Argo to list

Press, 12 February 1986, Page 41

Argo to list

SIMON LOUISSON,

By

in Wellington

An Adelaide-based investment company, Argo Investments, Ltd, is to list on the New Zealand Stock Exchange.

The company will list in New Zealand to allow New Zealand superannuation schemes to invest in the company and to attract local investors who want to invest in an Australian equity trust type company. In a document introducing the company, Wellington brokers Francis Allison Symes and Company say that Argo’s investment performance has averaged a 26.8 per cent return over the last 10 years. Argo has assets of sAustl3sM and last year reported a profit of sAusts.l million.

The company invests in

a range of companies, its largest investment being its sAust6.3M stake in a sister company, Bounty Investments, Ltd.

Argo is a form of cooperative investment based on the principle that portfolio diversification reduces risk and that professional management can maximise returns. Its investment policy is aimed at providing safe, steady and satisfactory progress through its spread of investments rather than going for spectacular short-term gains from high-risk investments. The current dividend rate is 12 per cent, which is generally maintained on capital increased by periodic bonus and cash issues. An investment of sAustlooo in, 1975 would be worth sAustl3,3ol 10 years later if all dividends and proceeds had been

reinvested. This compares with sAustss2s for the average for the market and outperforms inflation by 5.4 times. The Argo performance over 10 years comes third in a rating of pooled funds operated by professional managers in Australia by consulting actuaries Mer-. cer Campbell and Cook.

Australian legislation imposes a 15 per cent tax deducted at source on dividends paid to overseas shareholders, but Francis Allison suggests that a refund may be allowed for tax-exempt funds in New Zealand. The principal shareholder of Argo is the South Australian State Government Insurance Commission, which owns 16.5 per cent of the company. The chief executive of Argo, Mr Rob Patterson, was in New Zealand to launch the company here.