Questions investors often ask
does the manager do?
The manager is responsible for the day-to-day operation of the funds
the money in accordance with each fund's primary objectives and
in accordance with the trust deed/constitution
the trust including preparing the accounts and looking after the
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.
Simply put, diversification is 'not putting all your eggs in one
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
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?
I access my money?
Yes, generally, you can access (withdraw) your
money at any time without penalty.
generally made within ten working days.
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
to remember that the dollar value of units can go down if the value
of the underlying investments decrease.
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.
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.
are income distributions?
'Income' is the money each fund makes through its investments.
Income can include:
payments from fixed interest investments
from the sale of investments in the funds.
As each fund
generates income, this may be paid out ('distributed') to investors
as 'income distributions'.
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?
is my investment taxed?
BT Investment Funds (Australian Dollar unit trust) - not tax paid
BT Classic Investment Funds (Australian Dollar unit trust) - not tax
For more information on Tax please refer to the relevant Product
do I know how much my investment is worth?
You can easily find out the current value of your investment at
any time by:
your financial adviser.
the BT Unit Price Line (0800 800 994).
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:
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.
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.