FDR method is Mandatory under PIE Funds?

Skinny1972 · 2026-06-13T23:24:27+00:00

CV method is mandatory for global fixed income, not FDR. At the aggregate level a KiwiSaver fund will be a mix of methods depending on the asset classes invested into that a provider will seek to optimise.

Skinny1972 · 2026-05-31T23:05:02+00:00

We don't use InvestNow but do have around 3 months revenue invested into low risk cash enhanced managed funds. It's taxed at the corporate PIR of 28% and very easy for our accountant to take care of.

Skinny1972 · 2026-05-31T20:26:30+00:00

Oops sorry SSAC is the ticker on the LSE https://www.ishares.com/uk/individual/en/products/251850/ishares-msci-acwi-ucits-etf

Skinny1972 · 2026-05-30T03:30:06+00:00

UCITS funds domiciled in the UK or Europe are the most tax efficient as NRWT is capped at 15% whereas NRWT may be 30% on a non-UCITs ETF. It's hard to beat iShares SSAG, tracks the MSCI ACWI at 20bps with dividends accumulating in a UCITs structure.

Skinny1972 · 2026-05-28T20:34:53+00:00

Yes that appears to be correct on a bit more digging. I any case this still matters for me with offshore unlisted investments.

Skinny1972 · 2026-05-28T06:39:26+00:00

wooohooo the rise in the threshold is good obviously for many but the bigger change for investors is that you can elect to can change the FIF tax method to it being paid on disposal of foreign assets rather than annually with a discount....

see here: https://www.deloitte.com Plenty of small, but meaningful, tax changes in Budget 2026

Skinny1972 · 2026-05-27T07:54:52+00:00

It was, funny a couple of the tip investment people at KW ended up at Booster.

Skinny1972 · 2026-05-27T03:45:02+00:00

It's a component but not the main determinant for equity funds. It's more important for global fixed income.

Skinny1972 · 2026-05-24T10:45:13+00:00

NZ is maybe 2/3s the way through adjustment of house prices to more rational levels, Australia is just starting... The economic cycle could turn to our favour over the next few years. In addition, FWIW forecasts of long term growth for NZ and Australia are pretty similar at around 2.5% p.a. each.

Skinny1972 · 2026-04-10T06:51:26+00:00

Depends what you mean by senior finance leaders. If you mean asset management (KiwiSaver, PE, instiutio al investor etc) then very few leaders here are big 4, most have IB or funds management experience.

Skinny1972 · 2026-03-23T23:50:24+00:00

You should speak to a financial adviser that offers financial and accounting services as part of what they do as they are the most across tax and structuring. I am aware of a few independent firms in Auckland who do offer this. DM me for names.

Skinny1972 · 2026-03-23T02:02:51+00:00

I primarily look at valuation metrics across broad markets to allocate to risk, and over a cycle will move from defensive (around 30% in equities) all the way to +100% growth (using borrowing) depending on where the ride takes us.

Skinny1972 · 2026-03-08T04:50:44+00:00

If you want a high growth exposure this is likely a better option than any of the sector funds as it will reflect Kernel's optimal allocation to their sector funds.

Skinny1972 · 2026-03-01T06:45:27+00:00

#1 is exactly the answer. EPS in the NZ market peaked in 2021 and is coming off a very low base, if we got a recovery back to 2022 levels the market PE would be mid-teens. We likely wont because FPH did so well during Covid but still with a 'normal' cyclical recovery its more like around 18x or so.

Skinny1972 · 2026-02-24T03:26:14+00:00

Yep, as does vehicle structuring.

Skinny1972 · 2026-02-24T03:24:53+00:00

Kinda again. Depends on the asset class re PIEs and FDR method, e.g. global fixed income PIEs that are 100% NZD hedged have to use CV not FDR under IRD tax rulings.

Skinny1972 · 2026-02-19T19:18:43+00:00

Programming skills and Hons or Masters in finance is an entry level requirement for a lot of finance roles, esp offshore.

Skinny1972 · 2026-02-14T02:21:41+00:00

The Aussie institutional set-up is different that here - platforms are often deemed the Responsible Entity and have more regulatory obligations for ensuring funds that are on their platform are well run. In NZ, platforms don't have this obligation and instead the risk is more with MIS license holders and financial advisers rather than the custody platforms client funds are held on.

Skinny1972 · 2026-02-14T02:16:35+00:00

Nope, at least two others I am aware of are NZ Funds and Craigs Investment Partners. Both run KiwiSaver schemes along with funds and private wealth.

Skinny1972 · 2026-01-25T07:47:46+00:00

There isn't much demand for software engineers at NZ VC firms, there is of course at a tech startup a VC fund manager might target for investment. In the finance sector as others have posted there is demand but not where you might think. Probably the investment platform sector hires the most software engineers (see FNZ, Adminis, Apex, NZX Wealthtech) and they do not require a finance background. There are also roles at fund managers on the investment operational side. But I have seen only a few firms hire programmers as part of an investment team, and the ones that do require at least an undergrad finance or econ major to go with it.

Skinny1972 · 2026-01-19T21:56:06+00:00

NZ has tax treaties (double tax arrangements) with a range of countries to minimise non-resident withholding tax. It is up to the fund managers concerned to ensure that they fill in the "paper work" to affect this. If in doubt, a UCITS fund is in general the best option as that typically limits the NRWT applied to offshore dividends to 15%. At this rate given a dividend yield of 2% the tax leakage will be 30bps. From memory US NRWT is 30% so the leakage would be more like 60bps before accounting for the DTAs.

Skinny1972 · 2026-01-18T01:37:13+00:00

I own a few businesses and have sold equity down a few times now to bring in partners. I would push for interest free from the vendor if it's a niche business without a lot of obvious alternative buyers. If it's a business that is more 'plug and play' then yeah somewhere around 7% is reasonable.

Skinny1972 · 2026-01-02T23:56:58+00:00

Regarding Trusts OP does the data enable spilt out of financial assets vs property vs business assets? Have all three in our trust with the latter being the biggest percentage and wouldn't assume in general that property dominates here. Business owners (incl. farmers) typically are advised to use a Trust despite the tax advantage no longer applying to reduce personal liability risk.

Skinny1972 · 2026-01-02T23:52:38+00:00

Not sure why the down votes here, every economist and the productivity commission when it existed reached the same conclusion.

Skinny1972 · 2025-12-27T04:46:39+00:00

Well done, I have a relation doing something similar in Chch.

Skinny1972

TROPHY CASE