Features and benefits
How does it work?
How much do I invest?
Are there any hidden costs?
How do I cash in my investment?
Who is AXA Global Investors?
Whom do I contact with enquiries or complaints?
Who can obtain personal information about me in connection with this investment?
What is a PIE?
What is PIR?
Why do I need a PIR?
Do I have to file a tax return if I invest in Premium Plus?
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- Pay less tax
- Low risk
- No fees
- Minimum investment $5,000
- Monthly compounding effect
- Regular savings and withdrawals
- Deposit via direct debit if you prefer
- Online access
- Half yearly reporting
- Annual tax statement
- Access to Spicers 0800 enquiry line
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Premium Plus is a "cash PIE" product - which means the tax on your income is limited to a maximum of 30%. The New Zealand government has allowed this tax benefit for "PIEs" (Portfolio Investment Entities) to encourage Kiwis to invest their money in savings.
This means that investors currently in the 33% or 39% tax bracket can benefit by either an extra 3 or 9 cents in the dollar. By placing their cash in Spicers Premium Plus, the tax rate is a maximum of 30% on income from Spicers Premium Plus.
Investors currently in the 19.5% tax bracket will continue to be taxed at 19.5%, with the same rate of return as investors in higher brackets.
Your funds invested in Spicers Premium Plus are accessible. Unlike a fixed term investment you can generally access your funds within 2 - 3 days following receipt of your written request, but like a fixed term investment you will still earn a competitive rate of return.
The trust allows investors to pool their funds and access investment markets with professional management.
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You choose the amount you wish to invest, however this must be $5,000 or more for your initial investment. You can also make regular contributions by direct debit at a rate of $150 per fortnight, month or quarter.
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There are no management fees or fees for putting your money in, taking it out, or looking after the money. This means that in respect of the Premium Plus fund there is currently no manager’s fee and any trustee fees, costs and expenses are met by the manager and are not passed on to the trust.
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You may withdraw part or all of your investment at any time and should contact your adviser to action this.
Withdrawals will usually take place effective the next valuation day following receipt of your written withdrawal request, as long as your request is received by the Manager prior to 5pm on the business day preceding that valuation day. The withdrawal will normally be processed the business day following the effective valuation day, but must happen within five business days. Funds may initially be transferred to your Cash Management Account (depending on the Spicers’ service your investment is made through - refer to details contained within the terms and conditions section of the application form) and then credited to your nominated bank account on the date of processing.
Valuation days usually occur each business day. No fees are payable for withdrawals.
When you are considering the value of your investment, it is important to bear in mind that a portfolio valuation showing the value of your units may not make any allowance for tax that may be deducted at your prevailing PIR on full withdrawal or at the end of the year. Please check with your adviser if you need confirmation as to whether or not any valuation of your investment that you obtain makes allowance for current year tax.
Withdrawals are able to be suspended by the Manager, but may not be suspended for more than 90 days without the approval of the Trustee.
For more information on cashing in your investment see the Spicers Premium Plus investment statement.
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AXA Global Investors Ltd is the fund manager of Spicers Premium Plus and as such has the power to decide the underlying investments of Spicers Premium Plus. AXA Global Investors currently manages assets in excess of $NZ5.3billion. The team comprises a number of experienced investment professionals operating in the area of portfolio design, economic and investment research and product development.
Security selection within each asset class is outsourced to specialist investment managers that are carefully chosen by AXA Global Investors. On a regular basis AXA Global Investors meets with, assesses and reviews alternative, potential and incumbent managers within each asset class.
Further information on AXA Global Investorscan be found by clicking here.
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All enquiries should in the first instance be directed to your adviser at his or her local number or on 0800 102 100 or to the Head of Client Service at Assure New Zealand Limited at AXA Centre, 80 The Terrace, Wellington 6011, by phoning 04 474 4844 or faxing 04 474 4870, or writing to PO Box 603, Wellington 6140.
If there is an issue which cannot be resolved to your satisfaction by your adviser you should contact the Head of Client Service at Assure New Zealand Limited at AXA Centre, 80 The Terrace, Wellington 6011, by phoning 04 474 4844 or faxing 04 474 4870, or writing to PO Box 603, Wellington 6140.
If the Manager cannot resolve any matter relating to your investments to your satisfaction you should contact the Trustee, c/- The Relationship Manager, Corporate Trusts, The New Zealand Guardian Trust Company Limited, at Level 7, Vero Centre, 48 Shortland Street, Auckland 1010, or by telephoning 09 377 7300.
There is no ombudsman to whom investment complaints in respect of these trusts can be made. However, the normal legal remedies are, of course, available to you.
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The Trustee and the Manager will at all times respect and protect the confidentiality of all information received from and about you, not being publicly available information, and will not disclose any of it without your prior written consent to any third party, except as is required by law or in order to obtain reductions in withholding or other taxes or to obtain other benefits for you. Such personal information is collected and held by the Manager at the AXA Centre, 80 The Terrace, Wellington 6011, and by Spicers at Level 22, Qantas House, 191 Queen Street, Auckland 1010. You will be asked to acknowledge that all information about you and disclosed by you may be used by the Trustee or the Manager for the purpose of managing your investment in the trusts that comprise your portfolio and may be used by the Manager to send you information relating to any investment or other products or services that the Manager considers may be of interest to you.
Under the Privacy Act 1993 you can request access to and correction of any information held by the Trustee or the Manager and you agree to inform your adviser or the Manager of any changes that you require to the information held.
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The term PIE stands for Portfolio Investment Entity. This means that all taxable income, losses and tax credits relating to the investment of Spicers Premium Plus will be allocated to you each day in proportion to your unit holding in Spicers Premium Plus. Income will be taxed at your elected Prescribed Investor Rate (PIR).
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PIR stands for Prescribed Investor Rate, sometimes referred to as your PIE tax rate. It is possible for your PIR rate to be different to your usual marginal income tax rate. We recommend you check with Inland Revenue to confirm your correct PIR rate, and that confirmation needs to be passed on to your Spicers adviser to keep on record with your investment details. NB: If you don’t provide your PIR and IRD numbers to Spicers at the same time, your PIR is automatically set at 30%.
If you do not advise us of any change, or provide an incorrect PIR, you may end up paying too much tax on your investment, or you may have an obligation to pay further tax and file a tax return.
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A PIR is necessary to ensure that you are paying the correct tax rate on your PIE income.
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Spicers pays tax and claims rebates on behalf of our individual clients, so you will not have to file a tax return specifically for your Premium Plus investment. Your tax payment will be automatically deducted at your PIR rate from your investment balance at the relevant time annually.
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Spicers can point you in the right direction when it comes to achieving your financial goals and dreams. Contact an adviser right away for a no cost and no obligation initial discussion.
The Spicers Premium Plus Investment Statement is available here.
The Spicers legal disclosure statement is available on request and free of charge by phoning tollfree on 0800 102 100, or by email at spicers@spicers.co.nz. Alternatively, a copy of the legal disclosure statement can be downloaded here.