Money at work: Celsius New Zealand Income Fund Series 1

What is it called and what sort of savings product is it?

The Celsius New Zealand Income Fund Series 1 is a share-based fund which generates income.

What is the company behind it?

The fund is being promoted here by sharebrokers Macquarie, but the fund is managed by a division of Barclays Bank. It invests in one of Barclays Irish domiciled funds. The bank has a AA Standard & Poors rating.

Who is the target market?

Investors wanting some international share exposure.

What return does it offer?

Celsius is looking to pay interest at 9 per cent annually. It has been structured to comply with portfolio investment entity tax rules.

When was it launched?

The fund opened on November 28, and will close on Friday.

What other products is it like or is it competing with?

One view is it is an income fund with a good yield. Another view is it's part of a share portfolio as its underlying investments are equities.

Is it long, short, or medium term?

This is a medium to long-term investment.

What's the unique selling point?

The fund invests in strong-yielding international shares and is managed so there is protection on the downside.

How strong a stomach do you need for it?

Mild.

What's the hitch?

These types of protected funds have low risk. The biggest risk is a complete disintegration of the equities markets.

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