“Our customers have been asking us for more investment choices so we have looked for a better way," Head of Wealth distribution Ben Elliott says.
Expand IV offers an alternative way for customers to gain exposure to growth assets to diversify their portfolio but also minimises risk.
Expand IV is a six-year investment opportunity with Westpac, however the returns are linked to the performance of a basket global sharemarkets indexes (US, Europe, UK and Japan) on an equal weighted basis.
“At maturity, investors receive back their original investment plus 100% of any increase in the value of the basket of international sharemarket indexes to which the return on the product is linked.
“In addition, Expand IV offers a pre-tax bonus return of 10% of the original amount they invested. The product offers investors an alternative risk and return equation whereby while the total return may not be as high as investing in international shares directly, investors have the comfort of knowing that they will at least get their original investment back plus a pre tax bonus return of 10% of the amount they invested.
“This provides some comfort to investors that should the basket of sharemarket indexes to which the return on the product is linked not rise over the investment period that they will receive some return. Plus, because the investment and returns are denominated in New Zealand dollars there is no exposure to currency changes whilst still investing in off-shore markets,” Elliott says.
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