A.M.P. superannuation fund exceeds $100M

Press, 26 November 1979, Page 22

A.M.P. superannuation fund exceeds $100M

PA Wellington The value of the A.M.P. Society’s investment-linked superannuation fund has exceeded $lOO million for the first time in the company’s history. A report from the society's fund showed that assets totalled 5100.5 M in the year Ito September 30. The allocation price of the fund’s company share units increased 10.6 ’per cent during the final three months ;and 21.4 per cent. for the I year. ; In the same period the unit; prices for fixed interest I securities increased only 9.21 per cent because of the adverse effect of steadily in-1 creasing interest rates on the i market value of the existing: portfolio. However, the unit! was currently yielding 13.75 per cent, the report states. Good company reports and prospects, the shortage of scrip, and easier liquidity helped the sharemarket to

rise during the past quarter, i according to the report. However, it seemed unlikely that the same surge would continue for the coming quarter. Property values were relatively stable during the year. The allocation of the property investment unit was 11.1 per cent above the figure a year ago. “Whilst in Wellington the I industrial market remains quiet, a growing confidence amongst export-orientated companies in Auckland indicates that the market could be expected to improve I in the next six months.” I The fund continued to provide house loans t.o members jof the contributing superannuation plans and 77 loans (totalling nearly SI.SM were ■ paid out during the quarter, i The fund’s “A units,” in which the society chooses the spread of investments between sectors, increased its allocation price 11.6 per cent. Currently, 80 per cent of all plans, representing 60, per

(cent of the fund, are invested .in A units. The manager of the A.M.P. ■Society’s investment-linked (superannuation fund (Mr P. A. Randall) said the results supported the society’s stated philosophy that the long-term :: interests of the fund were best served by investing a substantial proportion of available funds in company • ;shares and property. : Of the total assets of the I fund, 50 per cent were curHrently invested in company . shares and property. : “Although this is our overall philosophy, there will be ■ occasions when investment in ■fixed interest securities is ■ advisable because of the high o yields available,’’ Mr Randall /said. At present 140 New Zealand companies used the : society’s investment-linked ’ fund for the investing superannuation contributions, which now total more than ■ S2OM a year.