MAY BEGIN IN AUSTRALIA
■ '-' '•'Evening Post," 30th June. In the opinion of sonic authorities on investment in New Zealand, the time is not rirje. nor the field wide enough for establishment of an investment trust in New Zealand. The investment trust in brief igja limited liability company, which invests the.capital r6f: its shareholders in approved/ but -'widely-varying, enterprises. Investors both small and large constitute the! shareholders.- The 'object of the investment'truSt is, to minimise risks and earn an average higher return on capital than is obtainable'by individual investors unable to spread his risks. The "Sydney Telegraph" reports that formation ot an investment trust is under consideration in Sydney. Those behind the scheme are prominent members of the commercial and professional life of the.city, X present plans are brought to maturity, the investing'public of Australia will have tile-op-portunity of taking shares in a type of organisation comparatively new to Australia;! but which has become increasingly popular in Great Britain and America in recent years. ..British experience has shown that success "lias" attended the holding' ot investment trust shares representing holdings in an'assortment of high-grade securities; chosen; byr experts specially qualified to!lceop a watchful: eye on market fluctuations/ Though the trust buys primarily for* investment, it may, and frequently does, realise, profits on turnover ot its holdings. British investment trust companies report that earnings on ordinary shares of 34 representative companies in 1925" ranged between 8 per cent, and do percent., the majority earning between 10 per cent, and 25 per cent. It has .been suggested that -an Australian trust would suffer from remoteness from the great international security markets, and-that tlie home security 'market is too • limited to provide for sufficient spread of risk, inose objections do not appear to be well founded -to those considering the formation of. the* Sydney Investment Trust. Naturally, muth depends on management, and, where a ttust is concerned, proved integrity in directors is.'hecessary to inspire public con--fide'nee. '*'' :
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Bibliographic details
Evening Post, Volume CV, Issue 151, 30 June 1928, Page 12
Word Count
322MAY BEGIN IN AUSTRALIA Evening Post, Volume CV, Issue 151, 30 June 1928, Page 12
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