aera overnight
A mix of two independently managed funds with some cash allowing next day access.
what's in the mix?
Aera Overnight is a portfolio of New Zealand cash and cash or cash equivalent managed funds. It holds these assets on your behalf ("Underlying Assets"):
cash in bank (10%)
Custodian: NZ registered banks (BNZ, ANZ)
Type: Bank Account
What is an On-call Savings Account?
On-call Savings Accounts are readily available cash accounts that provide an interest return.
Underlying Asset Risk:
kernel Cash Plus Fund (45%)
Custodian: Kernel Cash Plus Fund (45%)
Type: Managed Fund
What is a Managed Fund?
A managed fund is a group of investments that is put together by a registered fund manager to provide a return. These fund managers are independent to Aera. When you buy units in a managed fund you are getting access to a wide range of assets. These assets are shown on the fund manager's website linked in the product disclosure documents above.
More information: The below links will take you to the underlying asset's publicly available disclosure material.
Underlying Asset Risk:
Nikko AM NZ Cash Fund (45%)
Custodian: Nikko AM
Type: Managed Fund
What is a Managed Fund?
A managed fund is a group of investments that is put together by a registered fund manager to provide a return. These fund managers are independent to Aera. When you buy units in a managed fund you are getting access to a wide range of assets. These assets are shown on the fund manager's website linked in the product disclosure documents above.
More information: The below links will take you to the underlying asset's publicly available disclosure material.
Underlying Asset Risk:
Aera's General Terms apply to all Deposit Accelerators. It's important that you read these on the link below.
PAST RETURNS
Since the start of this Accelerator the following annualised return has been paid to Aera customers.
Since inception - : 5.75%
The return on the Underlying Assets for the past 12 months are:
Kernel Cash Plus Fund - 6.56%
(year ending 30 June 2024)
Nikko AM NZ Cash Fund - 6.15%
(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 5.75% return, from an underlying asset return of 6.19%. The difference (0.44%) is the Custody Fee retained by the Aera platform.
Important: Past returns are not a guarantee of future performance.
HOW THE ACCELERATOR WORKS
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
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