Your questions answered

You may have a number of questions following the changes announced around the Bonus Bonds scheme, so we’ve provided the following FAQs to help answer these.

• Expand/collapse listBonus Bonds wind up
  • Expand/collapse listCan I still cash in my Bonus Bonds? And could this change in the future?

    Investors can:

    • Redeem their Bonus Bonds before the commencement of the intended wind up and benefit from the October prize draw if you are eligible.
    • Or, you can stay in the scheme until it is wound up. In a wind up redemptions will cease and all remaining funds in the scheme are locked in until wind-up is completed. The scheme will be wound up, with all investments sold, expenses paid and the net proceeds paid to remaining Bondholders according to the number of Bonds they hold. This could take up to 12 months. There is a reasonable chance that Bondholders will receive slightly more than $1 per unit in a wind up, however please note that while we don’t expect to pay less than $1 per Bonus Bond, it is possible that the price could be slightly less than $1.

  • Expand/collapse listWhat are reserves?

    Investors have always paid $1 for a Bonus Bond and been able to redeem them for $1. As with all managed investment schemes, there is the possibility that an investor can lose money and in the case of Bonus Bonds, that the price could be changed up or down. In order to keep the price of a Bonus Bond at $1 we hold reserves as a buffer to protect against this. In a wind up, these reserves form part of the total pool of assets to be distributed to investors in the wind up process.

    Reserves in the scheme were $74m at 1 April 2020.

  • Expand/collapse listIf a lot of customers redeem their bonds, what impact will it have on those who choose to leave their Bonus Bonds in?

    There will be no impact to those who choose to hold on to their Bonus Bonds. We hold a large number of liquid assets to support high levels of redemptions, however if we think it is in the best interest of bondholders, we could possibly suspend redemptions to treat all bondholders equally. In windup of the scheme, bondholders are entitled to a share of the reserves. There is a reasonable chance that bondholders will receive slightly more than $1 per unit in a wind-up situation, however please note that while we don’t expect to pay less than $1 per Bonus Bond, it is possible that the price could be slightly less than $1.

  • Expand/collapse listHow long would it take to wind up the scheme?

    We hold a number of term deposits that will mature within the next 12 months. Final payments in a wind up cannot occur until these have matured or been otherwise realised. As such investors remaining in the scheme should expect to wait up to 12 month to receive any distributions from the scheme. We will consider making one or more partial payment prior to a final payment if we consider this to be both practical and in the interest of bondholders.

  • Expand/collapse listWhat is the difference between closure and wind up?

    In a closure situation, no new Bonus Bonds can be purchased, but you can still redeem your Bonus Bonds and the monthly prize draw continues. The Bonus Bonds scheme was closed at 7pm on 25 August 2020.

    In a wind up situation, no Bonus Bonds can be purchased or redeemed and we will return funds to investors as they become available. The monthly prize draw will stop at this point. You will not be able to cash in your Bonus Bonds, instead you will receive one or more distributions from the scheme during the wind up process. There may be a delay of up to 12 months to receive all distributions from the scheme. There is a reasonable chance that bondholders will receive slightly more than $1 per unit in a wind-up situation, however please note that while we don’t expect to pay less than $1 per Bonus Bond, it is possible that the price could be slightly less than $1. We will ensure that we act in the best interest of all bondholders in a wind up situation.

  • Expand/collapse listI currently have my payment method set to “reinvest”. If I win a prize in the October draw, will the prize be reinvested?

    Yes. Further Bonus Bonds will be issued to the value of any prize won in the October prize draw where you have set your payment method to reinvest. However, if one of the major prizes ($1m, $100k, $50k) is won by you, we will contact you directly to organise prize payment.

  • Expand/collapse listHow will we be notified if the fund has gone into wind up?

    There will be an initial public announcement and this may include notices on the ANZ and Bonus Bonds website and newspaper and radio advertisements.

  • Expand/collapse listWill my cash-in request be processed if I have submitted it and it hasn’t been processed when the move to wind up is announced?

    All valid cash-in requests accepted in branch, online through MyBonusBonds or received directly by the Bonus Bonds Centre prior to announcement of wind up of the scheme, will be processed.

  • Expand/collapse listI want to leave my funds in until wind-up has been completed, how will you pay me?

    We will make payment to any NZ bank account of your choice. We will be in contact with you to request your bank account details and recommend you provide us with a current email address and check that your residential address is up to date.

    • If you have MyBonusBonds, please do this online.
    • ANZ customers, who do not have MyBonusBonds access, we encourage you to call the contact centre on 0800 266 374.
    • Non-ANZ customers, who do not have MyBonusBonds access, you can visit any ANZ branch. Please remember to take appropriate identification and proof of your address with you.

  • Expand/collapse listWhat happens if I still have funds in the scheme when it goes into wind-up?

    Redemptions will cease and all remaining funds in the scheme are locked in until wind up is completed. The scheme will be wound up, with all investments sold, expenses paid and the net proceeds paid to remaining Bondholders according to the number of Bonds they hold. This could take up to 12 months. There is a reasonable chance that people will receive slightly more than $1 per unit in a wind up, however do note while we don’t expect to pay less than $1 per Bonus Bond, it is possible that the price could be slightly less than $1.

  • Expand/collapse listWhen the Scheme moves into wind up, will I still be able to use MyBonusBonds?

    Yes, you can continue to view your bonds online, communicate securely with us using Bondmail and keep your contact details up to date.