Unit Trust ‘inhibited'
It was unfortunate that legislation introduced in the early 1900 s inhibited the flexibility of the First New Zealand Unit Trust, according to the chairman of Unit Fund Managers, Ltd (Mr F. H. Renouf), which handled the trust.
“The pooling of resources provides an excellent investment medium for the small investor and it is tobe regretted that official policy has not given greater recognition and incentive to this form of ‘small savings’ investment,” he said.
In the final report of the trust, which was terminated on December 31, Mr Renouf said the trust, the first to be
floated to the New Zealand public, was designed to provide investors with a reasonable income return coupled with a long term capital appreciation.
We believe that the trust achieved this purpose. “Regular dividend cheques have been paid six-monthly and those original investors of the then 50c units, have seen the capital value increase four-fold.” The decision to terminate the trust was taken last year based largely on the fact ■that administration costs were placing an increasingly heavy burden on a trust of moderate asset size. As such it was considered that a realisation of assets
and distribution of proceeds would be in the best interests of all unit-holders. By December 31 all assets had been converted into cash. The total amount, available for distribution is’ $2,487,980. representing 231.44 c a unit on the total of 1,075,000 units outstanding at December 31.
The 231.44 c is made up of 228,16 c capital (tax-free), 2.6 c income to December 31 (taxable) and 0.68 c income to Februa~y 13, 1981, (taxable). The final distribution date was set at February 13, the date when the auditors issued their final report.
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Bibliographic details
Press, 26 February 1981, Page 18
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286Unit Trust ‘inhibited' Press, 26 February 1981, Page 18
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