Businessmen who open an investment fund in New Zealand can choose to register a managed fund, which is administered by a professional fund manager. An alternative is to set up an exchange-traded fund (ETF) which is listed on a regulated market.
If you want to set up a company in New Zealand or are interested in investment fund creation, our local team can answer your questions and provide assistance during the setup and the needed registration.
For those who set up an investment fund in New Zealand, the provisions of the Financial Markets Conduct Act 2013 are relevant, along with the provisions to register the fund with the Disclose Register, which includes all of New Zealand’s financial products and managed investment schemes.
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Managed funds and ETFs in New Zealand
Investment funds can be active or passive, as well as a combination of both. Active funds are managed by a professional, and investors who are keen on setting up an investment vehicle may frequently choose to open this type of fund.
Managed funds in New Zealand, which are the same as mutual funds in other jurisdictions, have the following characteristics:
- They are investment vehicles that allow multiple investors to pool their resources;
- Some allow investments in a single asset (most often shares), while most of them allow the option to invest in different types of assets (shares, property, bonds, etc.);
- Most often they are actively managed, meaning that those who set up an investment fund in New Zealand will need to appoint a professional fund manager;
- Several types of managed investment funds are available to the general public in New Zealand, and these include the defensive funds, the conservative and the balanced fund, the growth fund, and the aggressive fund.
Investors can also set up an investment fund in New Zealand known as the Portfolio Investment Entity fund, which offers a lower tax rate to investors.
The exchange-traded fund is also a type of managed fund, however, it is listed on a regulated market and our team specializing in New Zealand company formation can give you more details about the listing requirements. In general, these are single-asset funds, and they are open to more experienced investors. Both managed funds and ETFs are part of the category known as Managed Investment Schemes.
Fund information and management in New Zealand
Investment managers need to comply with a set of specific rules and meet the due diligence requirements. Moreover, fund managers have to comply with the requirements of the Disclose Register, part of the New Zealand Companies Office, which keeps a record of the schemes offered to the public.
The fund data provided to the authorities by investors who open an investment fund in New Zealand include the following:
- Fund details such as its name, status, classification, risk indicator, and the total value of the fund, among others;
- Fund performance, information focused on the market index description, yearly returns, and others;
- Fees: information about the basic fee for the fund manager, the annual fund charge, etc.;
- Investment mix and top ten investments according to type, percentage of fund net assets, country, etc;
- Asset liquidity and debt ratios, key personnel, and certain fund documentation.
Some of the fees that apply in the case of managed investment schemes registered with the Disclose Register include the following:
- Management scheme registration fee of NZD775 including GST;
- Annual report filing fee of NZD275;
- Financial statements filing fee of NZD293.25.
Our team specializing in company formation in New Zealand can give you more details about investment fund structuring, the role of the fund manager, and other compliance requirements.
If you would like to know more about a different topic, such as how to start a business in New Zealand, our team will answer your questions.
Our team can help you with all matters relating to company registration in New Zealand and ongoing compliance for all types of legal entities. You can also rely on our team for branch creation.
Contact us if you want to know more about the rules and the requirements applicable to those to open an investment fund in New Zealand.