By NZPA
Wednesday 1st February 2006 |
Text too small? |
Who is the company behind it?
The fund is promoted by TOWER Managed Funds, part of the NZX-listed financial services firm.
Who is the target market?
MortgagePlus is for people looking for a low risk investment that will provide a competitive return and regular income.
What return does it offer?
This fund has been around for a long time and has produced a gross return of 7.73% annually since 1990. In the 12 months for December 31 its returns were 7.29% and over the past three years it has been 6.38% annually.
When was it launched?
June 1990.
What other products are they like or do they compete with?
A fund like this has lots of competition including other fixed interest managed funds, finance company debentures and bank deposits.
Is it long term, short term or medium term?
The minimum timeframe for MortgagePlus is one year.
What is the unique selling point?
This fund differentiates itself by offering a guaranteed gross minimum return, with the rate declared at the start of each quarter. That way you know in advance the minimum return you will get. Currently it is offering 7.80% for the quarter ending March 31.
How strong a stomach do you need for it? (in other words, what's the risk profile?)
This is a pretty low risk sort of fixed interest fund.
What's the hitch?
Main hitch is a 1% fee if money is withdrawn in the first three months. The guaranteed minimum return is for the quarter, not the life of the investment. Like most managed funds there can be a notice period between withdrawal requests and payments. Currently there is no notice period.
No comments yet
Spark New Zealand appoints new director to the Spark Board
AFT to announce full year results on May 23 2024
CRP - Korella North Takes Another Two Steps Forward
May 3rd Morning Report
ASB workers to strike as bank proposes an effective pay cut
Rising tides, sinking stocks: study explores cost of climate change
May 2nd Morning Report
AGL - Change in Senior Management
Devon Funds Morning Note - 01 May 2024
Rick Christie to step-aside as a non-executive director