Unit Trust Raises Dividend

Press, Volume CIX, Issue 32073, 22 August 1969, Page 14

Unit Trust Raises Dividend

(N.Z. Press Association) WELLINGTON, August 21. The First New Zealand Unit Trust announced today that its dividend for the six months to June 30 had been increased from o.Bc to I.oc a unit.

Hie year’s dividend is up from 1.7 c to 2.3 c representing a 35 per cent increase. In its eighteenth report for I the six months, the trust said the manager’s selling price of units had risen by 6c or 8 per cent. In a letter accompanying the report, the manager (Mr R. L. Ching) said that during the period six cash issues and one bonus issue were taken

into the trust and the portfolio at balance date comprised 25 New Zealand and 37 Australian companies.

"Based on the realisable value of units at balance date growth of capital plus income since the trust was floated is of the order of an average 9 per cent per annum,” said Mr Ching. The directors said that “the growth in the trust’s income is soundly based and we have little doubt that it will continue into the current halfyear when unit holders can reasonably expect a further increase.

“The December half-year is traditionally the half in which a higher income is received by the trust and there are already indications that many of the companies in which the funds of the trust

are invested will be declaring higher dividends. “With the significant capital gains secured over the last two years, in particular, it is our aim to protect these and to position the trust for the next step forward.

“While the prime objective of the trust is capital gain, it will be appreciated that with the vigorous expansion of both the Australian and the New Zealand economies many investment opportunities' present themselves.

“This is particularly the ease with new issues made by companies wishing to expand to meet the future demands for their products. OVERSEAS MARKETS

“Again, we note the strong desire of the British and United States Governments to contain inflation and this necessarily affects business conditions right round the world.”

One symptom of the present situation is the increase in interest rates on fixed interest borrowings. A rise in interest rates does have an eSect on the market in that the tendency could be away from equities in the short term.

“We have anticipated the current situation and our policy is one of holding a higher proportion of cash to be invested when suitable opportunities present themselves."

N.M.A. Move National Mortgage and Agency Company of New Zealand, Ltd, has purchased the Taupo-Reporoa section of the business of de Pelichet, McLeod and Company, Ltd. De Pelichet has a considerable number of farmer clients in the area, a store and office at Taupo, and a shop at Reporoa. The withdrawal from these districts of de Pelichet, McLeod is a rationalisation within the stock and station industry. Their existing staff will be retained but their efforts will be supplemented by those of N.M.A. staff and control will be from the N.M.A. branch office in Hamilton.

C.B.C. Savings Lowers Profit (N.Z. Press Assn. —Copyright) SYDNEY, August 21. The Commercial Banking Company of Sydney, Ltd, which is still having merger talks with the National Bank of Australasia, Ltd, suffered its first profit setback in eighteen years during the 1968-69 financial year. Net profit of the group slipped $159,941 to $4,111,536 from the record $4,271,477 in 1967-68. C.B.C.’s savings bank subsidiary accounted for the drop in overall profit.