A PIE (Portfolio Investment Entity) fund is a type of New Zealand managed fund with its own tax rules. Many PIE funds calculate and pay tax on investment income using each investor’s prescribed investor rate (PIR), while some listed PIEs are taxed at a fixed rate. In many cases, income from a PIE fund does not need to be included in […]
InvestNow earns a distribution fee of 0.10% for the Term Deposit (TD) service. This fee does not result in any additional fees for you, or reduction in the interest rate you receive, for the Term Deposit(s) you invest in.
The rate you receive for the TD you invest in is the rate you see when you select the bank/term. In addition to the rate you receive, InvestNow will be earning a 0.10% distribution fee.
An example:
What do each of the column headings mean for the fund manager table?
Sector:
Sector refers to the type of asset the managed fund invests into, such as a diversified fund, cash fund, listed property fund, etc.
PDS Fee:
The PDS fee is the annual management fee estimate as stated in the Product Disclosure Statement (PDS) for this fund.
QFU Fee:
The Quarterly Fund Update (QFU) Fee is the latest actual fee charged by the fund in its most recent financial year, as stated in the fund’s most recent Quarterly Fund Update.
Buy/Sell Spread:
When you buy or […]
A diversified fund invests in a range of asset classes, regions, and/or industry sectors. Each of these assets have different characteristics eg their values may not all rise or decline at the same time. Investing in a range reduces the potential risk that anyone sector/region/industry can have on the overall performance of the fund – spreading the risk.
Diversified funds can be built to align to specific risk profiles, for example, Conservative, Balanced or Growth.
IRD stands for “Inland Revenue Department”. An IRD Number is a unique tax number given to you by the Inland Revenue Department of New Zealand so that you can pay the correct work taxes as you work in New Zealand.
When you buy or sell units in a fund, you may be charged a buy or sell spread. The buy spread is added to the unit price when you buy units, and the sell spread is deducted from the unit price when you sell units. For example: if you invest $10,000 into a fund with a 0.10% buy spread, the buy spread would be added to the price, bringing the starting value of your investment to $9,990.
Buy or sell spreads are intended to cover […]
An Investor is the entity (Individual, Joint, Trust or NZ Company) that has an account with InvestNow. A member is an individual, or individuals, that have access to the Investor account. Members can perform one of a number of roles and can have a number of permissions.
Cleared funds are monies in your Transaction Account that are available to be either invested or withdrawn.
An Investor is the entity (Individual, Joint, Trust or NZ Company) that has an account with InvestNow. A client is an individual, or individuals, that have access to the Investor account. Clients can perform one of a number of roles (see Roles FAQ) and can have a number of permissions (see Client Permissions FAQ).
You can find out more on the IRD website.
Resident Withholding Tax (RWT) is a tax deducted from the gross amount of interest paid to you. It is deducted at the time when the interest is paid to your InvestNow cash account.
When you open an InvestNow account, you will be asked to select your RWT rate and IRD number.
If we do not have an IRD number your account will be taxed at the maximum “non-declaration” rate of 33%.