Telecom spindoctor floats 'high-risk' investment firm

By Nick Stride

Friday 10th November 2000

Share investment company Widespread Portfolios, a company linked to Telecom media relations executive Linda Sanders, is seeking $500,000 from investors in an initial public offering.

WPL, which will trade on the unofficial Unlisted Securities Market made by Stock Exchange member firms, is chaired by Ms Sanders, a former business editor of Wellington's Evening Post. Its 46 current shareholders include Tower chairman Colin Beyer.

The company was formed in 1989 and invests in "relatively high-risk, second-line stocks both locally and internationally."

Its current shareholdings are Tag Pacific, Telemedia Group, and Olympus Pacific Mineral.

The prospectus says the average annual growth in asset backing since formation has been 21.05%. However, an accompanying graph shows net assets rose by only around 50% until March last year, after which they took off. The gain is now around 650%.

Investment management is supplied by Ms Sanders' partner, Chris Castle, whose Sandcastle Trust owns 19% of the company, and Jill Hatchwell, who owns 2.8%.

WPL reinvests all dividend income and capital gains and ha a no-debt policy. Shareholders' funds are 1.53 million and net assets at October 4 were $3 million.

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