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Reserve Bank more serious about negative interest rate

Reserve Bank more serious about negative interest rate

Groundwork shows Reserve Bank getting more serious about

negative interest rate.

Confidence in the retirement sector, coupled with a low yield environment in so many other sectors, that prompted the launch of a further investment offer from Senior Trust Management Limited, the Senior Trust Retirement Village Income Generator (“Income Generator”), which is aimed at meeting the ever-increasing demand from depositors who want a fair return to support their lifestyles.

​We believe that the premium retirement villages that the Income Generator lends to are providing superior homes and environments to an increasingly discerning segment of retiring New Zealanders - those that want something better than the average - past experience suggests that this top end of the market will continue to perform well.



PRESS RELEASE

Cutting the OCR below zero would benefit borrowers including homeowners who could see mortgage rates fall by up to about 1 per cent, at the expense of savers who have already seen interest rates on term deposits and other cash savings hammered.​The Reserve Bank has asked banks to update their system to allow for a negative OCR by the end of this year, though Governor Adrian Orr has given the bank’s word to keep the rate at 0.25 per cent until March.​- Tom Pullar-Strecker Senior Business Reporter Stuff 05:00, Aug 14 2020

"Governor Adrian Orr has given the bank’s word

to keep the rate at 0.25 per cent until March."

The Income Generator has agreed loan terms with four well located premium retirement village entities which will underpin the 6%pa pre-tax targeted return.

 

Further lending opportunities are being investigated and the Income Generator is actively seeking applications to invest to meet the growing demand from Retirement Village entities seeking funds to grow their villages.

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When investing, past performance is no guarantee of future performance. A minimum subscription of $1,000 applies. Applications will only be received on the application form supplied with the Product Disclosure Statement (PDS).

 

Please read the PDS before investing. Note that the definition of "Retirement Village" used in the PDS is wider than a village which is registered under the Retirement Villages Act and includes other types of residential accommodation for persons above a defined age. The latest information about our current loans is set out in the ‘Table of Loans’ document on the Disclose Register.

Our distribution policy is set at the discretion of the directors and is not a fixed rate of return. Payment of distributions is not guaranteed. We recommend you seek financial advice relevant to your circumstances.
 

*Senior Trust Retirement Village Income Generator Limited is not licensed by a New Zealand regulator to provide the service of issuing Shares. Senior Trust's registration on the New Zealand register of financial service providers or membership of the Financial Services Complaints Ltd (FSCL) - A Financial Ombudsman Service does not mean that Senior Trust is subject to active regulation or oversight by a New Zealand regulator.

SENIOR TRUST RETIREMENT VILLAGE INCOME GENERATOR LIMITED

Registered Office:

Level 1, 20 Beaumont Street, Freemans Bay, Auckland, 1010

Postal Address:

The Directors, PO Box 113120, Newmarket, Auckland, 1149

Copyright © Senior Trust. All rights reserved.

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