Fund approved under Govt deposit scheme

MEDIA RELEASE

March 5, 2009

Cash Advantage Fund approved under Government deposit guarantee

The RaboPlus-promoted Cash Advantage Fund has been approved as a Collective Investment Scheme covered under the Crown retail deposit guarantee scheme.

RaboPlus General Manager, Mike Heath, says the Government guarantee for its PIE product – the Cash Advantage Fund (CAF) – provides customers with additional assurance that complements the bank’s existing offering.

“In the current economic environment, financial security is of paramount concern for New Zealand banking customers and investors. The Cash Advantage Fund invests in a deposit with Rabobank NZ, the only bank in New Zealand to hold a AAA credit rating from Standard & Poor’s. That deposit is now covered under the Crown retail deposit guarantee scheme.

“The bank has a long history of conservative banking practice, and approval of the CAF under the Government guarantee scheme complements the existing stability and security that RaboPlus affords,” says Mike Heath.

Rabobank has just been confirmed as the world’s fifth safest bank by Global Finance magazine*.

RaboPlus was the first to bring a cash PIE (Portfolio Investment Entity) to market in December 2007. The CAF was set up jointly by RaboPlus and AMP Capital Investors in response to the tax benefits resulting from the Portfolio Investment Entities (PIE) regime, introduced on October 1 2007.

The Cash Advantage Fund has tax capped at 30% and provides investors with an investment option similar to an on-call bank deposit, strengthened by the backing of Rabobank’s AAA credit rating.

• RaboPlus is the online savings and investment service of leading food and agribusiness bank Rabobank.

• Deposits with Rabobank New Zealand also enjoy a guarantee from its group parent company Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A. (Rabobank Nederland). That guarantee is unlimited in amount and unsecured.

• Parent company Rabobank is based in the Netherlands and operates with a very conservative approach to risk and credit management, employing prudent banking practices throughout its 110-year history.

• As a cooperative, Rabobank does not have public shareholders and operates its business with a long-term view taking into account the best interests of the bank, its members and its clients. It does not distribute dividends on shares or profits to external parties; instead, Rabobank’s profits are retained in the business to be reinvested in the strength of the bank, growth of the business and further servicing of its customers.
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RaboPlus is an online banking service designed to complement customers’ existing banking arrangements. RaboPlus offers New Zealanders a high interest, no fees, on-call savings account as well as term deposits and access to managed funds.

RaboPlus is a division of Rabobank New Zealand Limited, part of the international Rabobank Group, the world’s leading specialist in food and agribusiness banking. Rabobank has more than 110 years’ experience providing customised banking and finance solutions to businesses involved in all aspects of food and agribusiness.

Rabobank has the highest possible credit ratings from both Standard & Poor's (AAA) and Moody's Investor Service (Aaa), and has held these Triple A ratings for over 25 years. Rabobank operates in 43 countries, servicing the needs of more than nine million clients worldwide through a network of more than 1600 offices and branches. Rabobank is among the 20 largest banks in the world based on tier one capital. In New Zealand, Rabobank employs approximately 211 staff across 29 branches to service its clients. Sixteen staff, including a Wellington-based call centre, support RaboPlus customers.

RaboPlus is the winner of Best Online Savings Account, Best 90 Day Term Deposit and Best New Product (Cash Advantage Fund) at the 2008 Sunday Star Times, Cannex Banking Awards. RaboPlus also won the Emerging Business Award at the 2007 NZ Marketing Magazine Marketing Awards, and won the Gold in New Product or Service Introduction and the Best in Show award at the 2007 Effies (Advertising Effectiveness Awards).

*Global Finance magazine published a mid-year update to its “World’s 50 Safest Banks” listing last week.

ENDS

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