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: Tuesday, March 19th, 6:25PM

News

rss
Latest Headlines

An investment fund where someone other than the investor gets the returns

A new fund from Nikko Asset Management may well be the ultimate gift to others.

Saturday, October 16th 2021, 1:02PM 2 Comments

Nikko has launched the NZ Freedom Fund where it charges no investment management fees and the returns made by the fund are all donated directly to a charity - Tearfund NZ.

In a nutshell the manager and investors get nothing, and the charity benefits.

The fund is an actively-managed PIE fund with a target annual return of around 2%.

Nikko has selected Tearfund for its work countering modern slavery. 

Nikko AM managing director George Carter says the choice to support Tearfund was influenced partly by Nikko being part of a global family, but also as the extent, prevalence and proximity of modern slavery is not widely recognised here in New Zealand.

There are an estimated 40 million victims of slavery in the world today, and over two-thirds of these are in the Asia Pacific area. It says 25 million of these victims are in forced labour, so as consumers we can quite easily become unwitting beneficiaries of exploitation.

Carter says the aim is to have more than $3 million invested in the fund in the first couple of years.

At a 2% return that would generate more than $60,000 a year for TearFund. Its immediate target is to generate income of around $50,000 annually – which would be enough to cover the cost of carrying out investigations on suspected cases of sexual exploitation, leading to the arrest and prosecution of offenders.

The returns from the fund are treated as donations and therefore exempt from tax, and Nikko AM and its service providers covering the operating costs and donating their management fees, 100% of the returns generated can be donated directly to Tearfund NZ.

“This unique structure makes it the most efficient way of generating charitable donations from invested capital, meaning more money ends up being used for good,” Carter says.

Carter says the fund is timely as the global pandemic has shifted the focus away from supporting charities and the important work they do.

“Traditionally, charitable financial support has relied solely on people or businesses giving their money away. By allowing us to employ our investment expertise to use some of their savings or capital to generate income, we’re providing a new option for them to donate without donating, while still being able to access their money at any time.”

“We hope the fund will have wide appeal. However, we think it may be of particular interest to philanthropic investors, trusts and businesses seeking to continue their commitment to positive social impact in these challenging times.”

Freedom Fund investors have the flexibility to withdraw their money at any time and are not locked into a fixed term investment.

Nikko AM is operating the fund entirely free of set-up, administrative or management fees, and under a highly efficient tax structure, the amount of charitable donation generated is far greater than would be possible through any other type of fund set up.
“In the simplest terms, this means the charity will receive maximum returns from the capital, with no one clipping the ticket along the way.”

Tags: George Carter Nikko AM Philantrophy

« FSCL sees spike in overall complaintsTough times ahead for NZ economy: Nikko economist »

Special Offers

Comments from our readers

On 18 October 2021 at 10:11 am Pragmatic said:
A very cool initiative - similar to the successful version started by industry legend - Chris Cuffe - in Australia a number of years ago.
On 22 October 2021 at 12:37 pm Graeme33 said:
nice idea. considering they have access to ARK, 2% expected pretty poor. No Thanks. prefer AK City Mission. Graeme...System Futures Ltd

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

Weekly Wrap

Previous 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 7.24 6.79 6.65
ANZ 8.64 7.84 7.39 7.25
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 7.24 6.79 6.65
ASB Bank 8.64 7.24 6.79 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 - 7.24 6.79 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 7.84 7.39 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 - 7.04 - -
Co-operative Bank - Owner Occ 8.40 7.24 ▼6.79 ▼6.65
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Standard 8.40 7.74 ▼7.29 ▼7.15
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 ▼6.75 6.59
Lender Flt 1yr 2yr 3yr
Kainga Ora 8.64 7.79 ▼7.39 ▼7.25
Kainga Ora - First Home Buyer Special - - - -
Kiwibank 8.50 8.25 7.79 7.55
Kiwibank - Offset 8.50 - - -
Kiwibank Special - 7.25 6.79 6.65
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 9.00 7.75 7.35 -
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 7.84 7.45 7.25
SBS Bank Special - 7.24 6.85 6.65
SBS Construction lending for FHB - - - -
SBS FirstHome Combo 6.19 6.74 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.95 - - -
Select Home Loans 9.24 - - -
TSB Bank 9.44 8.04 7.55 7.45
Lender Flt 1yr 2yr 3yr
TSB Special 8.64 7.24 6.75 6.65
Unity 8.64 6.99 ▼6.79 -
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 7.29 7.32 6.65

Last updated: 14 March 2024 9:32am

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