Managed funds offered by financial advisers Spicers Portfolio Management have been converted to Portfolio Investment Entities (PIEs), ensuring the company’s clients are among the first to benefit from the 1 October 2007 investment tax changes.
Spicers Chief Executive Officer Gordon Noble-Campbell says investors will be taxed in line with their personal tax rate on income from any managed fund that is a portfolio investment entity (PIE).
"For many investors, managed funds will now provide tax savings as well as the benefits of diversification and external investment expertise. The changes have leveled the playing field making managed funds even more attractive as an investment option in comparison to other types of investment such as residential property.”
Mr Noble-Campbell says Spicers has spent the last 12 months changing its products, systems and processes to ensure they met the criteria to be converted into PIEs.
“We wanted our clients to receive the benefits as early as possible. It reinforces our commitment to consistently delivering excellent service and performance to clients.”
He says managed funds have always been appealing to investors because of their ability to increase buying power by pooling money and gaining access to foreign companies.
"Looking at other parts of the world, managed funds have played an important part in wealth creation for some time, so it’s great that New Zealanders now have a strong reason to increase their stake in this type of investment."