BY MARY HOLM
Q: With an elderly mother's income to maximise, I was interested to read your advice (June 22) to the person with $150,000 to invest.
The paragraph relating to debentures was of particular interest because it mentioned South Canterbury Finance, recently lauded to my husband by an elderly client, but
not known to us.
The other unknown was "UDS".
Can you please advise what company this is?
A: To put others in the picture, debentures are like term deposits, but are issued by finance companies.
Because they are riskier, returns can be higher than on term deposits.
I put your question to Cam Watson of sharebrokers ABN Amro Craigs, who made the suggestions in the first place.
He said, firstly, that UDS should have read UDC. Sorry about that.
He added, "We selected these two companies because they are two of the largest finance companies in New Zealand.
"UDC is owned by the ANZ and has the same credit rating, which attracts us.
"South Canterbury Finance has been around for many years [nearly 50 I believe] and has $360 million in assets."
* Mary Holm is a freelance journalist and author of Investing Made Simple. Send questions for her to Money Matters, Business Herald, PO Box 32, Auckland; or maryh@pl.net
Letters should not exceed 200 words. We won't publish your name, but please provide it and a (preferably daytime) phone number. Sorry, but Mary cannot answer all questions, correspond directly with readers, or give financial advice outside the column.
