Page 4 Advertisements Column 1

Auckland Star, Volume LIX, Issue 234, 3 October 1928, Page 4

ABRIDGED PROSPECTUS OF The Australian Investment Trust

(Incorporated under the Companies Act. of New South Wales.) . AUTHORISED CAPITAL £1,000,000. DIVIDED INTO 1,000,000 SHARES OF £! EACH. OF WHICH 300,000 ORDINARY SHARES of £1 each are now being offered for publie. subscription, payable 2/6 per .hare on application. 2/6 per share on allotment, the balance in calls not exceeding 2/6 per share at -ffSP intervals of not less than two months Interest at the rate of 6 per cent, per annum will be paid on calls paid in advance C3N.M* 10,000 ORDINARY SHARES of £1 each are to be allotted as fully paid up sSS shares to the Promoters, and a further sum of <3000 in cash is to - v i be paid to the Promoters upon the fulfilment by them of the conditions embodied in an agreement between the Trust and the said Promoters 10,13 ft ftf|i 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.N* 1.000.000 fI.OOMM Applications have been made to the Directors for 100.000 Shares, which win he W allotted in full- , , , ■ _ Applications will be made for the listing of the Shares on the St ick c — l mi|w h SSS Australia and New Zealand. A brokerage of 6d per Share will be paid on allotments made in nspsil «f -v'i' applications bearing the stamp of any member of the Stock Exchanges of Austxalk MSB 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 SSf mercial Banking Company of Sydney. Ltd- AMERICAN BANKERS. S y dne y- THE EQUITABLE TRUST COMPANY t* MW SIR HUGH E. POYNTER. Bart.. F.R.G.S.. NEW YORK. O'Connell Street. Sydney. Chairman of > nl irixno* Directors. Baldwins and I.C-M. (Aust.) SLy and RUSSELL> 369 ' George I Pty.. Limited. Sydney. HEDDERWICK. FOOKES. 3 R. NEVILLE DANGAR. ALSTON. William Street. "-„ m? # Castle reagh Street. Sydney. Director. Nor- BAKER. McEWAN. mM wich Union Fire Insurance Co., Sydney and MILLHOUSE. Victoria Square. AddS Suburban Blue Metal Quarries. Limited. S.A. |Hp W. H. SWANTON. AUDITORS <*nta«SteeeW Melbourne. M " n * Rtaß STARKEY. and STARKEY.' Barrack Hows, tor. William Crosby and Company. Mel- Sydney- E. S. WOLFENDEN. ALA (LoaZl fcpa - 8 Directors. PH |LIP PRINO " MCKER. B. 8 cv w V jr ?. '. „ , . and Hunter Streets. Sydney. H. W. BAYLEY Sharebroker. Elizabeth Street. Hobart. & CO.. Elizabeth Street. HobattT Tfei. ' # Tasmania. . THOS. NEWBURGH V CO_ |« Sfe: KEITH WILLIAMS, LL.B., Hereford Street, Christchurch. New Zmhal %!■ Solicitor. Castlereagh Street. Sydney. SECRETARIES ADVISORS TO THE BOARD. F. I. W. HARRISON. SON. and KNOX. Pi THE EQUITABLE TRUST COMPANY OF Public Accountants and Auditors. IS. NEW YORK, for United States of America. Street. Sydney. AL -PS' Director. REGISTERED OFFICE. Wellington. N.Z.. for New Zealand. Brook House. 17. O'Connell Street; Sydasy. M OBJECTS. . The Australian Investment Trust. Limited, has been formed for the purpsess ■ 1 specified in its Memorandum of Association, a copy whereof will be found la the appendix, and, in particular, to carry on the usual business of an Investment Trust Onpany. having special regard to certain principles of investment which are "well recogalmd. 'Zf but have, as yet, not been generally adopted in Australia. The fundamental principle upon which the Trust operates Is the " spreading** at fgfe investment risks over a wide field by distributing the greater proportion of both its -vi subscribed and borrowed capital in a considerable number of carefully selected IgiM- - I ments of a diversified character as to the type and location of die indastriaa cm- iSspl ceraed. This is similar to the principle underlying all insurance. The Trust now being formed will be in a favourable position to take foil adiaa! a tage of the many excellent opportunities for investment in Australia and mm— It "1 is felt that the Trust will perform services of the highest value to the community H bring at the same time substantial reward to its shareholders. It Is new recognised that the ordinary individual Investor can secure a Israw %sfi I return with a greater security by holding shares in a well-managed Trust Cowan than he can by attempting to spread his capital over a number of small tasastMate. Trusts have facilities for obtaining information and business which are not opca iISSt the ordinary private Investor. By holding shares In a Trust Company the oedlMiy Investor, at a small expense for administration, obtains the benefits arising ti«m tfcMe < : facilities. Referencit to the official lists of Stock Exchanges in other countries & that Trusts of this character, which have been prudently managed over a period cf years, have been remarkably successful • " *n- ; By the method of spreading the investments over a wide field the factor ef security is developed to the highest possible point. Apart from the dividend return secured in the ordinary course of InsastaMt ms 4 additional profits are Invariably earned by Trust Companies by reason of their organised ■ ■ capacity to buy and sell stocks and to take advantage of the constant averaga snsn ciation in the value of these stocks and shares, which are listed en die mini liml ' 4 Stock Exchanges. J Trust Companies are also In a position to take advantage of many npn«.i—M.* subscribing at par to initial issues of the best and most exclusive securities. By Mama of 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 eflsct the purchase of such shares at very favourable rates. These opportunities are ussaD* not available to the small investor, nor In many instances even to the large lavsste acting as an individual. Trusts also have frequent opportunities of Joining the nosh Vof big investors controlling loans and well-sponsored issues of shares, thus paitidnte in the profits gained from the subsequent rise in the value of these securities. OVERSEAS ARRANGEMENTS. By arrangement with The Equitable Trust Companv of New York, the Australia Investment Trust. Limited, has had placed at its disposal the services of this fan International bank, with total resources of over <108.000.000. for the inniiiiss of advising it as to financial and investment matters in America. Negotiations are proceeding with English financial houses and brokers, ***** the Trust has already been advised by one of the leading firms of stockbroken on ths London Stock Exchange of their willingness to co-operate and assist the Trust. SUMMARY OF INVESTMENT TRUST ADVANTAGES. : 1 -v£The Investment Trust—as established in England. Scotland. Europe, and' America— I OF e^PITAL e b n " °' * ecuring th * following advantages:— (a) Spreading the risk of investment over a large number of securities oa a — plan which creates investment insurance by automatically invoking the law of averages, in accordance with the established practice of r..g«a» sad Scottish Trusts, extending over a period of 50 years. - (b) Diversification of investment by variation in the "location** and "type" af , Vif , many , included in the Trust's holding. (cl Ability of Trusts to thoroughly investigate securities before ntrrluu. 2. HIGH AVERAGE DIVIDEND RETT&NSW ORDINARY sfiXßETdueto:(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 issues 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 gsm* second by the sale of appreciated stock. , (o> Steady increase in amount of annual dividends. i O 4. NEGOTIABILITY OF TRUST SHARES. • ; 1 Investment Trust Shares are practically always saleable at a steadily- / i increasing price above par value for the following reasons:— (b> fi a £h ty TtZ 1.1 A Quotation on all important Stock (b> High average dividend returns. Exchange lists S«n.- tant increase "> market (a) Steady growth of reserve funds. (W Steady market demand by buyers. • MARKET PRICE OF TRUST SHARES. A marked feature of recent financial history has been the great increase in the StSbritS Ttusu formed in EngUnd. Scotland, and America—and in As Trusts already in existence. This increase has been by income earned and dividends paid by most of tie well-established Cir prosperity being naturally reflected In the prices of Trusts' subscribes °to f•? are . Market - •«** the readiness with which the pubic subscribes to new issues of old and new concerns alike. paid-™* «pi7al° of'£l93 Jmmq ° B the London . S *ock Exchange alone. invoMag a deferred stock of these Truito is Jpro'xTmTt^yshareTrf^H^ (n^oTre^ery Wh^ re *>«®ring on the above position of Trust ."'.tares on the I nnifta and ninety-nine pounds sterling (£143.369,999). thousand eight hunanf • ,v av t e extracted from the section mentioned a list fof whi<-l. t . n .ii.« a, '• T ™«* 3 That BUch V Bve«J^*M^V P p ri 'p^ Per centTOn of »uch Stock or Shares is *204/3/4. l^»^.rd w u^ca?rt;^^T/ 2 79: rB ~ nt * • *105/0/11 o. 4 " P^l P iroV 19« premium per centum or CspttJ AVERAGE DIVIDENDS OF TRUSTS. was It: r *r^«^^urmg fi the' fi^r B ~^ < ir^ i M for sr.a N-rl, AVERAGE EARNINGS PER YEAR. 12 Trusts " *" ** l c,s th * n \ P cr cent - If. Tm.«. "" * * * * P* r cent, to 6 per c--nt || Trusts " " " P® l- cent to '? P er « ent - Average 4% Tm.i " •• '' P®r cent, to 25 per cent. _ ® Trusts .. 7 per cent, to 9 per cent. I—vestment Tm,«»- -- gC,t organisations, the Metropolitan Trust and the Britidi Investmen Trust. -veraged 12 per cent, and 13 per cent, respectively during 1910-1920. re*erve f£ndm h» JL e, ' - h v l tol 7_2 f each ' ™st under review revealed that large . i^m of Ron.!« inv ? ri * bl y buflt up by these companies, and in many cases to to ft. r , " d j "P* rt * Tom the average annual dividend referred wav trulv f .v Th £,, lwted annual dividends are. therefore, ta no on their oritfnal in handsome return m « de to » tock holSa * MANAGEMENT. in J)' t ' le Trust, recognising that management plays a most important part wvl .2!J? r ? anl!U, t i r n has secured the sen-ices of Mr. F. /TLKjl f c m h I S - P*»««on as Head Office Manager of the Commercisl of te ° Td " t0 a " Ume lhe dutses ° f a, * irTn " '** *° b T* r the problems of the Trust a sound and maturs LIJ? i " el* -of 40 years experience in bankina- and of the close association with in touch. ' B St " Au,tra,ia ' with ~ hich hi 9 ke P l him PROMOTERS' CONSIDERATION. to till" l« ter * c r onß ' der »tion is for the work performed by the Promoters incidental JJ" «° f T he T ™ t - Protracted and extensive investigations into the tC tnftWMnanf. 5 Tl^ Bta . countries, as well as investigations covsrmg haavv rm+rxn* , Bect^^ e * In local Stock Exchange Markets, were necessary. have - ' " curT obtaining legal and other expert opinions. The Promoters ntehllitiMl «H»k I'll which should result in valuable connections being established srith »imiUr Institutions in England and America. Very considerable business Fnolufi >fl j ensue from these negotiations principally jn the investment of thu intrnd.Ti ?* pltal ta Australian enterprises, and should ultimately influence the introduction of a large amount of overseas capital into the Trust itself. CONTRACTS. nature v»°beS Ct «nteied theret ° " nd ' PA R NY E TimT^ W "'S.te, «W- between PHOENIX INVESTMENT COM f * nd SAMUEL McHUTCHISON, as Trustee for the TruttJ]_, . formed— whereby, in consideration for the services performed j WifoimiJ and obligations undertaken in connection with the pro- « ' iSm Sll Phoenix Investment Company. Limited, is to he '0.000 Ordinary Shares of £1 each fully paid, and to be paid £3000 2 Arpcr»«AJT*? . reimbursement for expenses incurred and otherwise. muPAVv i d " l ® d ,oth . November. 1927. between PHOENIX INVESTMENT 5 «rßPrvir«T j .Ti e Trust, adopting the last mentioned apreement. th September. 1928. between THE AUSTRALIAN '.NVPST'»LTDC - «nd FREDERICK JOHN LESLIE DUNLOP, to act as Managing Director of the Trust for a periftd of five years. App«<*«y»w may be lodged with aay of the Branches of the Bank of New ZeaUaA tka Company's Brokars. and any Member af the Auckland Stock Exchange. *111 all