Page 7 Advertisements Column 3

Ashburton Guardian, Volume 54, Issue 191, 26 May 1934, Page 7

mmm, WMMWWm, eiOTi A TRUST OF 1 tmWA mm Opinions of some EconomistsA' “1 N examination of the lists of British Investment Trust reveals that in June 1931, for every £IOO originally invested in forty different Trusts—£24l, or a profit of 141% could be obtained,on the London Stock Exchange, while the average rate of dividend mum payable on the shares was 16.8%. THE INVESTMENT EXECUTIVE TRUST OF NEW ZEALAND LIMITED is modelled upon the most approved lines of the best British Investment Trusts. Its operations permit of scientific diversification of investments and offers expert advice on group investment. Following are printed some opinions of unquestionably able economists:— The “Financial Times,” "London, June 19th, 1929:“It is difficult to imagine a combination of circumstances that can seriously prejudice the almost impregnable position attained by the old-established Investment Trust Companies. It is obvious that investments may go wrong at times, but the possession of a large number of varied securities is a very different matter from that of the case of the private investor, who probably has neither the capital, time nor experience to enable him to spread his risk sufficiently to help him fully to recoup any loss he may sustain in any particular industry or country. The past few years have witnessed the formation of a great number of new Investment Trust Companies, not only in this country, but also in various other parts of the world, especially in the United States of America, where the movement has made enormous strides. It is not surprising therefore, to find the old-established EnglishTrustCompanies keeping pace by fairly regularly increasing their capital with further issues of Debenture Stocks and by Shares convertible, when fully paid, into Preference and Ordinary Stocks. These Shares, usually issued to existing Ordinary Stockholders either as a bonus or on bonus terms, represents a substantial windfall for the holders and accounts to some extent for the persistent demand and scarceness of the supply of these Ordinary Stocks in the market. The Debenture and Preference Stocks of the best of the established Investment Trust Companies can to all intents and purposes be regarded as “gilt-edged,” and at approximate current prices give a most satisfactory yield for such highclass securities.” “Harper's Magazine April, 1929:“THE INVESTMENT TRUST PROPERLY ORGANISED AND PRUDENTLY MANAGED, CAN RENDER A SERVICE TO THE INVESTING PUBLIC THAT CAN BE RENDERED BY NO OTHER TYPE OF ORGANISATION. The Investment Trust concentrates its capital in the control of skilled investment experts, and employs it for the purchase of sound securities which deserve support, which are really contributing to our modern civilisation, and which in the great majority of cases reward handsomely those who show confidence in them. One of our prominent periodicals says:— “It is probable that never before in history has the stock buying public been invited to participate in a, new development in which I it has so little chance of losing and such a good chance of * making money as at the offering prices of Investment Trust Securities.” There can be no question that the Investment Trust idea is an excellent one and nobly deserving of popularity; in no other way can the laymen so easily secure the services of experts to do his investing for him.” The “Financial World ” London, November 18th, 1930: “One may go so far as to say that the Stocks of properly-conducted Investment Trust Companies have a higher ratio of security than even British Government Loans.” The “Financial World ” JanUary 10 th, 1931: “Investment Trusts have deservedly become popular with the investor, because in addition to giving greater security for capital than industrial undertakings can possibly achieve, they hold out the prospect of steadily increasing dividends and consequent capital appreciation. This class of security came successfully through the depreciation in values caused, by the Great War. In few cases were dividends reduced, and in those cases, it was more from prudence than from actual necessity; while the old rates were soon restored. The old-established Trusts are to-day in many cases paying appreciably higher dividends than in pre-war days and their Ordinary Stocks now stand at prices which would then have been considered fantastic. Probably the most authoritative pronouncement on the value of Investment Trusts is contained in the Report of the Liberal Industrial Enquiry Committee on Britain’s Industrial Future.” THE LIBERAL INDUSTRIAL ENQUIRY COMMITTEE ON BRITAIN’S INDUSTRIAL FUTURE RECOMMENDS: “The best form of investment for the small investor is in a soundly managed Investment Trust, which enables him to distribute the risks on his small savings over a widevariety of concerns, so as to get a better return than in Trustee Securities or Savings Banks. He may also hope for some capital appreciation, owing to the wise buying and selling of securities by the Directors. In short, through an Investment Trust the small investor is to some extent put on a level w-ith the big investor. Our conclusions then ade:— (1) That a great expansion of popular saving and investment is necessary in the national interest; that this involves a wider diffusion of the banking habit and the encouragement of popular investment: (a) By employee-share-purchase under proper safeguards; (b) By customer-share-purchase in public utilities; (c) BY THE ENCOURAGEMENT OF INVESTMENT TRUSTS.” THE INVESTMENT EXECUTIVE TRUST OF NEW ZEALAND LIMITED • Full information of the Trust’s activities, as contained in its Prospectus registered under the new Companies’ Act, 1933, will be immediately supplied on application to any of the following addresses: HEAD OFFICE: Yorkshire House, Sliortland Street, AUCKLAND, BRANCH OFFICES: National Bank Buildings, Featherston Street, WELLINGTON . Commerce Buildings, Hereford Street, CHRISTCHURCH. Queen’s Buildings, Princes Street, DUNEDIN. ft II m m 54.1 T. 1/6/34

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