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C & D


KiwiSaver Periodic Disclosure

Recently KiwiSaver providers had to commence providing Quarterly Disclosure Statements for their various KiwiSaver Funds. This includes fee and performance reporting in a standardised approach.

When it comes to performance reporting, the providers are required to provide after tax and fee returns. The tax rate, or more correctly, the prescribed investor rate (PIR) that is used is the highest PIR rate being 28%. This is different to the figures that Research House Morningstar publishes. They use the gross of tax return figures.

Trusts – Be Wary of Over Gifting

Just over three years ago, gift duty ceased to exist. Some people at that time said “This is great as I can simply gift all my assets over to my trust and they will be out of reach of creditors, disillusioned partners, and government agencies for benefit means testing”.

It’s now Tougher to Launder Money

01 Jul 2013

On the first of July the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Act (AML) came into force and this legislation will have a major impact on the way we all interact with financial institutions. All financial institutions are now required to undertake due diligence on all new customers, particularly trusts, and on-going due diligence on existing customers. Essentially there is a need to know where the money came from.

Overseas Investments and Pension Transfers

It is not uncommon for New Zealanders to have overseas investments. Commonly these are often held in the form of pensions, especially in the United Kingdom and Australia. Migration to New Zealand, working holidays overseas and inheritances can all lead to investment assets being held outside the country.

KiwiSaver Investors Switching Providers

We were rather surprised to read a report from Massey University director of financial planning, Dr Claire Matthews that indicates that many KiwiSaver investors are choosing to transfer out of or between KiwiSaver schemes being run by the country’s five major banks.

The banks collectively had 28,139 members transfer out of their KiwiSaver funds in the year ended 31 March 2012. That represented close to 60% of the 48,000 people that transferred into the banks’ KiwiSaver schemes in the same period.

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