Investment Notes
By CUSTOS
i DID suggest on July 7 that most of the 196 igains in equity shares might be wiped oat', the Chancellor's corrective measures Vic.r I tougher than the market expected. This was', ' fact, seen on Monday of this week when tti Financial Times index broke through its Janul low of 305,9 and closed at 301.4, giving aver yields of 5.2 per cent. on dividends and 10.2 Pe, cent. on earnings. The market now seems bong' to test the 1960 low of 293.4 which was reachO on December 9. Next Tuesday will be 111 decisive day. All this should remind us WI investment in equities is a hazardous job wine; should be left largely to professionals. regrettable that the unit trust movement shall" have given the layman the impression til making a profit out of equities is child's 0)5 The Financial Times published a table last wee. showing the performance of the various 101 trusts over the twelve months ending June 30., is true that all these trusts did better than Financial Times index with the exception Orthodox, which invested a substantial part 1, its funds in fixed-interest securities, but the oni sizeable gain (42+ per cent.) was made by Insuic ance Units (now suffering, alas, from the alni/,' in insurance shares). The other good results.15, Consolbits, Investment Trust Units, Bank Urn Reserves Units—are now being shaved off °Is5il the others will now be showing probably a lel It was brave of Shield Units (managed by 14"1,i' childs) to offer for sale at 14s. 3d. this We",5 the 300,000 units which the managers have bie: forced to buy from retiring holders, but 5:750 people in their senses will subscribe on a f311,1,,5; market. It is only in these difficult times wo. investors seem to realise that unit trusts canni5 really compete with the old management truspi DI When markets are rising the capital gearing .0 (0 th the managed investment trust will give the o5.10 a shares better results and when markets are bills, 61 the managements give them better protection ' si skilful manipulation of their portfolios. , fl! Convertible Debentures have called the trustees' dream). This is gtnird teed repayment at 102 per cent. by 1970 an vertible debentures. One of the most attraePo is the CITY CENTRE convertible loan stock! obtainable at a few pennies over par (whicap equities. They will proceed with extreme eaull; and some of them will make a start with Cf; trustees 'will not be rushing headlong One happy result of the market slump Is ;AA convertible into the ordinary shares at 64s. between 1962 and 1964. The present only 51s., but the high price this year has u_:„. 65s. 9d. Another—but more speculattve4 HAWKER SIDDELEY 51 per cent. at 97 to nearly 6 per cent. This is convertible for anoti three years at 29s. 6d. a share. The present Pr. is 29s., but seeing that the company has reported an order, book of £366 million ,e0 highest figure ever) and that the chairman °jot the future 'with confidence,' it is not imPnss;„ 3 that the shares will be considerably higher few years' time. As I write a recovery in tt equity market is in full swing but it won! „J.! dangerous to follow it before hearing Mr. 1-1°'51, worst. A swingeing tax on dividend increase
to be expected. •
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