Investment Notes
By CUSTOS
EQum' shares remain firm, mainly on the long- term buying of the life funds and the unit trusts. It is significant that the public put more of their savings into unit trusts in January than in any other month in unit-trust history. The net investment in January came to £10 million and the total for 1965 was £59 million. It should, however, be appreciated that short term the out- look for equity income is bad. This was the view expressed by the chairmen of Cable and Wireless (Holding) and the Second British Assets Trust, the latter being heavily invested in America. The former said that in 1967 his trust is likely to feel the full effect of the dividend restrictions due to lower profit margins and the heavier taxation. The latter warned shareholders that he would have to draw on revenue reserves to maintain dividends and thought that it would be 1968 before American income began to offset the increased taxation. Investors outside the unit- trust movement are, of course, less interested in income than in capital appreciation. Recent mer- ger proposals have been whetting their appetite -the latest rumour is about BMC and LEYLAND- but the Board of Trade is interfering by referring mergers to the Monopolies Commission. Witness the sad effect upon AMALGAMATED DENTAL and ASSOCIATED FISHERIES.
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