Information on unit trusts

Press, 24 May 1988, Page 31

Information on unit trusts

Unit trusts are still considered to be one of .the most popular and sensible investment mediums available today. Although unit trusts, or similar types of investments, have been available overseas for some years, they only sprang to prominence in New Zealand in 1985. The abolition of exchange control regulations in December 1984 meant that global unit trusts could become a reality for New Zealand investors.

A, good unit trust will have a wide spread of investments and the minimum of risk. Furthermore, the investment is professionally managed. More recently, managers of New Zealand based unit trusts realised

their responsibility in looking after funds subscribed by ordinary people. They considered that their responsibilities went beyond those required by the law. As a result, early last year the Unit Trust Association was formed to promote and protect the interests of unit holders.

Most unit trust organisations are now members of the association and will be able to supply investors with a booklet, “Explaining Unit Trusts,” which was produced late last year. The booklet lists the organisations that are members and outlines most of the information a potential unit trust investor will need to know.