Company News MUTUAL FUND FORMED

Press, Volume XCIX, Issue 29221, 3 June 1960, Page 15

Company News MUTUAL FUND FORMED

£lO,OOO Westport Venture Two days after the announcement of the first offer of units by a unit trust in New Zealand, comes the announcement of New Zealand’s first mutual fund. United Investors Mutual Fund. The main difference between a mutual fund and a unit trust, according to the promoters of the new venture, is that “a mutual fund has perpetual life, whereas a unit trust has a life limited by law.” ,

Based in Westport, the fund has a capital of £lO,OOO. ‘The recent issue of shares was not made available to the general public," says an announcement from the fund. “It was, however, substantially over-subscribed.”

Directors are Mr Henry Lovell (chairman), a Westport solicitor; Mr J. P. Lee. Reefton, sharebroker; and Mr A. J. Wakefield Westport. public accountant Managers are Investors Management. Ltd., Westport. The 40.000 5s shares of the fund are to be continuously on offer and shareholders will be able to resell their shares to the fund’s managers at prices reflecting the current net asset value of the funds. The aim of the fund is “to achieve a steadv growth of invested capital. . . The fund will purchase shares in companies which the researches of the management indicate have better than average growth prospects.”

STANDARD-VACUUM OIL YEAR Standard-Vacuum Oil Company, (N.Z.) Ltd., reports thai gross income for 1959 of £14,709.000 was the highest in its history and 5.7 per cent, highei than in 1958. The company’s net profit, however, was only £3OOl greater than in the previous year, and stood at £ 209,000 after taxation.

Mr W. S. McLean, managing director of Standard-Vacuum, said that all forms of taxation including petrol tax collected on the Government’s behalf, BUUoa Xan increase of £1,228,000 over the previous year) and accounted fpr 44 per cent, of the company’s gross income.

“In spite of the general wage increase of 5 per cent., unproved facilities and methods enabled operating expenses to be held to a figure less than 1 per cent, higher than in 1958,” said Mr McLean. “The return on shareholders’ funds fell from 4.9 per cent, in 1958 to 4.3 per cent., yet during the year the company invested a further £323,000 in expanding its facilities which sum exceeded the net profit by £114,000. This pattern has been constant in recent years,” said Mr McLean, “and is instanced by the expenditure on the concentration and modernisation ot the company’s Wellington facilities at Seaview on land reclaimed from Wellington harbour; This modern plant includes equipment for the blending of stock oils brought in by tanker, thus saving considerable overseas exchange and freight charges when compared with the old method of importing blended lubricating oils in

drums. The grease making equipment at Seaview will also be the most up-to-dote in the countrv