Home |Income Unit Trust
The Income Unit Trust is designed as a moderately conservative investment vehicle to provide enhanced income potential rather than capital gain. Investors should view the Unit Trust as a low/medium risk investment suitable for a 1-4 year investment time frame. The Income Unit Trust would also be suitable for an investor wanting a regular income similar to what is offered by traditional bank accounts, with the added advantage of potential capital growth.
The Income Unit Trust will invest in a diversified range of asset categories depending on the historical trends and the researched opportunities identified by the Manager. Emphasis will be on higher income-producing securities, cash and bonds. This will mean utilising opportunities in different international markets, particularly when they may be offering higher interest rates than we can get in New Zealand.
The Income Unit Trust is designed for the investor who wants their investment to achieve a steady stream of quarterly income or those that are looking for a conservative, shorter term investment.
Investors can choose to have distributions reinvested or paid quarterly into their bank accounts.
2010
Income Fund Update for the month of January
2009
Income Fund Update for the month of December
Income Fund Update for the month of November
Income Fund Update for the month of October
Income Fund Update for the month of September
Income Fund Update for the month of August
Commentary for the Month of August
The Income Unit Trust had some good gains in the underlying investments, particularly oil, as well as a good income stream from the many high-yielding investments we've found - particularly the Canadian oil and gas Royalty Trusts. However, the rising dollar wiped out all that and left us with a nil return.We keep looking for, and occasionally finding, opportunities to enhance the yield and have taken a slightly bigger position in gold in the last couple of weeks as gold looks to be staying above $1,000 oz. We've also taken a small short position in China as the Chinese government are pulling back on the stimulus money that has been fueling their economy over the last several months. It seems most of the stimulus cash has gone into speculation on the share market and the property market so now they're trying to stop that speculation. Without counting the stimulus money the 8% reported GDP for China would actually be only 2%, far below what they need to sustain employment.
We're happy with the reasonably low volatility of the Income Unit Trust given the high volatility in most markets lately and look forward to the NZ dollar to stop going up so some of our investment gains can be reflected in the valuation of the portfolio.
Income Fund Update for the month of July
Income Fund Update for the month of April
Income Fund Update for the month of March
Income Fund Update for the month of February
Income Fund Update for the month of January
2008
Income Fund Update for the month of December
Income Fund Update for the month of November
Income Fund Update for the month of October
Income Fund Update for the month of September
Income Fund Update for the month of August
Income Fund Update for the month of July
Income Fund Update for the month of June
Income Fund Update for the month of May
January was an interesting month. Turmoil began in the share markets while gold recovered some of it's December losses only to head down again from the middle of the month. Balancing that on the positive side we had some small gains from the weakening NZ dollar. Roughly speaking we lost about 1% in each fund from the market drops and gained about 2% from the currency.