KEY POINTS:
What is it called and what sort of savings product is it?
One of Westpac's KiwiSaver funds is a capital-protected fund.
What is the company behind it?
Westpac is one of the biggest banks in New Zealand. It has been one of the most successful in signing people up to its KiwiSaver scheme. Its investment subsidiary, BT Funds Management, is responsible for managing its KiwiSaver products.
What is the target market?
Westpac's Capital Protected Plan (CPP) is for people wanting a KiwiSaver fund that protects their capital but is exposed to shares.
What return does it offer?
No returns are offered. A third party will protect (not guarantee) your capital.
When was it launched?
Westpac's KiwiSaver scheme opened in July It plans to add a CPP each year. Investors who chose this option accumulate their contributions in a cash fund. This money is transferred to the CPP when it opens. The first one is scheduled to open on October 1, 2008.
What other products is it like or is it competing with?
This is the only capital-protected KiwiSaver scheme, but other managers offer this type of fund.
Is it long term, short term or medium term?
Long-term. Your money is locked in for 10 years.
What is the unique selling point?
It is the only capital-protected KiwiSaver fund.
How strong a stomach do you need for it?
Mild.
What's the hitch?
Normally a 10-year lock-in would be a hitch, but KiwiSaver money is locked in until retirement anyway. Having contributions accumulate in a cash account while you wait for a CPP to open is a negative.
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