Outstanding return for Fidelity Life's options portfolio

[ Friday, 20 January 2006 ]

Fidelity Life's Options Portfolio exceeds initial projections.

Fidelity Life’s unique Options Portfolio has achieved a return of 11.55% (after tax and fees) in its first year since inception on 1 August 2004, exceeding initial projections of 10% p.a. net. This return is equivalent to over 17% p.a. pre-tax at the 33% tax rate.

The Options Portfolio is a hybrid fixed interest investment using cash deposits, bills and other short-term financial instruments as security for writing leveraged options. Fidelity Life is the only company in New Zealand offering this type of investment choice for retail investors. Tyndall Investment Management manages the Options Portfolio for Fidelity Life.

Milton Jennings, CEO of Fidelity Life sees the high return from the Options Portfolio as “only reinforcing what an exciting investment the Options Portfolio is for investors wanting high returns in the traditionally uninspiring fixed interest investment sector”.

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