N.Z. Mutual Funds makes progress

Press, Volume CXI, Issue 32564, 25 March 1971, Page 12

N.Z. Mutual Funds makes progress

In 1970 there was extreme pressure on the property market, with competition from insurance companies’, provident funds, syndication and private investors, said the chairman of N.Z. Mutual Funds, Ltd (Mr J. R. Maddren) in the company’s first annual report for the year to August 31.

Although this had caused a reduction in earning rates, the fund was receiving more than 10 per cent on all properties purchased, he said. During the 11 months before balance date —the fund was opened on October 1, 1969—-five properties had been purchased to a total value of $655,756.

Since August last year seven more properties were bought, bringing the total to 12 and the value of the M.F.L. portfolio of property investments to $2 million, the report shows. Seven of the properties are situated in Auckland, and five in Christchurch. An endeavour was being made to obtain a spread of property throughout New Zealand, in areas with the highest potential, to ensure maximum capital gain, Mr Maddren said.

The fund made good progress in the 11 months. The balance sheet shows its value as $663,381. Fixed assets were $655,756, mortgages $155,000, current liabilities $28,372, while current assets —mainly secured deposits at call—stood at $190,572.

Of the legislation requiring private superannuation funds to invest 30 per cent of their net assets in public securities, Mr Maddren remarks that it gave added strength and security to the fund, although it affected earning rates. The money . invested in Government loans stimulated the economy, he said, and as the value of real estate generally grows with it, there

would be a direct benefit to fund members, as investors in New Zealand.