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Fisher keeps Kingfish contract; KBC Water Fund dries up; Small tax changes – big growth opportunities

Monday, February 16th 2009, 5:00AM

Fisher keeps Kingfish contract
Kingfish has agreed for its portfolio manager to stay on another five years.

In March 2004 Fisher Funds Management signed a five year management agreement, with the option of another five years added to the term if the manager’s performance was satisfactory.

After a review by Kingfish independent managers, the company said Fisher Funds had done well in the management of its portfolio, despite short-term investment performance being “disappointing” due to the global credit crisis.

KBC Water Fund dries up
KBC Asset Management has stopped offering or issuing units in its KBC Water Fund, after reviewing its international business, including its current operations in Australia.

The assets for existing investors will continue to be managed, however the fund will be reviewed on an ongoing basis and the company said it is probable the fund will be wound up as investors retrieve capital over the coming months.

The tweaks entail:

• Providing conduit tax relief, like that in Australia, where overseas investors don’t pay tax on foreign investments which are managed here on their behalf. Tax should be only on the New Zealand management services fee
• Amending PIE tax regime for funds which distribute their earnings so overseas investors are taxed on their distributions at rates they would pay if they held the fund investments directly.

“It’s a no-brainer. The changes should increase our tax take and provide an important growth platform for the New Zealand funds management industry – creating new job and export earnings opportunities in the financial services sector,” Chapman Tripp partners Tim Williams and Casey Plunket say.

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