If you have money invested in term deposits, you may be wanting better returns. With a typical term deposit returning 1.25%, after inflation and taxes your real return will be close to zero. Or, you may be looking for a new home for your Bonus Bonds.
Pie’s newly revamped Conservative Fund
could be a fresh option for you - the fund aims to outperform term deposit rates, while still keeping a lower risk level than other managed funds.
Pie Funds CEO and founder Mike Taylor is leading the new strategy for the fund, which now invests in direct equities, international bonds and even New Zealand bonds.View performance
As at 31 July, the Conservative Fund generated 5-year returns of 4.7% (per annum, after fees and before tax), against market index returns of 0.5%. The fund’s strategy has just changed, so its original strategy of investing in term deposits and Pie’s equity funds is responsible for most of that return record.
However, Taylor and the Pie investments team are confident the solid term deposit returns achieved in the past are not coming back any time soon and the strategy changed to reflect that.
“Rates used to be over 5% and many Kiwis got attached to those returns and to term deposits,” Taylor explains.
“But you’re only getting 1.5% now, which won’t give you enough income to live off.”
Taylor says considering a Conservative Fund could be the best alternative for savers wanting to get better returns, without large exposure to risk.Pie’s Conservative Fund advantages include:
- Access to your money within 5 days (accessing funds on term deposits takes far longer and can incur break costs too)
- Regular quarterly distributions
- Still a lower-risk, low volatility managed fund option
- Diversity across cash, fixed interest and shares
- Aiming to beat term deposit rates
- Investment in direct equities, by Pie’s experienced active management team
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.