Trust threshold down

Press, 12 October 1988, Page 37

Trust threshold down

PA Wellington The Bank of New Zealand has lowered the threshold of entry to its 15 trusts. The threshold of entry has been dropped to $lOO, from $2OOO, and investors can opt to make contributions of at least $lOO at intervals of their choosing, under the BNZ's new Trustplan package. The BNZ says the package will allow any investor to take out an over-

draft on request for up to half the value of the units held. The package covers all of the BNZ trusts. Investors will continue to face a 5 per cent charge on the value of each contribution made. The senior manager of BNZ Investment Services, Mr Rod Carr, said that was the standard fee on unit trusts. Total investment in New Zealand trusts was now about $450 million, of

which the BNZ had about SBOM, Government Life’s Tower Trust SI2OM, and NZI Corp SIOOM, Mr Carr said.

The flow of funds into the BNZ trusts had been steady at about $500,000 a week from last April until recently, he said. In recent weeks, the flow had stepped up to be between $750,000 and SIM, perhaps reflecting greater confidence about the economic trend.