Novel touches in A.A. investment

Press, 14 December 1982, Page 33

Novel touches in A.A. investment

In a new completely . revised prospectus. A.A. " Finance. Ltd. the finance service of the Automobile Association, has added quarterly interest payment and a free Automobile’ Association membership for longer term investments to its list of saving incentives. When announcing the issue the general manager (Mr R. W. Hill) said that the company had put considerable thought into the revised prospectus in order to provide as much information about the company as possible,, in an attractive and readable manner. Although the maximum interest rates allowable under the current Government Interest on Deposit Order are offered, the company has recognised that many investors need a regular cash income from their investment. Payment of interest every quarter rather than only six monthly would help offset the effect of the depressed interest rates, he said. As further encouragement to those prepared to invest

for longer terms, the company would provide absolutely free, membership of an Automobile Association for each year of the investment, subject only to investment of not less than $2OOO for a minimum period of 2 years. Of course, a 5 year investment meant all the benefits and privileges of A.A. membership completely free for the whole 5 year term, he added. The issue is for $19,000,000 Registered Secured Debenture Stock and $4,000,000 Unsecured Deposits, with the company reserving the right to accept a further $7,000,000 in oversubscriptions. Mr Hill said that in spite of the depressed nature of the motor vehicle market at present, the company was still experiencing a strong demand for loans and could consequently put investment funds to immediate use. Copies of the new prospectus will be available at all A.A. Offices, A.A. Mutual and SIMU Mutual Insurance offices, Bank of New Zealand branches, or stock exchange members.