FIRST N.Z. UNIT TRUST IMPROVES

Press, Volume CXV, Issue 33932, 27 August 1975, Page 19

FIRST N.Z. UNIT TRUST IMPROVES

(New Zealand Press Association) WELLINGTON. With 71.5 pel- cent of its total investible funds in Australian Equities, First New Zealand Unit Trust managers say that devaluation has brought an immediate improvement,, in the value of the trust’s assets.

However the chairman of New Zealand Unit Fund Managers. Ltd, (Sir Bernard O’Connell) says in the trust’s half-yearly report, that this is a “once only” situation, but emphasises the benefits of a spread portI folio. Sir Bernard says that ; sharemarkets both here and |in Australia continue .to be | adversely affected by international economic problems. ■ “There are, however, some ; signs that immediate pressures are easing, and predictions indicate that a gradual upturn in world trade can be expected in 1976. “In the face of falling interest rates most leading equity markets have now come ‘off the bottom’.” In the six months to June 30, gross income amounted to $38,705 compared with $41,000 in the same period in 1974. A reduced number of units on issue means’ the return per unit is marginally higher, being 2.419 c as opposed to 2.415 c in 1974. After deduction of tax, management and ' trustee charges, the net amount available for distribution is slightly more than $25,000. This has enabled the dividend to be set at 1.5 c a unit. The total distribution is 4c a unit compared with 3.7 c a

unit in the previous 12 months, an effective increase of just over 8 per cent. At balance date the manager’s ■ ex-dividend selling price of units was 96c and the buying price 88c.