AJ lures new clients
Armstrong Jones hopes to entice more people away from bank deposits and into managed funds with its new cash account.
Thursday, December 2nd 1999, 12:00AM
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The account, which went live this week, is designed to be competitive against banks and to act as a feeder fund for its unit trusts.
National sales manager Peter Mansell says the company has priced it in such a way that it is competitive against similar products.
The account has a tiered rate structure for on call deposits and currently offers 3.65 per cent for amounts up to $25,000, 3.9 per cent for amounts between $25,000 and $100,000 and 4.15 per cent above $100,000.
Phase two of the product will include a "restricted call" option where a premium is paid if the investor is prepared to provide several days notice for large withdrawals.
The fund, which is a special purpose company, has a AAAm rating from Standards and Poors.
While a number of other funds are able to juice up their returns by investing a portion of their portfolio in mortgages, the AJ account is strictly Treasury and bank bills as well as prime quality corporate bonds.
Where appropriate the account can invest in other financial products such as forward rate agreements.
While the account doesn't have a cheque book option, it does offer investors telephone transfer, direct credit and direct debit facilities.
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