KEY POINTS:
What is it called and what sort of savings product is it?
This is the Cash Advantage Fund for short-term investments.
What is the company behind it?
AMP Capital manages the fund and invests the money into term deposits with Rabobank, which has an AAA Standard and Poor's rating. One version is available in the market through RaboPlus called the Cash Advantage Fund; other versions are marketed through AMP Capital and advisers.
Who is the target market?
Everybody. Everyone should have a high-yielding place to park money.
What return does it offer?
The blackboard rate is 8 per cent. But because this fund complies with the new portfolio investment entity (PIE) tax rules, the rate varies depending on an individual's marginal tax rate. For a 39 per cent taxpayer the gross rate is 8.79 per cent. When new tax rates come into effect next year it will be 9.18 per cent for these people.
When was it launched?
November 26.
What other products is it like or is it competing with?
This fund is up against all other cash investments, including bank term deposits.
Is it long term, short term or medium term?
It's for short-term investments.
What is the fund's unique selling point?
It's the first cash fund structured under the new PIE rules.
How strong a stomach do you need for it?
Very mild.
What's the hitch?
This fund doesn't have a lot of hitches. It's simple and does what it says.
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