FIXED TRUST CERTIFICATES.
Increasing interest seems to be taken in the process of industrial investments along the lines of Fixed Trusts. I have before me at the moment the brochures both of the British Empire Fixed Trust Certificates, Series " A," and the Commercial Fixed Trust Certificates. In the former case the trustee is -Midland Bank Executor and Trustee Com- pany, and in the latter case the National Provincial Bank. In both cases it will be seen, therefore, that the interests of the investors are guarded by competent authorities. On several occasions I have referred to the general principles governing these trusts,- and, while they differ in -certain respects, the general principle is common to all of the investor purchasing units and sub-units in a trust holding a list of sound industrial securities, the public being fully informed as to the group of stocks selected, so that he or she is able to obtain a very good idea of the manner in which the risks are spread. Moreover, the brochures issued .by these varicius
m
trust companies give a great deal of useful fdrmation with regard to the securities themselves. The whole idea, of course, is that of averaging risks, so that, while it is true that the investor might sometimes obtain higher yields by choosing -for himself one particular security and placing his. All in that direction, he is able, for the most part, by purchasing these sub-units of Fixed Trust Certificates, to obtain yields -usually
•
(Continued an page 142)
Financial Notes
(Continued from page 140.) ranging' from something under 5 per cent. dawn to a much lower yield according to the price of the sub-units as quoted from day to day in the newspapers, the point being that the risk of default or even of a heavy fall in income is reduced to the minimum. In- some cases I am inclined to think that prices now stand at a fairly high level, but it is still possible to obtain the sub-units in some of the trusts at -a price giving a return of about 41 per cent., which in these days must be regarded as a good yield.
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