by Jenha White
The closed down funds are the Huljich Balanced Fund and the Huljich Australasian Fund which were both launched in October 2007 just before the global financial crises hit, but they haven't been marketed to the public since early 2008.
The funds have instead kept going in the background and they invest in the same assets as the KiwiSaver funds.
Huljich Wealth Management (HWM) managing director Peter Huljich says there was a question about the old funds qualifying for PIE status because they had been closed to the public and did not meet some of the eligibility criteria.
"Our tax advisors said it was a grey area and together we decided we couldn't take the risk of building up these funds with investors money and then having a PIE tax problem down the line.
"It has cost us some extra money to close the funds and start new ones but we wanted to be 100% sure the funds were PIE compliant and eligible for those tax advantages for our investors."
The equivalent new Huljich Balanced Fund and Huljich Australasian Fund will be launched next week.
Huljich says he has had a large number of enquiries from the public and especially from KiwiSaver members asking what investment funds HWM offers outside KiwiSaver.
"The general enquiry we have from our members is that they are already maximising all the Government and employer incentives from KiwiSaver and have extra money they want to invest but don't want it locked in until age 65."
He says the general public enquiries are usually based around word of mouth as people would like to know if they can invest a lump sum.
Most of the HWM enquiries come from people who already have investments as they have surplus cash which is not earning them much on term deposit and they would like someone to manage an investment for them in the equity and fixed income markets.
Huljich says the target market for these funds is long term investors or those people who have a lump sum saved up and want HWM to put it to work for them and see a good return over 3-5 years.
The amount of money in the funds is small as HWM started them just before the global financial crisis and hasn't marketed them to public since early 2008, however those early investors who are still in the funds have been well rewarded with the Balanced fund returning 22% since inception just over two years ago.
Huljich says all its funds invest in the same assets so its looking forward to be able to give the same service and performance that its current KiwiSaver customers have enjoyed to those who want a managed fund investment.
Jenha is a TPL staff reporter. jenha@tarawera.co.nz
| « CPD rules get industry thumbs-up | Sovereign takes regulation bull by the horns » |
Special Offers
© Copyright 1997-2024 Tarawera Publishing Ltd. All Rights Reserved