About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   depositrates.co.nz  |   landlords.co.nz
Last Article Uploaded: Wednesday, September 17th, 7:46AM
rss
Latest Headlines

Funds flow offshore holds up

Funds flows into tax effective OEICs and Australian based funds has held up well in the September quarter.

Thursday, November 8th 2001, 7:05AM

The latest Good Returns' survey of tax-effective offshore funds shows that funds flow into UK-based Open-Ended Investment Companies held up well in the September quarter compared to the rest of the industry.

Net funds flow (applications minus redemptions) for the quarter was $24.3 mill, exactly the same figure as it was in June quarter.

While funds flow was positive the total amount of money invested in the sector took a hit from poor fund performance with net assets under management growing just 8% to $86.3 mill in the quarter.

These figures compare well with a very flat quarter for mainstream managed fund sector.

According to researchers FundSource the New Zealand domiciled funds had net funds flows of $69.1 mill, which made it the worst quarter for the industry since June 1998.

It says the September quarter figures was down 81% on the $354 mill figure recorded for the previous quarter this year.

The second part of the Good Returns' survey covers money invested into tax-effective Australian-based funds.

There are three confirmed funds in this area, including Money Managers First Step Mortgage fund, which is run by NZ Funds Management, and two Frank Russell Funds (international shares and international bonds) which are market as ANZ's Ascent investment programme.

First Step continued to attract significant volumes of new investment, with a net funds flow of $39 mill, taking it to $219 mill net assets under management.

Although there are only three funds included in this part of the survey, it is understood that other Australian based funds are being operated by managers, and quite a few managers are looking at establishing funds offshore to get around issues of paying tax on capital gains.

Although there are concerns that these funds could lose their tax-advantage if the Government adopts the risk free return model (RFRM) advocated by the McLoed tax review, that is unlikely to happen soon.

Finance minister Michael Cullen says the biggest problem with introducing RFRM lies with offshore investments.

Under such a scheme investors would have to pay tax on the amount of money they have invested at the start of the year no matter what happens during the year.

This means that in a situation where markets are declining in value investors would be paying tax although their funds are making losses.

« Managers stopped from using loopholeSovereign takes regulation bull by the horns »

Special Offers

Commenting is closed

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
  • Stewart's NZIG gets boost
    “I just heard Ralph present at a meet the managers roadshow, and found the rationale for the NZIG service to be very compelling I'd...”
    9 hours ago by Pragmatic
  • Bank advice concerns questioned
    “The converse unfortunately is also true Mike; "Often the game-warden makes the best poacher"....”
    1 day ago by R1
  • Insurers need to self-regulate advisers before it’s too late
    “LNF has the answer - only pay commission on the increased amount. Such an easy fix I would think! Gee that would turn some...”
    1 day ago by Cathy
  • Van Eyk enters administration
    “What they really need to do is to get some independent and competent assessment of these investments, underlying assets,...”
    1 day ago by Robert
  • Stewart replaces Garrett on board
    “Good stuff & worthy appointment. The PWF gains a director with immense knowledge & experience in the financial services industry....”
    1 day ago by Fred
Subscribe Now

Weekly Wrap

Previous News

MORE NEWS»

Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AMP Home Loans 7.24 5.99 6.39 6.65
AMP Home Loans $200k+ 7.14 5.89 6.29 6.55
AMP Home Loans LVR <80% - - 5.85 6.29
ANZ 6.74 6.15 6.49 6.49
ANZ LVR > 90 6.74 6.65 6.99 6.99
ANZ Special - 5.75 5.99 -
ASB Bank 6.75 6.09 6.40 6.65
ASB Bank Special - - 5.99 6.19
BankDirect 6.75 6.09 6.99 6.65
BankDirect Special - - 5.99 6.19
BNZ - Classic - - 5.99 6.19
Lender Flt 1yr 2yr 3yr
BNZ - GlobalPlus 6.74 5.99 6.39 6.59
BNZ - Mortgage One 7.15 - - -
BNZ - Rapid Repay 6.74 - - -
BNZ - Std, FlyBuys 6.74 5.99 6.39 6.59
BNZ - TotalMoney 6.74 - - -
Credit Union Auckland 6.70 - - -
Credit Union Baywide 6.45 5.90 6.50 -
Credit Union North 6.45 - - -
Credit Union South 5.75 - - -
eMortgage 6.04 6.15 6.69 7.19
Finance Direct 6.10 6.45 6.69 7.10
Lender Flt 1yr 2yr 3yr
First Credit Union 6.45 - - -
General Finance 5.95 6.25 6.50 7.10
HBS Bank 6.15 5.85 5.99 6.19
HBS Special - - - 5.89
Heartland 6.70 7.00 7.25 7.85
Heretaunga Building Society 6.70 6.00 6.50 -
Housing NZ Corp 6.74 5.99 ▲6.39 ▼6.59
HSBC Premier 6.84 5.95 5.95 ▼6.39
HSBC Premier LVR > 80% - 5.75 5.75 5.75
HSBC Special - - - -
ICBC 6.75 5.99 6.39 -
Lender Flt 1yr 2yr 3yr
Kiwibank 6.65 5.99 6.39 6.65
Kiwibank - Capped 5.65 6.50 - -
Kiwibank - Offset 6.55 - - -
Kiwibank LVR > 80% - - 5.89 6.19
Liberty 5.64 - - -
Napier Building Society 5.80 6.00 6.70 -
Nelson Building Society 6.95 6.15 6.60 -
NZ Home Loans 6.85 6.09 6.40 6.65
Perpetual Trust 7.70 - - -
Resimac ▲6.59 ▲6.35 6.58 6.77
SBS Bank 6.15 5.85 5.99 6.19
Lender Flt 1yr 2yr 3yr
SBS Bank Special - - - 5.89
Silver Fern 5.95 6.10 6.55 7.05
Sovereign 6.85 6.09 6.40 6.65
Sovereign Special - - - 6.19
The Co-operative Bank 6.70 6.00 6.00 6.25
TSB Bank 6.74 ▼5.95 6.19 ▼6.30
TSB Special - - 5.79 -
Wairarapa Building Society 6.20 5.75 5.95 -
Westpac 6.59 6.09 6.39 6.65
Westpac - Capped rates - 6.74 6.99 -
Westpac - Offset 6.59 - - -
Lender Flt 1yr 2yr 3yr
Westpac Special - - 5.99 6.19
Median 6.70 6.00 6.39 6.57

Last updated: 17 September 2014 7:43am

News Quiz

BNP Paribas Securities Services’ latest Asset Administration and Custody Review found worries about government regulation is causing how many to lose sleep?

50%

90%

33%

10%

67%

MORE QUIZZES »

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by PHP Developer and eyelovedesign.com