tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Thursday, February 29th, 7:13PM

News

rss
Latest Headlines

News Round Up

Tax changes fundamentally flawed, Managed funds surge in popularity, Economists divided on rate cuts, Fund borrows to invest, UK pension transfer scheme approved. Comment: My view on the future shape of the advisory industry

Monday, April 24th 2006, 6:27AM
The Financial Planners and Insurance Advisers Association (FPIA) says that the proposed changes to the taxation of direct investments in offshore equities is fundamentally flawed.

It says the unrealised capital gains tax disadvantages direct equity investment outside of Australasia will discourage prudent international diversification. While ASX-listed shares will be treated in the same manner New Zealand investments, other Australian assets, such as managed funds, will be subject to capital gains tax.

The association also says the 33% tax cap on managed funds appears to be an "illusory" benefit for people on higher tax rates as increased compliance cost associated with direct investment will likely be offset by fees payable within the managed fund.

It claims "the additional costs of compliance are significant and likely to have been underestimated. Some of theses new costs will be passed on, down the chain, to investors and advisers."

Managed funds surge in popularity
Managed funds have recorded an upsurge in popularity in the latest ASB Investor Confidence survey.

Residential property remains the asset class which is expected to give the best return, and managed funds was the second highest ranked type of investment.

While residential rental property remains the highest ranked asset class, it dropped four points to 20%. The big change in the first quarter of 2006 was managed funds, up seven points to 16%.

ASB Investments head of investment Jonathan Beale says the increase in confidence is driven by improving returns. Also announcements regarding taxes and regulation and changing market dynamics have seen investors placing increased confidence in managed funds.

Economists divided on when to expect rate cuts
Economists are not expected the Reserve Bank to cut the official cash rate this week, and they have a range of views about when the bank will start to ease monetary policy. [MORE]

Comment: My view on the future shape of the advisory industry
Quite often I am asked for my view on the future of the financial advisory industry in New Zealand. My view, which I am happy to explain to anyone who asks (and it reiterates what I have put on record before), is that the future will be quite different to Australia.

New Zealand will not adopt a model where all advisory businesses have to be part of a network or dealer group. [READ ON]

Fisher to gear fund
Fisher Funds Management is planning to gear its New Zealand share fund so that it has enough money to take part in two upcoming sharemarket floats.

The fund is currently fully invested and its manager, Carmel Fisher, does not want to liquidate any of its current holdings to take part in the two, undisclosed, IPOs. Under its trust deed the fund can borrow up to 25% of its assets - currently is has a net asset value of close to $110 million.

UK pension transfer scheme approved

Britannia Financial Services has received regulatory approval for its United Kingdom pension scheme. It is the first firm in New Zealand and the fifth in the world to receive approved status under new regulations that came into effect this month.

Britannia is wanting to become the specialist facilator of UK pension transfers for advisers and their clients in New Zealand. However it is not the only advisory firm operating in this market in New Zealand.

« Company hit for misleading investorsSovereign takes regulation bull by the horns »

Special Offers

Commenting is closed

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

Weekly Wrap

Previous News

MORE NEWS»

Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build 6.19 - - -
AIA - Go Home Loans 8.74 7.45 7.05 6.85
ANZ 8.64 7.99 7.49 7.35
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 7.39 6.89 6.75
ASB Bank 8.64 7.39 6.89 6.65
ASB Better Homes Top Up - - - 1.00
Avanti Finance 9.15 - - -
Basecorp Finance 9.60 - - -
Bluestone 9.24 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Classic - ▼7.29 ▼6.85 ▼6.65
BNZ - Green Home Loan top-ups - - - 1.00
BNZ - Mortgage One 8.69 - - -
BNZ - Rapid Repay 8.69 - - -
BNZ - Std, FlyBuys 8.69 ▼7.89 ▼7.45 ▼7.25
BNZ - TotalMoney 8.69 - - -
CFML Loans 9.45 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 7.15 - -
Co-operative Bank - Owner Occ 8.40 7.35 6.89 6.75
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Standard 8.40 7.85 7.39 7.25
Credit Union Auckland 7.70 - - -
First Credit Union Special - 7.45 7.35 -
First Credit Union Standard 8.50 7.99 7.85 -
Heartland Bank - Online 7.99 6.69 6.45 6.19
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.90 7.60 7.40 -
HSBC Premier 8.59 - - -
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 7.85 7.05 6.85 6.59
Lender Flt 1yr 2yr 3yr
Kainga Ora 8.64 7.79 7.59 7.29
Kainga Ora - First Home Buyer Special - - - -
Kiwibank 8.50 8.35 7.89 7.65
Kiwibank - Offset 8.50 - - -
Kiwibank Special - 7.35 6.89 6.75
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 9.00 7.90 7.39 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
Resimac - LVR < 80% 8.84 8.30 7.89 7.69
Lender Flt 1yr 2yr 3yr
Resimac - LVR < 90% 9.84 9.30 8.89 8.69
Resimac - Specialist Clear (Alt Doc) - - 8.99 -
Resimac - Specialist Clear (Full Doc) - - 9.49 -
SBS Bank 8.74 7.95 7.45 7.29
SBS Bank Special - 7.45 6.95 6.79
SBS Construction lending for FHB - - - -
SBS FirstHome Combo 6.19 7.05 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.95 - - -
Select Home Loans 9.24 - - -
TSB Bank 9.44 8.19 7.55 7.55
Lender Flt 1yr 2yr 3yr
TSB Special 8.64 7.39 6.75 6.75
Unity 8.64 6.99 6.85 -
Unity First Home Buyer special - - 6.45 -
Wairarapa Building Society 8.60 7.15 6.85 -
Westpac 8.64 7.89 7.49 7.25
Westpac Choices Everyday 8.74 - - -
Westpac Offset 8.64 - - -
Westpac Special - 7.29 6.89 6.65
Median 8.64 7.45 7.37 6.77

Last updated: 28 February 2024 11:55am

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