LIFE ASSURANCE AND INTEREST RATES

Press, Volume LXXXIII, Issue 25208, 12 June 1947, Page 8

LIFE ASSURANCE AND INTEREST RATES

A.M.P. INVESTMENT POLICY Life assurance could continue to ope. rate satisfactorily provided the interest rates did not fall below the point where thrift became unattractive, said the vicechairman of the Australian Mutual Provident Society, Mr C. H. Hoskins, at the annual meeting in Sydney last week. As long as the cheap money era lasted life assurance offices could not do mor« than minimise the fall in interest earning. said Mr Hoskins. The interest rate earned by the society had fallen from £5 14s Hd per cent, in 1930 to £3 17s 5d per cent in 1946. This decline was caused by the investment for many years of “new money" and money being reinvested at steadily declining rates. It was accentuated by the full support given to war loans. To obtain a wider spread of investments, the society began investing last year a part of its funda in company shares, and extended its holdings of properties and company debentures, all selected by high standards. Effect on Market The indication by the chairman that the society is investing in eligible preference and ordinary company shares aroused interest in Sydney, where the opinion was expressed that it was likely to affect nxarket sentiment and keep prices firm. It has been known for some time that institutional buying was taking place, but the A.M.P. chairman’s statement is the first public announcement of its kind. Investment assets of the society at December 31 included:—Preference shares, £5lOO (1945 nil); ordinary shares £243 317 (nil); company debentures’ £1.652.627 (£1,456,092): freehold and leasehold, £941,389 (£427.561). TAXES AND RISING COSTS (P.A.) WELLINGTON, June 11. Levies for taxation in one form or another amounted to 3s 3d in every worth of goods sold, stated Mr J. R. McKenzie, managing director and chairma»~ presiding at the annual meeting of McKenzies Department Stores to-day. Overseas freights, exchange and bank charges, of course, could not be avoided he said. They represented a substantia amount in every sale. Salaries, wages, and trading charges had considerably increased, and represented 3s in every £L There was available to shareholders by way of profit 8d in the £ only. Shares and Debentures.— Sale pricei (where not stated otherwise) of bank and other corporation shares and debentures in London on Wednesday were: Bank of Australasia, £lO 14s 4Jd; Commercial Bank of Australia, b, 23s 3d, a, 24s 3d; E., S.. and A. Bank. £6 17s 6d; Union Bank of Australia, £lO 15s; Bank of New South Wales, £32; British Tobacco. b. £2 2s 6d, s. £2 3s 9d; Goldsbrough Mort., 31s 3d; Dalgety, b. £9 !7b 6d, s. £lO 2s 6d; National Bank of New Zealand, £3 2s 6d: Dalgety, 4 per cent. Debentures, b. £lO3, s. £lO5, ordinary stock. £121; P. and O. Deferred, middle price, £3 12s 6d. Mining Shares.—Prices of mining shares in London on Tuesday were: Broken Hill North, £2 13s 9d; Broken Hill Pty, £2 Os 7Jd; Zinc Corporation, £4 18s 9d; New Guinea, 2s Ijd.