Page 4 Advertisements Column 1

Auckland Star, Volume LIX, Issue 233, 2 October 1928, Page 4

J - \ ABRIDGED PROSPECTUS ; |J OF The Australian Investment Trust Limited I

(Incorporated under the Companies Act* of New South Wales.) AUTHORISED CAPITAL... £1,000,000. DIVIDED JNTO 1,000.000 SHARES OF £! EACH. OF WHICH s ; |f 300.000 ORDINARY SHARES of SI each are now being offered for public . subscription, payable 2/6 per share on application. 2/6 per share on allotment, the balance in calls not exceeding 2/6 per share at . . intervals of not less than two months. Interest at the rate of V 6 per cent, per annum will be paid on calls paid in advance £300.Mfi 10.000 ORDINARY SHARES of £1 each are to be allotted as fully paid up shares to the Promoters, and a further sum of £3000 in cash is to • be paid to the Promoter* upon the fulfilment by them of the conditions embodied in an agreement between the Trust and the said Promoters . 10.000 690.000 SHARES of £1 each are to be held in reserve until such time as the Directors consider it advisable to issue all or part of these Shares , held in reserve either as Preference or Ordinary Shares 690.000 1.000.000 £I.ooo*oo Applications have been made to the Directors for 100.000 Shares, which win fc, ' - allotted in full. Applications will be made for the listing of the Shares on the Stock FTrhirnw {§ Australia and New Zealand. , A brokerage of 6d per Share will be paid on allotments made in applications bearing the stamp of any member of the Stock Exchanges of Amt»«% or New Zealand. BOARD OF DIRECTORS. BANKERS. F. J. L. DUNLOP (Chairman and Managing THE NATIONAL BANK OF AUSTRALASIA. Director), late Head Office Manager, Com- LIMITED. BANK OF NEW ZEALAND. mercial Banking Company of Sydney. Ltd. AMERICAN BANKERS. Sydney. THE EQUITABLE TRUST COMPANY OP SIR HUGH E. POYNTER. Bart.. F.R.G.S.. NEW YORK. O'Connell Street, Sydney. Chairman of <- OJ irrrr>B<; Directors. Baldwin's and J.C.M (Aust.) SLy awJ RUSS ELL. 369.' George Stle*. y ". Lumted - Sydney. HEDDERWICK. FOOKES. R. NEVILLE DANGAR. ALSTON. William Street. Castlereagh Street. Sydney. Director. Nor- BAKER. McEWAN. LIGERTWOOD/iS wich Union Fire Insurance Co.. Sydney and MILLHOUSE, Victoria Square. Mnlslili Suburban Blue Metal Quarries. Limited. S.A W. H. SWANTON. AUDITORS Collins Street. Melbourne. Managing Direc- STARKEY. and STARKEY. Barrack 'Tn i tor, William Crosby and Company. Mel- Sydney. E. S. WOLFENDEN. A.I.A (LtmLl bourne. Director of the Commercial Bank F.CP.A-. Hunter Street. * of Australasia. Limited, and Chairman of • noovFDQ Directors. Sugar Co.. Limited. pH , LIp pR , NC and K^ ER> con-p , THOMAS LYONS. and Hunter Streets. Sydney. H. W. BAYLEY Sharebroker, Elizabeth Street. Hobart. & CO.. Elizabeth Street. Hobart. tSTasmama. mania. TWOS. NEWBURGH & CO, 143 KEITH WILLIAMS. LL-B-. Hereford Street. Christ church. New 7tihal' Solicitor. Castlereagh Street. Sydney. SECRETARIES ADVISORS TO THE BOARD. F. I. W. HARRISON. SON. and ICNOX THE EQUITABLE TRUST COMPANY OF Public Accountants and Auditors. IS. Beat NEW YORK, for United States of America. Street. Sydney. ALFRED SMITH. ESQ, Company Director, REGISTERED OFFICE. Wellington. N.Z, for New Zealand. Brook House. 17. O'Connell Street. Sydney. OBJECTS. The Australian Investment Trust. Limited, has been formed for the purposes specified in its Memorandum of Association, a copy whereof will be found in the appendix, and. in particular, to carry on the usual business of an Investment Trust Company. having special regard to certain principles of investment which are well ncepM, but have, as yet. not been generally adopted in Australia. The fundamental principle upon which the Trust operates is the "spreading** of investment risks over a wide field by distributing the greater proportion of both it! subscribed and borrowed capital in a considerable number of carefully selected inwments of a diversified character as to the type and location of the industries concerned. This is similar to the principle underlying all insurance. The Trust now being formed will be in a favourable position to *»V» full advantage of the many excellent opportunities for investment in Australia and im issas It is felt that the Trust will perform services of the highest value to the community —J bring at the same time substantial reward to its shareholders. It is now recognised that the ordinary individual investor can secure a return with a greater security by holding shares in a well-managed Trust **—■ nm i \ than he can by attempting to spread his capital over a number of small Inn itimsli Trusts have facilities for obtaining information and business which are net open to ' -£ the ordinary private investor. By holding shaves in a Trust Company the acdfaaiy investor, at a small expense for administration, obtains the benefits arising from these facilities. Reference to the official lists of Stock Exchanges in other countries scvmb that Trusts of this character, which have been prudently managed over a of years, have been remarkably successful. By the method of spreading the investments over a wide field the -*-r of security if. developed to the highest possible point. Apart from the dividend return secured in the ordinary course of investment additional profits are invariably earned by Trust Companies by reason of »*y*fr onaabsd capacity to buy and sell stocks and to take advantage of the constant average am- -■ ciation in the value of these stocks and shares, which are listed on the Briactel Stock Exchanges. u Trust Companies are also In, a position to take advantage of many -rr nrTniiUha ef subscribing at par to initial issues of the best and most exclusive securities. By lesson ' - their organisation and command of capital Trusts can enter into negotiations far large blocks of shares in highly valuable issues, and are thereby enabled to eObct the purchase of such shares «t very favourable rates. These opportunities are usually not available to the small investor, nor in many instances even to the fane liiimliii •» an individual. Trusts also have freqpoent opportunities of joining die pools of big investors controlling loans and well-sponsored issues of shares, thus parti cine tine in the profits gained from the subsequent rise in the value of OVERSEAS ARRANGEMENTS. By arrangement with The Equitable Trust Company of New York, the Australian Investment Trust. Limited, has had placed at its disposal the services of this larse international bank, with total resources of over £108.000.000. for the niniiiisi ef advising it as to financial and investment matters in America. Negotiations are proceeding with English financial houses and brokers, and die Trust has already been advised by one of the leading firms of stockbrokers on As London Stock Exchange of their willingness to co-operate and assist the Trust. SUMMARY OF INVESTMENT TRUST ADVANTAGES. The Investment Trust—as established in England. Scotland. Europe, and America— 1 3 SAFETY a OF CAPITAL C b DS the following advantages:—— (a) Spreading the risk of investment over a large number of securities on a plan which creates investment insurance by automatically invoking the kv , o:f " v erages. iD accordance with the established practice of sad Scottish Trusts, extending over a period of 50 years. (b) Diversification of investment by variation in the "location** and "type" ef tnemany investments included in the Trust's h«Miw g Cc) Ability of Trusts to thoroughly securities before HI«I AVERAGE DIVIDEND RETURNS ON ORDINARY SHARES^due to:— (a) Reserve funds created from the profit from the sale of securities which have appreciated in value. (b) Profits from participating in the underwriting of loans and sound industrial , ls3ues to the extent permitted by the memorandum of the Trust. C °NSTANT APPRECIATION IN MARKET VALUE OF TRUST SHARES, owing to:— (a) Additions to Reserve Funds from annual profits and from capital secured ... °y sale of appreciated stock. (b) Steady increase in amount of annual dividends. 4. NEGOTIABILITY OF TRUST SHARES. Investment Trust Shares are practically always saleable at a steadily- / % increasing price above par value for the following reasons — ifi y. e , ° capital. (d) Quotation on all important Stock <b> High average dividend returns. Exchange lists. 5°,"V" nt ,ncreasc in market (e) Steady growth of reserve funds. (f) Steady market demand by buyers. MARKET PRICE OF TRUST SHARES. num^r m of rk |tll- f t!L tUr ? T f P ! ce ? t fin ancial history has been the great increase in tl» of fo pied.w England. Scotland, and America—and in X . already in existence. This increase has been accompanied by Trosts thefr *£? dividend s paid by most of the well-established «£lfritieJ oJT c! y be l?*_ I natnral, y "fleeted in the prices of Trusts* "b" cribes to nrw Share Market. " nd the readiness with which the public SP 8 to new issues of old and new concerns paid-TO el L£itol°Trf r e'lo 0 ! ° n the Londo n Stock Exchange alone, involving a < deferred stock of T * s premium above par of the ordinary or j approximately 106 per centum. The shares of newlyln.llt"v B eW 4« are ° n thC StOCk EXCh " nKe - a,so standing at a pr£ta Stocfc l F*rh»^r n,B; rl .^ CtS £ on the above position of Trust Shares,on the London F CPA rS a from a report furnished by Mr. E. S. Wolfenden. A.I-A (Lond.). Consulting Actuary. Hunter Street. SySi^T Daily Offici^lTur^lJ^d«m>^^wrJ rJS j » e i u ° B , of a of Stock Exchange totaf preset Patd-uL i? r .K W<^ ne !^ ay ' 6th January. 1928, and certify that the hundred and ninetv !l C frusta appearing: in the section mentioned is one closed! L 1!? section mentioned a list (of which two copies are enamount having Ordinary (including Deferred) Stock or Shares showing the '• r ?rt2!k p s i t™,?,,*" T "' a k * raß 3. That V "v*«J^MUrk!^ l< £,* Per ceatum of Stock or Shares is £204/3/6. av: t ra up^capi"i e of p ii9/27r c * TOt ' a premtnm ° f £,05/o/m Ch of P^ s %/5!? re,e,lt3 an averaße premium per centum of* Capital AVERAGE DIVIDENDS OF TRUSTS. was »7* fiVe Co®P-nies for the period 1912-1914 inclusive pe/ c°n" .T"" wa » P*' cent.; and has been over • lias been the general j ® war ; Progressive improvement in earning power success" 1 companies years. Nearly of the uSuiuJly standing share and ,^ >ayi ,V K P® r cent, or over, have an outcondition su«ests th^^^L P^ Ital of weU over £1.000,000 for each Trust. ThU Trusts. Ttf n . tji ?j j ® ° the general principles underlving Investment £fo£- AuSft,™9?4 Ld Ce h '« h « « a ' is ofKn mj'ket " * fignr«, r <>f lk . AVERAGE EARNINGS PER YEAR. 12 Trusts ** *" - CS3 than \ Per cent. 16 Trusts * " ** 1 cent " to P* l " cent--11 Trusts "" "tt IpKT cent_ to '? P« r cent. a_, ,c y •* 'J P«r cent, to 25 per cent. Average 45 Trusts .. .. 7 per cent, to 9 £e r cer.t. orsanis * tio " B - i , the Metropolitan Trust and the British Examinatirin nfPP r cent, and 13 per cent, respectively during 1910-1920-reserve funds hxw inner historv of each Trust under review revealed that large £su« of lnv w" ab,y bui,t U P by these companies, and in many cases to in the above sch^dnl^ 6 Tk" j apart from average annual dividend referred way truiv „ ,U,ted annual dividends are. therefore, in no on their original investmtLts in handsonie retum made to stock holder. MANAGEMENT. in the Lcwm Trust, recognising that management plavs a most important part Dunloo. ff n,Sa L ,0n Buch . aa this -. has secured the services of Mr. F. ABankini If" 11 J 3 , position as Head Office Manager of the Commercial Manasing-Director of thc ™ ° rder aasume the duties of Cha'man and ( judsrmen I°?^^li* t0 b f ar on . problems of the Trust a sound and mature other laree financial .«*penence in banking, and of the close association with constantly in touch. " ln Austrelia " wlth which his high p6s:tion kept^m _ . PROMOTERS- CONSIDERATION. to the' formation 5 **oo r t^le worlc performed by the Promoters incidental operations of simil> t ™ Protracted and extensive investigations into the ATmovLl ' Trust, m other countries, as well as investigations covering heavy expense was inrurrlil'' OC ' c , Exchange Markets, were necessary, while have also instituted and other expert opinions. The Promoters established wh^ h » ho , uld resu,t ™ valuable connections being to the Trust should *tu 2°d and America. Very considerable business English and American r*nif>l r . om these negotiations principally in the investment of the introduction of a law A °»tralian enterprises, and should ultimately influence ntroauction of a Urge amount of overseas capital into the Trust itself. _ ... CONTRACTS. nature into —° f the parti " thereto and the date and AN^TIMTTED^JH 7^ 1 w 7 ; 1 . 1^r re « n PHOENIX INVESTMENT COMthen about^tol2' McHUTCH, SON. as Trustee for the Trustand to be par fai 4xl consl deration for the services performed moti<m of fVf undertaken in connection with the proallotted 10 000 Ordinal 4!k Investment Company. Limited, is to be in cTsh by' «v *°{ £l each hU ? P* id - and paid £3000 2. AGREEMENT datLl m ll1 * v r expenses incurred and otherwise. COMPANY LIMITFn J November. 1927. between PHOENIX INVESTMENT ' SSSSf.JKWSr. DirectM of th. Tra.t for . kv. SL ) 'ii,. DLNI ' OP " " •k. wTit-'c «'Sr. z^4