RaboPlus slashes entry fee on managed funds
RaboPlus has slashed its entry fee on managed funds as the economic climate makes diversified assets more attractive than returns offered by deposit rates.
Tuesday, June 16th 2009, 8:13AM
by Paul McBeth
The internet-based bank which specialises in investments and savings will make its money from trail fees from the investment funds whose products it sells. The managed funds aren't a big part of the company's business, but they round out the products available to their customers, according to general manager Mike Heath.
"Kiwis aren't big on managed funds - ever since the ‘87 ‘88 crash people have been scared of anything equity-related," he said. "We believe people are looking at them more, and we want to help them."
RaboPlus sells managed funds for AMP Capital, Asteron, AXA, Brook, ING, and Tower, along with its cash advantage fund PIE and other longer-dated term deposits.
RaboPlus Australia dropped its entry fee for managed funds on its online platform at the end of last year.
The credit crunch last year saw interest rates tumble as central banks moved to shore up dwindling liquidity. As a result, banks were forced to offer lower lending rates and cut returns on term deposits.
Paul is a staff writer for Good Returns based in Wellington.
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