Trust plans for fast repayment

Press, 31 December 1980, Page 17

Trust plans for fast repayment

The managers of The New Zealand Income Trust will soon be taking action to enable a speedy repayment to unitholders, according to the chairman, Mr F. H. Renouf, in the 40th half-yfearly report. : As reported, the trust is to be terminated on April 30, and Mr Renouf said that unit values were expected to increase during the next few months to enable the trustees to pay out a price, which they considered will be most attractive. The trust was formed in 1961 with a life of 20 years. “The managers, in conjunction with the trustees have examined the option of continuing the trust for a further period, but with increasing operating costs, compared with the size of the assets under administration, it has been decided to terminate the trust on April 30 in the terms of the original deed.’’. At the time of writing (December 1), the unit value was 103 c ex dividend, Mr Rertouf said-' '

“This last period has been most gratifying for unitholders, both from points of distribution and capital appreciation. "The market has basically been set alight by the recent Fletcher-Tasman-Challenge merger, and the continuing speculation of • other mergers; ' “The portfolio, although structured to give a reasonable income return, has (shown, and is showing now a good growth factor as well,’’ he said. Income rose 9 per cent to $27,312, or 4.96 t a unit; in the six months to October 30, compared with ■ the corresponding period last year. After the deduction of income tax of $1839 and management expenses of $2996, the amount available for distribution is $22,475. A disI tribution of 4c a unit has i been set, of which 2.20 c a ■ unit is tax-free. The tax-free portion has been increased jfrom 1.229 c a unit set last i i year. The net asset of the trust 'amounts to $554,762.