NEW ZEALAND CREDIT

Evening Post, Volume CXI, Issue 35, 11 February 1931, Page 12

NEW ZEALAND CREDIT

STANDING IN LONDON

(From "The Past's" Representative.) LONDON, 9th January. The financial expert of the Nottingham "Guardian" gives certain advice to investors. It makes interesting reading and should please .New Zealand people. The Writer holds that "in recent months trustee stocks have been generally raised, with a few notorious exceptions, to comparatiyely -high, levels. Securities in this class giving remarkably high returns are, theretor, now difficult to obtain. A line o£ New Zealand Government 4 per cent, stocks is, however, available at 91xd, on which basis the flat yield is £4 7s per cent and the redemption return approximately £4 17s per cent., the stock being redeemable at par between 1933 and 1943. In considering the merits of a fairly short-dated stock standing below par, such &4 this, allowance must be made for the fact that the part of the return which is represented by profits from capital appreciation is not subject" to income tax or super .tax. .Especially, therefore, for those fortunate enough to be in receipt of incomes bearing heavy rates: of taxation the true return is much higher than the yield quoted above. ■' Apart from this factor, this stock must be regarded as an attractive investment on its own merits. New Zealand is perhaps the most English of all the colonies, and it is outstanding for its sympathy with the problems of _ the Old Country.'. At present, of course, it is suffering from the repercussions ot the world crisis 'on its export trade, especially in nratton and wool, but these effects should be temporary. Its financial system is soundly organised; and it has a very high reputation as a borrower.