Firm expands to Chch Advice for investors

Press, 31 January 1989, Page 25

Firm expands to Chch Advice for investors

Any financial firm setting up in Christchurch at present could be considered either foolhardy or very brave. John McDermott, the South Island manager of Farrow Corporation would probably claim that his organisation did not fit into either category.

Farrow Corporation N.Z., Ltd, was established with the opening of an Auckland office in September 1987, about the time of the sharemarket crash.

The parent Australian company was founded during the 1920 s by Mr R. G. Farrow in an effort to provide affordable housing finance for young married people. ■Today, Farrow Group assets exceed sAust2 billion.

In 1987 the Farrow Group was planning to expand into New Zealand and did so regardless of the sharemarket crash. The recently opened

Christchurch office, located in a refurbished office in Cathedral Square (previously a camera shop), extends the financial services to the South Island. The Farrow Group is strongly committed to mortgage lending and has no intention of changing its investment philosophy. “Although we are not operating in New Zealand as a building society, our programme is similar to a traditional building society,” Mr McDermott says.

At present, the Farrow Corporation is offering two investment opportunities for Christchurch people. They are for debenturev stock and guaranteed unsecured de-

posits. Debenture stock is offering an interest rate of 14.5 per cent over periods of one to thirtysix months. The unsecured deposits offer a

slightly higher 15.5 per cent over the same period. “With the possibility of interest rates falling, these rates over the longer term of 36 months are very attractive,” Mr McDermott says.

A prospectus is available from the new Christchurch office. Mr McDermott has had considerable financial experience in New Zealand and joined the Farrow Corporation to set up the Christchurch operation. He is assisted by Peter Talbot who is the retail funding representative.

As an indication of the Australian parent company’s confidence in its New Zealand operation, the paid up capital of Farrow Corporation N.Z., Ltd, was recently increased from six to 20 million dollars. This increase will provide a sound base for future growth.

Personal investing courses have been offered through the Adult Education Programme at several Christchurch high schools since February 1987, and now, as their popularity increases, more schools are offering these courses. This term, seven high schools will be offering . personal investing courses. According to Charles Drace, financial broker with Southlink Securities, and the tutor for most of the courses, a feature of these courses is the impartiality of advice. “We make a point of not mentioning any particular products or companies, but do discuss all the investment options available and how they fit into an individual’s personal investment programme. “By the end of the

course participants will know what investments are best to meet their own goals and will not be at the mercy of institutions or salespeople pushing only their own products. “After the scare of the sharemarket crash, people are beginning to realise we are now experiencing a much better environment for investing. If they stick to the basic principles like spreading their investments and keeping an eye on retirement needs, they can really do well.” Topics covered include: How goal setting will keep you on the right track; The problems we will face and how to overcome them; What insurance is needed and how to get the best rates; Understanding the sharemarket and how it works; How to make sure you’ll retire in comfort and dignity; Beating inflation; Eliminating risk by spreading investments; Getting high returns without risk, and investing without tax or super surcharge. Personal investing courses run for five weeks, one night per week, in the evenings. Most schools charge $lO or $l5 dollars for the full course. The scheduled dates are as follows: Feb. 6, Mondays at Cashmere High School, Tel. 39-129; Feb. 7, Tuesdays at Hillmorton High School, Tel. 385-119; Feb 8, Wednesdays at Kaiapoi High School, Tel. 276-129; Feb. 13, Mondays at Burnside High School, Tel. 588-383; Mar. 20, Mondays at Aranui High School, Tel. 887-083; Mar. 21, Tuesdays at Mairehau High School, Tel. 853-145; Dates to be set for Lincoln High School, Tel. 252-121. Tutors for the course are Charles Drace, Chris Johnson and Mike Macfarlane of Southlink Securities and Tim Preston of Hamilton, Hindin and Greene.