Were s Investment Trust, Ltd.

NZ Truth, Issue 1238, 22 August 1929, Page 20

Were s Investment Trust, Ltd.

(By "Fiat Lux."); This concern was the first Investment Trust Company to be formed m Australia and commenced operations m July of 1928.

THE first annual report arid statement of accounts has now been i issued, and shows that on a paidup capital of £187,000 the net profit available for dividend amounts to £1 0 331. This does not include the profits on changes of investment amounting to £4730 which have. been carried to the investment fluctuation reserve. A 6 per cent, dividend has been declared for the year, which must be accounted an excellent performance for the opening period, and will probably be increased slightly for the future when the concern gets into full swing. The basic idea of an investment trust is absolute and unimpeachable security of the shareholders' capital. This being so, people who, put their money into such concerns must not expect sensational dividends. If they do they are going to be sadly disappointed, .but their capital will, so far as human foresight can provide, be kept intact under all conditions. It is usual m such concerns to devote a considerable portion of the

' earnings of the early years to building up substantial reserves, so that investors' returns shall be regular and reliable and unaffected by market fluctuations. To this end reserves of £3000 have been created, and m addition the whole of the preliminary and flotation expenses amounting to nearly £4000 have been written off out of the year's profits. At June 30 last the Trust held 205 investments of a value of £261,636. The nominal capital of the Trust is £1,000,000, m 5/- shares, but only 750,000 shares have so far been issued. The directors have now decided to issue a further 750,000 shares at par to be offered to present shareholders on the basis of share for share. This will bring the paid-up capital to £375,000, all of which the capable management has shown it can use to advantage. For permanent holding these shares should prove a very satisfactory in- | vestment, the value of which ' will I gradually improve as the reserves are I built up.