Investing Fundamentals
What is a managed investment?
4 Asset classes
Choosing the right investment
Risk & return
Tips for investing
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Common questions
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Common questions

Questions investors often ask

What does the manager do?
The manager is responsible for the day-to-day operation of the funds including:

  • investing the money in accordance with each fund's primary objectives and in accordance with the trust deed/constitution
  • administering the trust including preparing the accounts and looking after the register
  • calculating unit prices
  • reporting to investors
  • customer service.

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What is the trust deed?
The trust deed sets out the rules which govern the operation of a unit trust or superannuation plan and the rights of investors in those products.

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What is diversification?
Simply put, diversification is 'not putting all your eggs in one basket'.

For example, today the sharemarket might be out-performing the other sectors but tomorrow the bond market may be more favourable. By investing in more than one asset class you are not only spreading the risk of you investment, your are also gaining greater exposure to potential returns.

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What is BT Link?
When you make your first investment with BT Funds Management you have the opportunity to benefit from the BT Link service we provide.

BT Link is a toll free telephone transaction service that connects you personally with a member of our Client Services team. It is not an automated information service.

When you join BT Link, you have two options:

  • Option one lets you switch between funds and make withdrawals
  • Option two lets you switch and withdraw as well as make additional investments directly from your bank account.

Want to know more about BT Link?

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Can I access my money?
Yes, generally, you can access (withdraw) your money at any time without penalty.

Payments are generally made within ten working days.

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What is a unit trust?
A unit trust is made up of one or more investment opportunities called 'funds'. When you invest in one or more of these funds your investment dollars are 'pooled' together with those of other investors. The money you invest in each fund entitles you to a share of that pool - this is expressed as a number of 'units'. Each unit represents a beneficial interest in assets of the trust as a whole and does not give the unitholder an interest in any particular property of the trust.

As the value of the underlying investments (shares, bonds, property, cash) in each fund changes, the dollar value of your units will rise and fall accordingly.

It's important to remember that the dollar value of units can go down if the value of the underlying investments decrease.

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What are sector funds?
Sector funds generally invest in one main asset class. You can achieve diversification with these types of funds by choosing to invest in more than one sector fund. Your fund manager can also achieve diversification within each sector fund by investing widely within that particular sector.

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What are balanced funds?
Balanced funds invest in a range of different asset classes. Investing in these funds is one way of achieving diversification without having to choose the mix yourself.

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What are income distributions?
'Income' is the money each fund makes through its investments.

Income can include:

  • Dividends from shares
  • Interest payments from fixed interest investments
  • Profits from the sale of investments in the funds.

As each fund generates income, this may be paid out ('distributed') to investors as 'income distributions'.

However, the funds may not necessarily make distributions every quarter. The amount you receive as a distribution from each fund depends, firstly, on whether or not the fund generates income for that quarter and, secondly, on how much income is earned.

Want to know more about distributions?

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How is my investment taxed? 1

BT Investment Funds (Australian Dollar unit trust) - not tax paid

BT Classic Investment Funds (Australian Dollar unit trust) - not tax paid

For more information on Tax please refer to the relevant Product Disclosure Document

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How do I know how much my investment is worth?
You can easily find out the current value of your investment at any time by:

  • Calling your financial adviser.
  • Phoning the BT Unit Price Line (0800 800 994).
  • Checking in the newspaper. Unit prices are usually printed in the major New Zealand weekend papers although these may not be as up-to-date as the prices available through your adviser or BT. Make sure you look under the 'exit' or 'sell' price column only.

To work out the dollar value of your investment:

Multiply the number of units you currently have in a particular fund by the exit/sell price for that fund to get the current value of your investment in that fund.

If you hold units in more than one fund you will need to repeat the equation for each fund you are invested in.

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1 This information is subject to the Terms of use and is based on current laws and their interpretation. The levels and basis of taxation may change. The application of taxation laws depends on an investor's individual circumstances. Individuals should seek professional advice on the implications of investing and should not rely on this information which should be used as a guide only.