ANZ said on Tuesday that it is still waiting for 804,000 bondholders to contact them with their account information. This includes those who may have received Bonus Bonds as a gift or who may have purchased Bonus Bonds in the past.
On August 26, 2020, ANZ Investment Services (NZ) Ltd announced that it would stop accepting new Bonus Bond investments after more than five decades. Low interest rates “continued to diminish the prize pool,” according to ANZ managing director retail and business banking Ben Kelleher.
ANZ NZ managing director of personal banking Ben Kelleher confirmed that bondholders who stayed in the plan through the wind-up process would be paid $1.10 per Bonus Bond.
“If there are any remaining monies to be disbursed,” Kelleher stated, “another minor payment may be made next year.”
Unclaimed funds will be sent to the Treasury, according to ANZ. A date has yet to be determined.
ANZ encourages anyone who believes they have Bonus Bonds to contact them “now or early in the New Year.”
Bondholders should contact ANZ to confirm their bank account details for monies to be paid into if they haven’t previously done so.
“We need to make sure payment is made to the account the client wants the funds sent to, even though we hold account information for several bondholders,” Kelleher explained.
ANZ said it aims to make a payment by Christmas to the 232,000 bondholders who have already given their account information.
Payments would “continue to be processed regularly, until completion of the wind-up,” according to an ANZ spokesman, for bondholders who have yet to contact them with their information.
Bondholders can speak with the team about what kind of identification is needed and what information is currently accessible, according to Kelleher.
Q6. How can persons who believe they have Bonus Bonds but no records go about getting them?
People who received Bonus Bonds as a youngster or as a present may have forgotten about them.
ANZ encourages anyone who believes they may have Bonus Bonds to contact them.
Bondholders can get further information by calling 0800 266 374 or visiting the Bonus Bonds website.
Is it still possible to purchase Bonus Bonds?
Why did ANZIS decide to cease taking new Bonus Bond investments and close the scheme down? With low interest rates reducing the Bonus Bonds prize pool, the plan stopped to new investment on August 25, 2020, and ANZ Investment Services New Zealand Limited (ANZIS) announced its intention to start winding up the Scheme by the end of October 2020.
The scheme’s wind-up, which began at 9 p.m. on Saturday, October 31, 2020, was confirmed by ANZIS, the manager, and Trustees Executors Limited, the supervisor.
No Bonus Bonds can be purchased or redeemed in a wind-up situation, and money will be returned to bondholders as they become available. A monthly prize draw will no longer be held. You will not be able to cash in your Bonus Bonds; instead, throughout the wind-up process, you will receive one or more distributions from the Scheme.
Are Bonus Bonds a wise investment in New Zealand?
You can elect to put a small amount of money into Bonus Bonds in order to be eligible for a million-dollar cash award. That would be totally logical if you were informed of the slim chances of winning (1 in over 3 billion every month per bond held). Bonus Bonds are a safe investment if you accept this risk.
What is the procedure for obtaining Bonus Bonds?
Your contribution will be deposited into any New Zealand bank account you specify. Simply phone the Bonus Bonds Wind-up Contact Centre between the hours of 8 a.m. and 6 p.m., Monday through Friday, on 0800 266 374.
Please note that you do not need to visit an ANZ branch; when you call, they will instruct you on how to supply your bank account information.
In many circumstances, you will be able to offer your bank account information over the phone right away.
It might be good to have the information of your Bondholding on hand when you call (for example, your Bondholder number or a serial number from a Bonus Bonds certificate).
In December of current year, the ANZ expects to pay $1.10 for each Bonus Bond owned. Bondholders may get a small payout at a later date if there are any money left over after the Bonus Bonds scheme is closed.
What happens to Bonus Bonds that aren’t claimed?
After the plan is closed, Treasury will oversee the process of claiming funds.
Anyone who believes they may have Bonus Bonds should contact ANZ right away so they can receive their payments as soon as possible.
How do people contact ANZ about Bonus Bonds?
You can call the designated phone line at 0800-266-374 if you suspect you might be a Bonus Bondholder. Visit www.bonusbonds.co.nz for more details.
What is the best way to figure out how many Bonus Bonds I have?
You can manage your Bonus Bonds at any time of day or night, from anywhere with an internet connection.
Please be aware that you will no longer be able to access MyBonusBonds to check your balance, update your contact information, or send your wind-up instructions as of November 5th. If you have any questions or need to make any adjustments to your Bonus Bonds, please contact our Bonus Bonds staff at the numbers listed below.
What are Bonus Bonds in New Zealand?
Bonus Bonds is a New Zealand unit trust that was created in 1970 with a cash-based reward plan. Bonus Bonds were introduced by the New Zealand government through the Post Office Savings Bank under the Unit Trusts Act 1960, with the purpose of encouraging New Zealanders to save money.
How Do Bonus Bonds Work in New Zealand?
ANZ Investment Services (New Zealand) Ltd (ANZIS) has announced that it would no longer accept new Bonus Bonds Scheme investments as low interest rates continue to diminish the prize pool.
ANZ’s Managing Director Retail and Business Banking, Ben Kelleher, said, “We’re continuously examining our investment products to ensure they best serve the interests of investors.”
âLow interest rates have cut the scheme’s investment returns, reducing the prize pool’s size. Those tendencies are now clear to be likely to persist in the medium run. As the world economy grapples with the effects of Covid-19, the Official Cash Rate, which is currently at a historically low 0.25 percent, may fall even more in early 2021.
âWith immediate effect, the ANZIS Board has concluded that it is no longer suitable to accept fresh investment into Bonus Bonds, and the scheme will be wound up by the end of October. The procedure of winding up the scheme includes returning payments to bondholders.
âThe scheme will continue to function prior to the start of the wind-up, with two further prize draws expected.â
In 1970, the New Zealand government issued Bonus Bonds through the Post Office. Instead of earning interest or receiving investment profits or losses, each qualified Bonus Bond provides bondholders with one entry into a monthly prize draw in which the scheme’s investment returns are distributed as prizes. The monthly draw’s top prize is $1 million.
The prize draws for September and October are expected to go ahead as planned, and customers can continue to redeem their Bonus Bonds until the winding up process begins. ANZIS, on the other hand, may choose to wind up earlier if there is a high demand for redemptions or if it otherwise believes it is in the best interests of investors.
âInvestors have a couple of options. They can either redeem their Bonus Bonds before the scheme begins to wind down, or they can stay in the scheme and be entitled to a part of the leftover reserves after expenses when the scheme is wound up, according to Mr Kelleher.
Those that stay during the wind-up period will have their investments locked in for the duration of the process, which might take up to 12 months.
âThe board feels that current reserves are sufficient to assure bondholders that their initial investment will be repaid. The reserves are the difference between the value of the scheme’s assets and the demands of bondholders.
With the Covid-19 limits in place, Mr Kelleher advised bondholders to think about whether it was the best time for them to redeem their bonds, and provided information in the FAQs.
Mr Kelleher said that a member’s visit to an ANZ branch was not required right away.
When did Bonus Bonds first become popular?
He said the ultimate amount investors will receive at the end of the wind-up would depend on the actual costs of winding up the scheme as well as any investment income produced after October 31, 2020.
Bondholders would be able to see the financial statements via email, mail, public announcements, and posting the results on the Bonus Bonds website and the NZ Companies Office Disclose Register.
Financial statements reflecting the scheme’s financial situation at the time the wind-up occurred on October 31 were required by the Financial Markets Conduct Act, according to ANZ.
Bondholders should anticipate their money back in the second half of 2021, according to Kelleher.
“In due course, we will contact customers with instructions on how to get their money,” he stated.
Kelleher stated in August that closing Bonus Bonds was in the best interests of investors.
“Low interest rates have reduced the scheme’s investment returns, affecting the size of the prize pool,” he explained.
“It’s now clear that those patterns are likely to persist in the medium run.” As the world economy grapples with the effects of Covid-19, the official cash rate, which is already at a historically low 0.25 percent, may fall further in early 2021,” Kelleher stated at the time.
Bonus Bonds NZ is owned by who?
Bonus Bonds are units in the Bonus Bonds Scheme (‘Scheme’) and are not deposits or other obligations of ANZ Bank New Zealand Limited (‘ANZ’), Australia and New Zealand Banking Group Limited (‘ANZ Group’), or their subsidiaries (the ‘ANZ Group’).