KEY POINTS:
The decision to rename Viking Capital and switch from an aggressive approach to a conservative one is a reflection of the change in market conditions, says managing director Brent King.
The NZAX-listed investment company, which was floated in 2006 as an aggressive investment vehicle, yesterday announced it would drop the Viking name and call itself the Investment Research Group from August 25.
At the same time, King will be replaced as chairman by director and former Finance Minister Bill Birch.
King said the name change was designed to show its business was now focused on the financial advisory sector. "That is where we will be concentrating."
When Viking was launched, its prospectus and name clearly indicated a very aggressive approach that was "appropriate at that time", he said.
But the market was no longer looking for that. "I don't think the market is as focused on aggression now. It's now far more about being conservative and building the business. Going into a bio-tech company was quite a risk. It's not a market to do that."
Viking Capital had some early success when it sold the 42 Below vodka business to Bacardi but in recent months its other investments have turned sour.
In May start-up bio-tech company ICP Bio, in which Viking had a 20 per cent stake, went into receivership and in June its other main investment, finance company Dorchester Pacific, froze debenture holder redemptions and announced it would look at a repayment plan.
At one point Viking held up to 10 per cent of Dorchester but had been gradually selling down its stake in the business with King, who was once managing director of Dorchester, openly voicing disapproval of the company's management and processes.
Viking bought David McEwen's Investment Research Group in April last year and then added to its investment in the sector through thepurchase of Dorchester's advisoryarm Equity Investment Advisers in May.
Despite pending legislative changes and negative fallout associated with finance company troubles, King said he saw the sector as an area of great opportunity.
"Investors have received substandard advice, there is an opportunity now for a company with a clean slate and no links to in-house products to do well."
