A longer notice corporate bond mix with a small amount sitting in an on-call bank account.
Aera Ninety is a portfolio of New Zealand cash and corporate bonds. It holds these assets on your behalf ("Underlying Assets"):
Cash in Bank (10%)
Custodian: NZ registered banks (BNZ, ANZ)
Aera's General Terms apply to all Deposit Accelerators. It's important that you read these on the link below.
Since the start of this Accelerator the following annualised return has been paid to Aera customers.
Since inception - : 7.15 %
The coupon return on the Underlying Assets for the past 12 months are:
IFTHC- 7.78%
(year ending 30 June 2024)
Cash in NZ Bank accounts - 4.75%
(year ending 30 June 2024)
For the year ended 30 June 2023, if you had your savings in this Accelerator for the entire period you will have received a 7.15% return, from an underlying asset return of 7.48%. The difference (0.33%) is the Custody Fee retained by the Aera platform.
Important: Past returns are not a guarantee of future performance.
Custody:
The Underlying Assets are held by Aera 22 Nominee Limited as bare trustee on behalf of you, the customer. When you transfer money into a Deposit Accelerator you will automatically be allocated units of the Underlying Assets. Conversely, when you transfer money out of a Deposit Accelerator the amount of assets we hold on your behalf will be reduced.
Aera may use a number of different sub-custodians, such as Nikko Asset Management New Zealand Limited, Kernel Wealth Limited or Aera 22 Opco Limited (who have appointed sub custodian Forsyth Barr Custodians Limited).
Custody Fee:
Aera charges a daily fee (known as the "Custody Fee") to enable Members' access to purchase Underlying Assets. This fee is the difference between the return over time of the Underlying Assets and the Targeted Daily Rate and will appear as a lower return each day than what the Underlying Assets will generate for the same period. Aera may review the Custody Fee to reflect the costs of providing this service. Changes to the Custody Fee will result in changes to the Targeted Daily Rate.
The Custody Fee payable to Aera includes all costs borne by Aera relating to the underlying assets.
Notice Period:
There will be a delay between when you advise us to dispose of Underlying Assets and the time that your money will be available to you in your Everyday wallet. (This is the "Notice Period"). The Notice Period includes expected bank and payment processing times as well as the time needed to dispose of the Underlying Assets as instructed. Any unexpected delays due to reasons outside of Aera’s reasonable control will be advised to you as soon as practicable.
Variable Return:
The Targeted Daily Rate is a per annum variable rate that may go up or down depending on the performance of the Underlying Assets and the Custody Fee charged by Aera. The rate applicable for each day will be clearly shown on the relevant account screen linked from your home screen, and the daily return will be deposited to your account daily.
Aera makes no assurance or representation that the Targeted Daily Rate is guaranteed for the life of the product or for the Notice Period. Aera will advise any changes in the Targeted Daily Rate by email or other suitable notification (which may include push notification or SMS). The Targeted Daily Rate may change while you are within the Notice Period.
How a Trade Happens:
When you instruct us to purchase Underlying Assets on your behalf we will record your order and aggregate it with other orders on the platform. We will first attempt to fill your order from other customers' offsetting orders on the platform. If there is no corresponding order on the platform we will buy or sell Underlying Assets on the open market.
Aera (Aera 22 Opco Limited) may at its discretion use the platform to place its own buy or sell orders at an asset's carrying or a fair future cashflow value. This may occur at any time.
When we buy or sell on the open market we will instruct a third party broker to achieve the best price on a given open market transaction that allows the completion of the trade within a reasonable timeframe. In the case of a bond this timeframe should be no more than 10 working days (SLA). In the case of bonds, this third party will be a NZX participant. In the case of a managed fund, a trade will occur at the price that is available to any customer on the day of settlement. This is ordinarily between 1-3 days.
Following the best price policy, in the event that a trade does not clear prior to the end of a notice period we will notify you that the asset is illiquid and request your instruction. This will likely mean either a re-approach to the market on a “best execution” basis or to hold the asset until its maturity, or a later date.
Risk:
Instructing Aera to purchasing Underlying Assets on your behalf comes with risk. There is no guarantee or representation made by Aera that the value of the Underlying Assets will increase and you are subject to the same risk as purchasing the Underlying Assets directly, including the chance of losing the money you started with.
Further to the disclaimers set out in our General Terms, you must accept as understood How the Accelerator Works.
2024-09-12
Timeline assumes the couple commences saving for a deposit and compares Aera's on-call account Deposit Accelerator rate (5.95%) with a major New Zealand bank’s on-call savings rate (4.5%) as at June 2nd 2023.
House purchase price saving assumes that by purchasing a property sooner, the price will have been subject to lower price growth over time. This calculation is based on the future purchase price growth range based on the historical 30 year compound growth rate of 6.8% (REINZ).
Target property starting price assumed to be March 2023 REINZ median Auckland house price ($1,000,600).
Sarah and David are assumed to earn $150,000, approximately the average household Auckland income ($153,000 as at March 2023, Corelogic/Infometrics).
Sarah and David are assumed to contribute 6% of gross salary to Kiwisaver, compounding 5% per annum gross and contribute a monthly deposit savings rate of approx 15% of gross income ($1875 per month).
Past performance of house price appreciation is not indicative of future performance. House price valuations may go up as well as down.
The Overnight Deposit Accelerator is perfect for when you need fast access to your funds. With a 1 day notice period, your funds are never out of reach.
The underlying assets in the Overnight account consist of cash at registered New Zealand banks and cash equivalents (short-term Government and institutional bonds).
These Terms and Conditions are to be read in conjunction with the full Aera Terms of Use and are current as at 2 May 2023.
Aera’s Overnight is a mix of cash held at a registered New Zealand Bank (15%) and a Cash Fund (85%) (a portfolio of cash and cash equivalents managed by a licensed NZ fund manager) (”Underlying Assets”).
The Underlying Assets are held by Aera 22 Nominee Limited as bare trustee on behalf of you, the customer.
When you transfer money into Aera Overnight you will automatically be allocated units of the Underlying Assets. You do not need to do anything further to start generating a return.
Aera Overnight has a notice period that is advised to you at the time of opening the account.
This means that there will be a delay between when you advise us to transfer out of the Underlying Assets to your Everyday account and the time that your money is available to you. The Notice Period is intended to cover expected bank and payment processing times however any unexpected delays due to reasons outside of Aera’s reasonable control will be advised to you as soon as practicable.
The Targeted Daily Rate is per annum variable rate that may go up or down depending on the performance of the Underlying Assets. The rate applicable for each day will be clearly shown on the relevant Aera Overnight page linked from your home screen, and final interest amounts will be deposited to your account daily.
Thirty is great for when you’re ready to commit funds for slightly longer and roll them over. With a 30 days notice period, your funds can be stowed away earning higher interest but still close at hand.
The underlying assets in a Thirty account consist of a mix of cash and short-dated bonds. When a large institution or government entity wants to borrow funds they often issue a bond. These entities are responsible for repaying those bonds over time as well as paying out a return which can be higher than what you might get from cash in a bank account.
Aera makes putting your cash to work through a mix of these types of assets easier by breaking down this complexity into a daily return. This gives you the benefit of achieving a potentially higher return when compared to having your funds just sitting in a bank account.
These Terms and Conditions are to be read in conjunction with the full Aera Terms of Use and are current as at 2 May 2023.
Aera’s Thirty accelerator is a portfolio of cash (20%) and short-dated bonds issued by Mercury Energy 07/24 (60%) and Heartland Bank 04/24 (20%), (”Underlying Assets”).
The Underlying Assets are held by Aera 22 Nominee Limited as bare trustee on behalf of you, the customer.
When you transfer money into Aera Thirty you will automatically be allocated Underlying Assets. You do not need to do anything further to start generating a return.
Aera Thirty has a notice period that is advised to you at the time of opening the account.
This means that there will be a delay between when you advise us to transfer out of the Underlying Assets to your Everyday account and the time that your money is available to you. The Notice Period is intended to cover expected bank and payment processing times however any unexpected delays due to reasons outside of Aera’s reasonable control will be advised to you as soon as practicable.
The Targeted Daily Rate is a variable per annum rate that may go up or down depending on the performance of the Underlying Assets. The rate applicable for each day will be clearly shown on the relevant Aera Thirty page linked from your home screen, and final interest amounts will be deposited to your account daily.
