INTEREST REDUCED
Public Trustee’s Common Fund LOSS TO VICTORIA COLLEGE Formal notice from the Public Trustee that owing to the unfavourable economic and financial conditions it has been necessary to review the rate of interest allowed on trust moneys invested in the common fund was received by the Victoria College Council at its meeting last evening. A circular letter stated that while the need for any step which would result In lower receipts by beneficiaries or clients was regretted, the office had no alternative in view of the decreased return from the investments of the common fund and the increased expenses of collecting interest and supervising securities, but to effect a reduction in the rate of interest allowed on moneys invested in the common fund. As from April 1, 1932, the rate of interest allowed on trust moneys had been reduced to 4 per cent, per annum.
The chairman, Mr. P. Levi, said that the reduction affected the college in regard to the Weir bequest moneys held by the Public Trustee. These amounted at present to about £38,000. which would mean a reduction in interest of £3OO or £4OO a year. Dr. T. Duncan Stout: Would it be possible to take the money out of the common fund and reinvest it? The chairman said that in his opinion there was not the. slightest chance of doing this. The Public Trustee was appointed executor of the estate, and there was an express direction in ‘the will permitting him to put the money in the common fund. He could not carry on if everybody withdrew their money as soon as interest went down.
Mr. H. A. Huggins said that such people would not withdraw their money; they would insist that it be put In Government securities at 5 per cent. Mr. Huggins said In the Weir investment of £38,000 the Public Trustee was going to net at least 1 per cent. He did not think it was right that he should make that amount out of the estate.
The chairman added that the council had no say In the matter. They could, of course, protest, but he did not think there was the slightest hope. However, he would look into It
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Bibliographic details
Dominion, Volume 25, Issue 230, 24 June 1932, Page 13
Word Count
369INTEREST REDUCED Dominion, Volume 25, Issue 230, 24 June 1932, Page 13
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