Article written by Pie Funds – 10th December 2020
With term deposit rates with most New Zealand’s major banks now under 1%*, the scene is set for many term deposits to earn next to nothing, or even go backwards after tax, in 2021.
Whether it’s a bull or bear market, you don’t want your term deposits locked in. You want to be able to respond quickly to opportunities and be earning decent returns.
Pie’s Conservative Fund offers you a potential term deposit alternative.
The Fund’s objective is to preserve capital with some growth and outperform the market index by investing about 80% in cash and fixed income, and 20% in equities (shares) and other financial products. The investment team aims to outperform term deposits.
View Conservative Fund
Advantages of Pie’s Conservative Fund include:
An experienced investment team
Pie’s CEO and Founder Mike Taylor is the portfolio manager of the Conservative Fund. You’ll benefit from Mike and his team’s investing and active management experience.
Still a lower-risk, low volatility option
The Conservative Fund has diversity across cash, New Zealand and international fixed interest, and international equities (shares). Read more about the target investment mix here.
Regularly quarterly distributions
For investors seeking a regular source of income, the Pie Conservative Fund pays quarterly distributions. Investors can be paid these directly, or have them reinvested back into their fund (known as the compound interest effect). We can also tailor withdrawals to suit investors’ needs to set a specific withdrawal amount or frequency from the fund i.e. monthly withdrawals of $500 to supplement government superannuation payments.
Ongoing liquidity without break costs
Get access to your money within 5 days with no break costs or associated fees. Accessing money on term deposits takes far longer and can incur break costs too. There’s nothing more frustrating than needing money for an emergency but being told by your bank that you can’t access it, despite it being held in cash.
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*BNZ and ANZ 1-year term deposit rate 0.85% or 5-year term deposit rate 0.90%, correct as at 10 December 2020: Sources: https://www.bnz.co.nz/personal-banking/investments/rates#rates-and-fees?link=rates https://www.anz.co.nz/rates-fees-agreements/term-deposits/ Westpac 1-year term deposit rate 0.80% or 5-year term deposit rate 0.90%, correct as at 10 December 2020 Source: https://www.westpac.co.nz/managing-your-money/resources/interest-rates/term-investments/
To download our product disclosure statements, go to www.piefunds.co.nz. Past performance is not an indicator for future returns. This information is general in nature only. You may wish to discuss with an expert before relying on it.