BT Financial Group has announced a capital protection product that allows Australians the opportunity to generate growth in their retirement or investment portfolio while preserving a minimum outcome at the end of an agreed term.
BT Financial Group has spent over two years working with advisers and investors to build a new style of capital protection that allows investors to protect their investment and also gives them flexibility and choice in how much of their portfolio they want protected and for how long. Investors also have the ability to make withdrawals or switch off the protection at any point.
“Advisers and clients have been crying out for retirement products that preserve capital when markets fall but still provide opportunity for growth on the upside,” said Rodney Greenhalgh, head of retirement at BT Financial Group.
“Since the GFC we have seen a flight to safety as retirees who saw no alternative turned away from market exposure and re-weighted their portfolios to cash.”
Over half (53%) of Australian pre-retirees aged 50-64 are holding cash to protect themselves against a capital loss and 47% are only holding cash as a temporary strategy until the markets improve.* This is clearly understandable but it may mean that they miss out on opportunities to grow when markets perform well.
Wrap Capital Protection provides comfort to risk adverse clients who want and need the opportunity for growth without the risk or eroding their original investment or the threat of being cash-locked.
Mr Greenhalgh who is responsible for driving, implementing and executing the Group’s retirement strategy said “We have designed this in collaboration with advisers and investors every step of the way. What we have built is a unique capital protection product that is available on BT Wrap that is easy for advisers to use and gives clients a known minimum outcome with the opportunity for growth without the restriction of being locked-in.”
Wrap Capital Protection is available today on over 80 existing managed funds on the Wrap, Wrap Essentials, Super Wrap and Super Wrap Essentials platforms. It provides transparent reporting and simple desktop activation.