THE INVESTMENT EXECUTIVE TRUST OF NEW ZEALAND, LTD.

Press, Volume LXX, Issue 21123, 26 March 1934, Page 13

THE INVESTMENT EXECUTIVE TRUST OF NEW ZEALAND, LTD.

I REPORT TO FIRST MOKT- | (i A(iK PERPETUAL IN CO.'ME I)EP»ENTURE-HOEDERS lioii hai.i'-m-:\k i:\dkd decem- , 15Kit 31, I!);;:'. * 1' 1 n■ Directors take pleasure in fie- J -i'iitiii'4 to Do benUtre-holders their Re- \ purl fur (he half-year ended December 1 i 31. 193:?, accompanied by the Auditor's i i Ccrtiticate which yives an analysis of i | tiio Trust's In vestments. | Previously. annual repons wore 1 issued as at December 31 in each year. In June of last year the Directors decided lo tix I he balancing date of tiie Consolidated Accounts al June ;jl> m ■ each year. The Debenture-holders' In--1 vestment income us: at December 31 in each year is now meoruorated in the . Annual Consolidated Balance-sheet and ; . Accounts, copies of which are dtsl tributed to Debenture-holders. The Revenue Accounts of 1 lie Trusi comprise interest received from De- ! ii.nlui'es, Gc a em nicnt Bonds. Corpora- I : in n Stocks, di\idt mis from Ordinary 1 | .aid Preference Shares in Banking, i ! Insurance and other Companies in addi- I ; lion to profits derived from Investment j ! and Exchange transactions. ' i The rates of interest payable on each 5 (Series, after making provision for \ Shareholders' proportion of profits and Deb-'ntui e-ho!ders' Reserve, are: "A" Sene- J.H bcnl tires . I ]i r, " ri(l A" Scries Debontlir< s -I I p.e. • Scries Debentures V pe. ":!nd M" Series: Debentures . . V p.c. The abo\e rates of inteiest are tree i of income tax. In the Report to Debcnt ure-liolders ; ; for the year endim: December 31, 1!I32, , 1 iheir attention was drawn I<> the pro- : \ isions of The National Ex nendil ure , Adjustment Act which would have the , etTeet of rediif'ini! 1 income from ; iliivi-rmncut and l.ocal Body Dehenlures, and we advise our "A" Series ' Debenture-holders thai in all probahil- . ity the interest on their Debentures j . would be lower for the current financial year than for the previous two ! ' years. I The National Expenditure Adjust- j tnent Act also affected the income from ! our "B" Series Investments, because | ■ of the statutory 20 per cent, reduction . on dividends from Preference Shares i and interest, received from Debentures. Owin.i; to the exceptionally wide! soread of Investment:; held by the j Tru.-t. income is being continually re- | ceived from dividends, interest, etc. i The Directors felt that. Debenture- | holders nii'.;ht prefer to have interim | interest paid quarterly instead of one i interim half-yearly payment. Three I interim cpiarterly payments of interest I . will consequently be made in future — j on lU:iy 31, August 31, and November ; 30 in each year. The final payment of | interest in each year ending December j 31, after meorporat int! all income from | New Zealand and Overseas Invest- j ments. will be paid, as usual, in the : following March. From the above table of interest rate--,. Debenture-holders will notice ( thai the income from the "Second B" Series for 'he period under review corresponds with income from the "B" , i Series , 'i'hoM' Do bent lire-holders who have j | fallen advantage ol' the premium upon j •heir original "B" Scries and re-in- ! vested the proceeds in the "Second B" I | Series, will receive approximately 77 ; per c. nt. on their original investment. ; The Directors have noticed that dnr- 1 I nu' the \ear a f; w of our Debenture- j ! holder.. have been trail:-ferrimj their j ! P> I 'cut in es at prices ! low their vahi-. While Debcnture- , holders may soil at any prices they ' ple.ee. we are of the opinion thai most let' sir'i sellim; has been due to pres- ! i-mie hnaiaht by interests which arc' onpi'-cd to th.e Trust. The prona- j randa is-iicti by our opponents rinrin;! j 1 'he pa.-l two Viais was of a very ques- i '•nn;ii>li' ■ h.nae'er and was, apparently, I prompted more by self-interest than i :n the interests of investors. Debenture- j . j holder'- « ho d of their Deben- j tun became of this surreptitious j proiia:;.inda mu-t ultimately regret While tiie security ottered lo an in-' ve-tor ai a well-conducted Investment j Tru-t r than lie can obtain , ■ iroin atiy other type i>f investment, the , ' income I- also, ;i- a rule, larger than | i.e .-an .secure from an indiviilual in- | ve 'men: This is due to the fact that j the Tru-t not only derives j| s nrotits j fiini mtero'' and dividends on its hives' ments. !>u: I rem taking advantage J of market t' net :ia! ion s. This factor, probably accounts for the misrepre- ! ■ enl a; n s imade by our opponents • . <•,•!;« i) the.\ siate that such profits are j mud out <-f Capital. : The Trust's stock-in-trade consists of j its Investiiti nts. When a mercantile i concern sells its imods at prices which j ill' '.' a net dilTcrcnee, say, of (i per | rem between t hi' cost price ami the i •.-ell iitit price afii r allowing for all ex- ; I pomes. and pays the surplus (i per cent. : j so its s liareln>lders in th.e form of ' j dividends, it cannot bo said that such i . a payment is made from Capital. The : Trust is in a similar position, except . that between the periods of purchase . and s.de it accumulates dividends and i uteres! in addition to the profits from 1 | investment transactions, j The security offered by The Invest- ; nient Executive Trust of New Zealand, 1 : l,ld„ to its Debt -nt n re-holders is a lirsl ; | mortnai'.e on fee securities held. This 1 I Trust cannot create any charge or bor- 1 ! row any mom y on a bank overdraft, 'or otherwise, on the .-ecuriG of InvostTh: ■ leatiire ol absolute 'ccuritv to 'tlm Debeiiture-liolder is a cardinal 111■ 11u■ iij m■ ~f The Investment Executive Trust of New Zealand. Limited. The Tni: t noes not claim that it will I • pay abnormally hi;:!', rates of interest, j : i>ijt if does claim thai, because nf the : : system on which it operates, it is in a J J position io make lari;er proiits than I i iuidertakurns which re!v on a moie re-',-t rioted -ource of incoiiie. | The Investnicnt Executive Trust of : i \'e»v Zealand, Limited, is (lie pioneer I j of Imestnient Trusts in the Dominion.) I The Trust system has been in votpae ! , in Great Britain for over fifty years, j ! and no method of investigating has yet i : be< n found which enables the small \ ; mvestor to obtain a share in such a : i larue mnriber of sound securities! i which, ns tin mdividuiil. it wovdd be | j iinp«issible lor him to secure. Morei over, main' of the securities of the j I British Trusts now stand on the T.on-; j don Stock Exchange at premiums ram;i in'* up to 3,00 per cent. : Many of tic Investment Trusts of i Great Britain have tor years pair! rlivij m uds en their shares ranmm* from : iO pei c( u!. to „'o per' cent. \\'c have . ! ii.-t received the rep ' <>f the En." , J Animal (General Meeting of the I | Charterhouse ln\e:-lment Trust, I.'fl. ' laindon. m which the Chairman, Sir | Arthur Marshall, stated that the I I aum estate net profits earned by the I | Trust durini; its life amounted to an 1 ! average of LI per cent, per annum. ; With the introduction of its "Sec-, , end A" and "Second B" Debentures. I 11he Investment Executive Trust is able ; | io build up larger reserve.- than were ' jpo-sible under the oriumal issues. ' j The Directors wish to record their i (appreciation ef the support and eo- ' operation of Debenture-holders j throughout th.e Dominion. Such cooperation has contributed m no small .decree towards maintaining the Tru.-t . , m a strom; and sound financial pus,- ; i turn. W. A. PILKINC.TON, Chairman. ' Auckland, March 20, 1934. ' ANALYSIS OF INVESTMENTS AS AT DECEMBER :U, 1933. Auditor's Certificate. . 1 hereby certify that the following ' is a true analysis of the Investments i of the Company according to the books

I and investment registers of the Comj pany as at December :il, 1933, analysed ! i according lo class and divisions hcrej under:---j "A" Series: Per cent ; G<>. eminent Stocks & Bonds. | Municipal, Power Board, Harbour, Hospital. Drainage. A- Transport Board Debentures .. . 100 To'.al .. .. ldO ' "B" Series: ' J. Government Stuck.s. Local Authority Debentures, Companv and Corporation Debentures 36.00.! 2. Preference and Ordinary I Shares of the Banks, InI surance, Investment, and , Finance Companies . . 21.82(1 3. Preference and Ordinary I Shares in Public Utility j Shipping, and Industrial . Companies . . .4! 272 i Total . 100.000 i "2nd B" Series i 1. Government Stocks. Local Authority Debentures, Company ami Corporation Debentures . . iii .202 2. Preference ;uid Ordinal y Shares of Banks. Insurance. Investm; n! ami Finance Companies ii .)!12 :;. Preference and Ordinar> Shares in Public Utility. Shipping. and Industrial Companies . . . . 4.210 ; Total . . 100.000 •S;;d i M. C. ONF.II.L A P.A.. N.Z.. : Auditor. 1 IMrrrch 10. 10.54 '■ P.B.A. i i minim; BKI.I. HOOPFU ( OMI'ANV The socreU.ty of liie Bell llo.^ir I Company rrpoil.s that trie \\ash-up i'..r : Mho week ended March 23 v. as 4o<>,< ■kiwis. The total t;o!d won to date is ; 10440/ 4d\vts iter. | SAI.F. OF BLOCK OF I.AM) ' Messrs C. E. Jones, l.ut.. auction- ■ eei's and estate ayents, 174 ManehesI Icr street, report having sold by pub- ] lie auction on Saturday, a block of ■ land situate Quir.ns road, Shirley, conj taininy 2lih acres, on account of the I trustees in the estate of ihe late Jane | Philpott to a client, at a satisfactory | iU'ure. the terms, of the sale being cash. The block realised £OB an acre. ! Sale of Hanmer Property I The same linn also report having j sold on account of the owner, his I property at Hanmer, comprising I bungalow of live rooms, fully fur- ! j nished, together with three-quarter of an acre of land, to a client, at a I I satisfactory figure. j ! The firm further reports having sold j | on account of the owner, the shop and | ! dwelling situate corner Dover and Trafalgar streets, St. Albans, to a ! I client at a satisfactory fiffure. | METALS MARKET j ! itmiF.i: ri;n-«s association -bf ELte'iHic | | i'EI.KiiR.U'U —COI'YlllGIIT.) j LONDON. Maivh 23. j

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