WARNING TO INVESTORS

Evening Post, Volume CXV, Issue 74, 29 March 1933, Page 10

WARNING TO INVESTORS

The chairman of the Investment Executive Trust of New Zealand,, Limited, in Ms annual report to debenture holders ga.ve some valuable information to investors whose chief concern is the safety of their capital. He stated, inter alia:— ~' ■, '■ SPECULATION AND GUESSING DISPLACED BY GROUP INVESTING. "I think I am fully justified in saying that the Investment Executive Trust of New Zealand, Limited, has brought to investors in the Dominion a service which insures their investments against loss, and also insures an. adequate and continuous profit. ■ ■ . ■ "Its objects are to eliminate the haphazard 'hit or miss' methods of speculation, 'and to- substitute a plan of group investing,i based on assets values, not' necessarily Stock. Exchange prices. The adoption of, this plan in Great Britain came two generations ago, and it has since established itself as a sound method of, protecting capital and income. In the light of experience, T am convinced that the vast majority of those with means, little or much, to invest can improve their financial positions by converting their existing investments into investment trust securities. There has been too much invest-' ing without a knowledge of scientific investment principles, which must be carefully examined and understood before there can be any assurance of capital safety and adequate income. "Intelligent selection ,requires the aid of .'the specialist. The aggregate experience of the trust's specialists, supported by statistics, financial statements, and records covering all rAasea of investment factors, extends' over many years, and their knowledge is made available to intending of actual investors.' .' . . . • . ■ -QUOTATIONS ABOVE PAR ON ■ ■ LONDON EXCHANGE. ' "I stated previously that investment trusts have been established for over 50 years in Great Britain, and are now recognised as ' probably the safest medium for investing capital. Proof of this statement is evidenced, by the fact that on the London Stock Exchange in December, last 117 investment trust stocks and securities were quoted above par, many of .them from 50_to 100 per cent, above their original price, and even at these' prices the financial editor of a London journal, in a recent issue, referring to investment trusts, writes:— . ■ ■ . ' .

The benefits have been demonstrated in both good times and baa, ana they have shown astonishing recuperative powers' after perioas of depression. In my opinion there are toaay excellent bargains to hi found among investment trust stocks. I know of at least one trust stock which can be purchased at half its break-up .-worth. "Tncidontally, he further states:— Stockbrokers, ancl banks,, it is to be feared, sometimes aavise against investment trust stocks on grounds of persoifal interest, for the investment trust stockhoiaer is a permanent holder ana the stockbroker earns his bread by frequent changes.

"I merely ' quote the statement so that intending investors may keep these words in mind when voluntary advice is offered to- them."—Published by arrangement.