Warning to investors

By LES WATKINS - Rodney Times

Hard-working sparkie Mike Hayles of Orewa was shocked when told ill-health would mean an early retirement.

"That was nine years ago when I was nearing 50," he says.

"I was so crook that holding down a job was becoming impossible."

But the electrician who started work at 18 and had no dependants thought his financial future was secure because he'd always been careful with cash and he had a number of investments, including two properties, one bringing in rent.

"Then I made a decision that's cost me dearly," he says.

"I sold a house after hearing advice in a radio talk by a Money Managers boss.

"Money Managers in Orewa invested the proceeds. The adviser convinced me the returns would be better and because of his expertise that my capital would be safe," he says.

"I parted with more than $330,000 and so far have completely lost $177,000.

"Some of my money has been recovered but they're now saying they can't get buyers for the assets they bought and my loss could go higher."

Despite his losses Mr Hayles feels worse for others.

"I'm luckier than a hell of a lot of others who've been hit harder and left with nothing."

He believes he and others were misled about the risks involved and he's promoting a campaign mounted by the Money Managers Action Group, started last year by EUFA - Exposing Unacceptable Financial Activities.

"Over $200 million has been lost without explanation," says co-ordinator Suzanne Edmonds.

"We formed this group to research the company's history and to lobby for redress."

She says investors she describes as "very conservative" did not realise their nest-eggs were going into "entirely inappropriate" projects, including the used-car market, property deals and a troubled geothermal project.

"The financial crisis has left a $6 billion hole in people's retirement savings and our organisation intends to expose those responsible for the finance company collapses and the crisis that caused."

Other investors have detailed their experiences at www.moneymanagersactiongroup.org.nz.

Mac wrote: "I have lost $40,000 investing with Money Managers. I was given wrong advice by my adviser."

Paul Edwards said he and his wife lost everything. "We put years of savings into the hands of people who said they cared, wanted to do the best by us and help secure our futures.

"Truth be told they only care for themselves."

A widow aged 70-plus wrote: "I try not to dwell on the years of hard work and going without just to see so much wiped out with the stroke of a pen."

Mr Hayles says the group is growing.

"So many others have been hit that we are growing fast, and that's good because the stronger we are the more chance we have of getting a fairer deal."

Repeated attempts to contact Money Managers' media spokesman Shaun Anastafi for comment were unsuccessful.

- Older people will get more access to investment advice thanks to a new Retirement Commission policy. The commission has made information on investment choice available through groups such as Probus and Seniornet.

Money Managers

- Money Managers is a nationwide network including franchise-holders that has been renamed MMG Advisory Partners. A group of new owners took over in June 2008, a year in which one of its key investment trusts alone lost $59.7 million.

- The original name still features in phonebooks and on the internet. The Money Managers website says: "Our expert advisers can help with investment, future planning and insurance to ensure you have financial security at all stages of life."