Brian Gaynor's Milford Aggressive Fund, which has $70 million under management, has taken a 16.92% stake in NZX-listed Salvus Strategic Investments.The acquisition, in a private off-market transaction disclosed to the NZX today, consisted of 3.4 million s
Brian Gaynor’s Milford Aggressive Fund, which has $70 million under management, has taken a 16.92% stake in NZX-listed Salvus Strategic Investments.
The acquisition, in a private off-market transaction disclosed to the NZX today, consisted of 3.4 million shares priced at 70c-a-share.
Milford bought the shares from Hubbard Churcher Trust Management, whose founder Allan Hubbard is currently battling to recapitalise his Timaru-based finance company South Canterbury Finance.
Milford’s aggressive fund is a KiwiSaver product managed by Mr Gaynor, a business analyst and media commentator. The fund has achieved a 32.2% return to December 2009.
The investment in Salvus, also a fund manager, represents 3.3% of Milford’s current net asset value.
Mr Gaynor was not immediately available for comment but said in a statement that the purchase from Hubbard Churcher represented good value for the Aggressive Fund.
The purchase price was 29% below Salvus’ most recent Net Asset Value of 98.65c-a-share, he said.
The wider Milford Asset Management company was recently appointed as a manager for the NZ Superannuation Fund.
Milford has over $400 million of funds under management.
Salvus was set up to invest in a diversified portfolio of securities in the New Zealand smaller company sector.
Its top ten holdings include:
Freightways: 13.8%
New Zealand Oil & Gas: 12.2%
Pumpkin Patch: 12.2%
Methven: 10.6%
Abano Healthcare Group: 10.0%
Energy World Corporation: 6.0%
NZX: 6.0%
Comvita: 3.6%
Fisher & Paykel Appliances: 3.4%
Rakon: 2.9%
Cash: 17.2%
