Right from the start the unit trust movement has demon-
strated a striking adaptability to investors' needs—and desires—and one cannot therefore be surprised that current conditions should bring forth a new trust catering for investors in search of a moderate return in the fixed interest field. The portfolio of this trust, the Domestic Priority Income. Trust, consists of preference shares in nearly too companies. The aggregate issued amount of the shares included in the portfolio• is over £115,000,000 and analysis shows that, after allowing for dividend and interest on prior ranking securities, the dividends on the securities comprising the initial portfolio are, on the average, covered 71 times by the profits of the last full year. That the preferences have been carefully chosen from the standpoint of security is clearly indicated by the fact that securities ranking ahead of those in the portfolio amount to only £47,000,000, whereas capital ranking behind, general reserves, &c.; total £425,000,000.
Here, then, is a well-spread preference holding made available, through the unit plan, to investors of small or moderate means. At the current price of 9s. 9d. per unit, a buyer acquires a stake in this diversified portfolio which will yield him an income of 4.1 per cent. Preference shares, as I have often reminded investors, are not gilt-edged, but for those who cannot afford the luxury of 31 per cent. and under this is an opportunity of getting an extra I per cent. without incur- ring arty serious capital risks.
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