Cash rules on BT wraps
Chris Freeman
BT Financial Group has introduced term deposits on its BT Wrap and BT SuperWrap platforms, heeding customer demand for “low-risk, income-generating products”.
Wrap investors will have access to 90, 180 and 365-day term deposits offered by BT parent company Westpac at rates of 7.9 per cent, 8.1 per cent, and 8 per cent respectively.
BT’s head of wrap solutions Chris Freeman said the “recent market volatility had slowed the allocation of cash into traditional asset classes of property and Australian and global equities”.
“There has been an increase in cash holdings by wrap investors that is currently 70 per cent higher than this time last year, leading to the decision to introduce the term deposits,” he said.
In addition, cash holdings in BT’s wraps had increased by more than 122 per cent in the first half of last year, as advisers and investors raced to meet the June 30 ‘million-dollar’ deadline.
The minimum investment in the term deposits — the interest rates of which will be set each week and published on BT Wrap desktops — will be $75 000.
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