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ACC Influence on Stockmarket Liquidity a concern to private investors

#1 User is offline   Remedy 

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Posted 18 April 2011 - 05:39 PM

http://shareinvestor...-liquidity.html
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#2 User is offline   keentohelp 

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Posted 18 April 2011 - 08:05 PM

View PostRemedy, on 18 April 2011 - 05:39 PM, said:



Whatever the politics of this post it reflects what I have already posted from time to time (and contradicts what those on accforum who are economically illiterate post from time to time).

Whatever its treatment of claimants ACC is a first class investor on the stock market.

A wise person would look to what they own and follow suit.

Do be aware that that wise investor will diversify - most especially given that ACC is clearly investing to make significant capital gains (and good on them for that we will all benefit) hence it is possible any one share or share class may similarly make capital losses.

This thread deserves a comment – well done ACC.
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#3 User is offline   hukildaspida 

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Posted 18 April 2011 - 11:42 PM

View Postkeentohelp, on 18 April 2011 - 08:05 PM, said:

Whatever the politics of this post it reflects what I have already posted from time to time (and contradicts what those on accforum who are economically illiterate post from time to time).

Whatever its treatment of claimants ACC is a first class investor on the stock market.

A wise person would look to what they own and follow suit.

Do be aware that that wise investor will diversify - most especially given that ACC is clearly investing to make significant capital gains (and good on them for that we will all benefit) hence it is possible any one share or share class may similarly make capital losses.

This thread deserves a comment – well done ACC.



Beware of half-truths - you may get the wrong half!

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#4 User is offline   hukildaspida 

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Posted 18 April 2011 - 11:56 PM

View PostRemedy, on 18 April 2011 - 05:39 PM, said:




"He who builds to every man's advice will have a crooked house."

Monies paid to http://www.acc.co.nz/ in the form of Levies are for helping injured people, not to gamble on the Stockmarket.

Nicholas BAGNALL should stop being so full of self praise.

Perhaps he has a "GAMBLING ADDICTION" that he needs help with & has never read the reason why Accident Compensation Corporation & it's various names it has been known as, was established.

His premium's no doubt would be at the lower end of the scale as may we assume his employment is sedentary based, unlike those whom are the backbone of the New Zealand economy.

He should go out & work as a Dairy Farmer, Shearer, meatworker, forestry employee or nurse to see what real work is & live with the consequences of some of the aforementioned who have injuries & struggles they face.

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#5 User is offline   doppelganger 

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Posted 19 April 2011 - 12:59 PM

you wait until ACC is forced to sell those shares on the stock market.

Looked at what happened in the USA when insurance giants had to do just that

Prices dropped and then there was no enough money to go around.

Invest in the asserts the people already own would be a better prepossession.

The People own electricity generation roads forestry (less what nick gave to the Mario's) at one stage we also owned farms, telecomunations, Contracting company (MOW) and several others. Now we only own debt which was currated by the same type who are investigating in the share market.
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#6 User is offline   hukildaspida 

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Posted 19 May 2014 - 04:28 PM

What stakes & percentage does http://www.acc.co.nz now have in the Sharemarket?

Tuesday, March 29, 2011
ACC Influence on Stockmarket Liquidity a Concern to Private Investors


I am a little worried about the Accident Compensation Corporation having such an influence, in terms of sharemarket liquidity, on the local NZX.

It has been buying up significant stakes in several NZX listed companies and now owns over 4% of the free-float of the market:

The Accident Compensation Corp now has significant stakes in 28 NZX-listed stocks, cementing is position as the biggest player in the market.

ACC manages some $13 billion of assets and had about 10 per cent of its reserves in New Zealand equities in 2010. So far this month it has declared holdings of at least 5 per cent in Argosy Property Trust, Abano Healthcare and Pumpkin Patch, while adding to its stake in Nuplex Industries. In February it emerged as a holder of DNZ Property Fund, Goodman Property Trust, Mainfreight, Tourism Holdings, Kermadec Property Fund and Restaurant Brands.


"New Zealand equities are cheaper than they once were but you can say the same thing about global equities," said Nicholas Bagnall, the state-owned accident insurer's investment manager.

He wouldn't be drawn on whether the disclosures point to a bet on a revival in New Zealand's economy, which the International Monetary Fund sees growing just 1 per cent in calendar 2011 before accelerating to 4 per cent in 2012, helped by the rebuild after the Christchurch earthquake. Figures this week showed the economy narrowly avoided a double-dip recession last year.

ACC now owns more than 4 per cent of the free float of the New Zealand stock market, giving it influence over liquidity in some of the nation's biggest listed companies as well as smaller-cap firms.

"We're effectively enhanced our returns by being a seller of liquidity to the market," Bagnall says. "It works for us and it works for the market as well."

The corporation's investment mandate is to ensure it can cover the long duration of claims liabilities. Its allocations between asset classes tend to be "riskier than the minimum possible risk position," according to ACC's 2010 financial condition report.
It may not seem like a problem to the uninitiated but the New Zealand Stockmarket already suffers from a lack of liquidity and while this obviously will have positive effects as the ACC is buying, it will have very negative effects when they sell.

The ACC has a short term relationship to our market and its main pursuit is to extract the best returns for its investments as possible - as we all do - but that goes against the sort of long-term investment that the NZX has been pushing for the last 10 years.

In short the size of ACCs stake in the NZX is bad for the average investor in the long term because they are able to manipulate the market because of that size.

What we need from this taxpayer funded Government Department is a upper cap - I suggest 5% - on what they are allowed to invest in terms of overall investment in the stockmarket.

It is our money after all and using it to compete against local investors to their detriment is clearly unwise at best and reckless at worst.

It keeps other private investors from using their own money and building up stakes in companies because the ACC are artificially competing with them.

Real competition still remains in the private realm not the bureaucratic one.

Disc I own, PPL & MFT shares in the Share Investor Portfolio.
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#7 User is offline   hukildaspida 

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Posted 19 May 2014 - 04:46 PM

Is Matthew Cunliffe, that has signed the following document related to David Cunliffe, Labour MP?

Please click on the link to read the full document


https://www.nzx.com/...ncements/248353


SSH Notice - Blair Cooper
12:57pm, 18 Mar 2014 | SSH

Disclosure of movement of 1% or more in substantial holding or change in nature of relevant interest or both
Sections 23 and 24, Securities Markets Act 1988

Relevant event being disclosed: Movement of 1% or more
Date of relevant event: 14 March 2014
To: NZX Limited
And: Infratil Limited
Date this disclosure made: 18 March 2014
Date last disclosure made: 31 March 2010

Substantial security holder(s) giving disclosure
Name(s): Blair Cooper
Contact details: Matthew Cunliffe +64 4 816 5743 [email protected]


Additional information
Blair Cooper is an employee and portfolio manager or equity analyst for ACC. Under current ACC investment policies, he has the discretion to exercise control over some or all the rights to vote and acquisition or disposal of some or all of the securities of which ACC is the beneficial owner
Address(es) of substantial security holder(s): ACC : Justice Centre, 19 Aitken Street, PO Box 242, Wellington 6140.
Name of any other person believed to have given, or believed to be required to give, a disclosure under the Act in relation to the securities to which this disclosure relates: n/a

Declaration
I, Matthew Cunliffe, declare that, to the best of my knowledge and belief, the information contained in this disclosure is correct and that I am duly authorised to make this disclosure by all persons for whom it is made.

Attachments

SSH Notice - Blair Cooper

Attachments are available on nzx.com for six months from the date of release. NZX offers professional products for searching historic company announcements. Please email [email protected] for a free trial.
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