INVESTMENT IN UNIT TRUSTS

Press, Volume CI, Issue 29871, 11 July 1962, Page 19

INVESTMENT IN UNIT TRUSTS

Long Term Should Be Aim (NZ. Press Association) ; AUCKLAND. July 10 Nobody should invest in a unit trust unless he intenlel to leave his investment undisturbed for a period of years, said the chairman of Dominion Unit Fund Managers. Ltd <Mr E O Faber!. in the third half-yearly report of the First Dominion Unit Trust. Unit trusts are not a suitable form of short-term investment. he says Overseas experience is that the great majority of unit holders are medium or long-term investors It is significant, Mr Faber says, that overseas growth in the popularity of unit trusts over the last fifteen months coincided with a fairly prolonged period of sharemarket uncertainty Inclination “It has been found the longer the period of stock market uncertainly. the stronger the inclination of the small investor to achieve his investment objectives by putting his money into managed funds" Mr Faber reports that fourteen of the 102 companies in whose shares the trust’s funds are invested announced bonus or cash issues during the period, bringing the total number of issues from which the trust benefited to fiftyseven. Income declined compaded with the corresponding period of the previous year and dividend is reduced for the half-year from 7s (kl to 6s a 100 units—equivalent to 2.4 per cent, per annum. Total funds are £174,331. of which 44.29 per cent, is invested in Australian shares

U.D.C. Australia Profit High er (N.Z. Press Assn.—Copyright) SYDNEY, July 9. United Dominions Corporation (Australia), Ltd., subsidiary of Britain’s largest finance group. lifted net profit by nearly 50 per cent, in the year to March. 1962. The company is again paying a 21 per cent, ordinary dividend on the £1 million paid capital, and this will take £210.000. First dividend was remitted to the parent company after the 1960-61 balance. No transfer is being made to the general reserve, which still stands at £324,000. The latest result of £212.915. after tax. represents an increase of £70.418 on the previous year's figure of £142,497.

Dental, Medical Bonus Is 1:5 The bonus issue recommended by directors of Dental and Medical Supply Company. Ltd., Wellington, for shareholders registered at July 30 is one-for-five and not one-for-one as announced earlier. the Christchurch Stock Exchange reported yesterday. The bonus ratio was incorrectly stated in a Press Association message from Wellington published yesterday

U.S. Cuts Margin Requirements (N.Z.P.A.-Reuter —Copyright) WASHINGTON. July 9. The Federal Reserve Board todav cut from 70 per cent, to 50 per cent, the down payment which must be made on s'oek purchases. This down payment is known as the margin requirement. It was the first change in 'he margin requirement, since July, 1960. when it was reduced from 90 per cent, to 70 per cent. Ampol Exploration. Ampol Exploration (Queensland) Pty.. Ltd., a wholly owned subsidiary of Ampol Exploration. Ltd., will begin searching for oil in Queensland early In August. according to the managing director (Mr W. G Walkley) The comnany has been g-anted permits in about 12.000 square miles extending from jest north of Rockhampton to Repulse Bay. north of Mackay, and to seawards about 60 miles, and approximately 26.000 square miles from Repulse Bay north nearlv to Tullv and extending seawards in the northern part to Georgetown,