According to recent Reserve Bank data, a series of cuts to the Official Cash Rate (OCR) has driven deposit rates to their lowest levels since 1966.
Low interest rates may be a boon to borrowers and trading banks, which continue to announce record profits. However, Kiwi depositors are being squeezed between loss of income and increased commodity costs, with significant inflation in key areas of expenditure such as municipal rates, power and foodstuffs.
Senior Trust’s investors are the heart of our business and we maintain a policy of setting income returns at a rate at least half as much again as comparable bank deposits. Since 2009 unit holders in the various retirement village portfolios have consistently enjoyed attractive income returns well in excess of bank deposit rates.
Although past returns are not a guarantee of future returns, Senior Trust intends to replicate this success with its latest retirement village fund, the Senior Trust Retirement Village Listed Fund (the Fund).
Low interest rates may be a boon to borrowers and trading banks, which continue to announce record profits. However, Kiwi depositors are being squeezed between loss of income and increased commodity costs, with significant inflation in key areas of expenditure such as municipal rates, power and foodstuffs.
Senior Trust’s investors are the heart of our business and we maintain a policy of setting income returns at a rate at least half as much again as comparable bank deposits. Since 2009 unit holders in the various retirement village portfolios have consistently enjoyed attractive income returns well in excess of bank deposit rates.
Although past returns are not a guarantee of future returns, Senior Trust intends to replicate this success with its latest retirement village fund, the Senior Trust Retirement Village Listed Fund (the Fund).
 | John Jackson, the Executive Director of Senior Trust Capital, reports that the demand for mortgage funding by operators of soundly run, well located villages has remained consistent. The Fund’s targeted income distribution of 6% per annum* (before tax) is underpinned by contractual loan interest revenue. John notes further that the manager of the Fund is intent on replicating the past performance of the various retirement village portfolios. The intent is to provide unit holders with a steady attractive income return backed by mortgages over soundly run, well located retirement villages to a maximum of 60% of the independently assessed security value of those villages. |
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