$51.58m on $480m > 10%

Something smells.

[minimoke]

There rationale
https://www.harbourasset.co.nz/wp-co...te-1-March.pdf

Good to see they avoid Sky TV. And people pay for this funds management!

[minimoke]

Reading through the update, I must be missing or misreading something :

"The investment in CBL has been a relatively small part of our equity funds (not in the top 10 holdings)."

https://www.nzx.com/announcements/312804

According to the last SPH, Harbour owned 16.966m shares in CBL.

Using sp of $3.04 as at 31 Dec 2017, valuation = $51.58m

Their Australasian Equity Fund had $230m, NZ Equity Fund had $140m and other equity related funds (Income & Beta) ahd $110m = $480m in total.

$51.58m on $480m > 10%

Something smells.

What happens if you use $0.88 as the SP, or even $0.00?

[D. Fender]

Reading through the update, I must be missing or misreading something :

"The investment in CBL has been a relatively small part of our equity funds (not in the top 10 holdings)."

https://www.nzx.com/announcements/312804

According to the last SPH, Harbour owned 16.966m shares in CBL.

Using sp of $3.04 as at 31 Dec 2017, valuation = $51.58m

Their Australasian Equity Fund had $230m, NZ Equity Fund had $140m and other equity related funds (Income & Beta) ahd $110m = $480m in total.

$51.58m on $480m > 10%

Something smells.

I think Harbour actually manages well over $2bn - the retail funds are not the whole story, they manage lots of wholesale money too. But the update they gave is a little vague. Why not just tell clients exactly what percentage of each fund CBL is/was? Of more concern is the fact that they are obviously letting investors buy and sell units in the funds based on their 'estimated' price of 88 cents for CBL. If CBL's equity turns out to be worthless, then investors buying into Harbour's funds are paying too much for each unit. Investors selling units are also receiving too much, to the detriment of investors staying in the fund.

[BlackPeter]

Reading through the update, I must be missing or misreading something :

"The investment in CBL has been a relatively small part of our equity funds (not in the top 10 holdings)."

https://www.nzx.com/announcements/312804

According to the last SPH, Harbour owned 16.966m shares in CBL.

Using sp of $3.04 as at 31 Dec 2017, valuation = $51.58m

Their Australasian Equity Fund had $230m, NZ Equity Fund had $140m and other equity related funds (Income & Beta) ahd $110m = $480m in total.

$51.58m on $480m > 10%

Something smells.

They probably applied already the new valuation