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BT adds features to Westpac $100M cash PIE fund

26 June 2008

BT adds features to the Westpac $100M cash PIE fund

New features have been added to the Westpac Cash Plus Trust (Cash Plus), which has attracted more than $100 million of investment in the 13 weeks since its launch in February.

Announcing the new features to Cash Plus, Patrick Middleton, Head of Westpac Wealth, said the outstanding response to Cash Plus demonstrates an “enormous demand for a tax efficient, low risk investment with greater flexibility than a term deposit.”

Mr. Middleton said that Westpac’s New Zealand fund management business, BT Funds Management (BT), which manages Cash Plus, had introduced three new features this week.

“The key new feature is that investors will not pay any entry, exit or ongoing administration or management fees,” said Mr. Middleton. “All assets of Cash Plus will be invested in monthly compounding deposits with Westpac NZ – providing transparency to investors of the assets Cash Plus holds. Thirdly, an indicative daily interest rate for Cash Plus deposits with Westpac NZ will be published on – providing investors with greater visibility of Cash Plus returns on a daily basis. ”

Mr. Middleton said Cash Plus retains its Portfolio Investment Entity (PIE) status, which means that income earned from Cash Plus is taxed at an investor’s Prescribed Investor Rate (PIR). The maximum PIR tax rate is currently 30%. Paying less tax should mean higher returns for many investors than an everyday bank account.

Cash Plus has a minimum initial investment of $5000 with the ability to make additional lump sum investments of $1000 at any time or regular investments. Minimum one off withdrawals of $1000 can be made.

“The major benefit of a PIE fund is that income earned from the fund is taxed at an individual’s PIR. Since 1 April 2008, investors who are on a 39% or a 33 % marginal tax rate are taxed at 30% on their income from a PIE and will therefore enjoy a 9% or 3% gross tax saving respectively,” said Mr. Middleton.

For more information and a copy of the Westpac Cash Plus Trust investment statement visit and enter “Cash Plus Trust” in the Search box.


Disclaimer: None of the Westpac Banking Corporation ABN 33 007 457 141 (New Zealand Division) (Westpac), Westpac New Zealand Limited (Westpac NZ) nor any member of the Westpac group of companies (including BT Funds Management (NZ) Limited (BT)), guarantee the performance or return of the Westpac Cash Plus Trust or repayment of capital. The content of this material is for information purposes only and should not be relied upon without first seeking independent legal, financial and/or tax advice.

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