AMP Henderson Global Investors has established a new investment structure which allows investors to be taxed at their own marginal tax rate as opposed to the rate of a managed fund.
Currently investors using managed funds normally pay tax at 33%.
Instead of using managed funds, AMPH has developed a partnership structure for investors. Under this structure the partnership owns the underlying assets of the fund, and investors buy into the partnership in their own right.
AMPH's first 'fund' under this arrangement is the Strategic Income Partnership, which invests in New Zealand and Australian investment grade fixed interest securities.
Deemed rate of return up
The deemed rate of return for foreign investment fund interests has increased from 10.29% to 10.46% for the 2001-02 income year.
The foreign investment fund rules tax New Zealand residents on undistributed profits arising in foreign entities in which they have invested but do not control.
The rate, which is set annually, applies to all types of investments, including interests in superannuation schemes and life insurance policies. It is based on an average of five-year government stock rates to which a margin of 4 percent is added.
For an update on what to expect at this year's convention, which is due to be held in Palmerston North in July, go to the FPIA Convention page here
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