Money pours into poor performers - 27 July 2010
Some of the worst-performing KiwiSaver funds have attracted the most money, data from Morningstar show. click here to read more. For some reason the NZ Herald have ommitted our KiwiSaver Growth Fund (which is the best performing growth fund in the two years to 30/6/10) from the growth category.
KiwiSaver funds double with 1,000 joining daily - 1 July 2010
Investors have $5.5 billion in KiwiSaver funds, more than double the amount a year ago, with 1000 new members joining every day, according to an investment strategist. click here to read more
Budget provides even greater reward for KiwiSaver members - 21 May 2010
Whilst cuts to personal income tax rates have taken the limelight in this year's Budget, KiwiSaver members will also be better off thanks to the Government’s desire to see New Zealanders invest and save rather than spend
click here to read more
Carmel on NZI Business - 10 March 2010
Carmel discusses the impact of recent merger and acquisition activity and shares her thoughts on the fast tracking of tighter regulation for KiwiSaver providers
click here to read more
Energy giants bid good for KiwiSaver Fund - Fisher Funds - 9 March 2010
Royal Dutch Shell and PetroChina yesterday made a takeover bid for Australian coal seam gas company, Arrow Energy, reported to be worth at least $A3.3 ($4.3) billion. Fisher Funds described it as “another windfall” for investors, including those in its KiwiSaver scheme.
click here to read more
Takeover for Arrow Energy - 9 March 2010
Renewed takeover activity in international markets is bringing another windfall to Fisher Funds investors, but this time in the Australian market.
click here to read more
Will the real fund manager please stand up? - 8 March 2010
An opinion piece by Carmel Fisher on the Huljich KiwiSaver saga
click here to read more
Hat Trick for Fisher International Funds - 4 March 2010
A third takeover offer for one of its international portfolio companies since early January has lifted the value of units in the Fisher Funds International Growth Fund and the Fisher Funds KiwiSaver Scheme
click here to read more
Morningstar Quarterly KiwiSaver Survey - 23 February 2010
Read Morningstar's latest survey and commentary on the performance of KiwiSaver Schemes to date. The Fisher Funds KiwiSaver Growth Fund is the best performing growth or aggressive fund in the 12 mths to 31/12/09 and the 2nd best over two years
click here to read more
More Corporate Activity for Fisher Funds - 20 January 2010
Fisher Funds is considering the potential benefits of a second takeover of one of its key international shareholdings just days after investors in three of its funds benefited from the takeover offer by Shiseido for United States-based Bare Escentuals.
click here to read more
Takeover offer provides boost to Fisher Funds International portfolios - 18 January 2010
A takeover offer for an American company by Japanese cosmetics giant Shiseido will provide an early 2010 boost for three New Zealand funds managed by Fisher Funds.
click here to read more
Funds begin to peg back losses - 18 November 2009
Fund manager Mercer's second quarterly KiwiSaver Survey shows growth funds performed best in the period, producing a median return of 10.8 per cent..
click here for more
Law tightens on signing juveniles as KiwiSavers - 16 November 2009
The laws on children being signed up to KiwiSaver are to be tightened to stop well-meaning family members from joining them up to something they cannot get out of
...
click here for more
Update on introduction of portability of Aussie Super Scheme money - 5 November 2009
Media statement from Bill English,
click here
Morningstar 6 monthly KiwiSaver Survey - 16 October 2009
Read Morningstar's latest survey and commentary on the performance of KiwiSaver Schemes to date,
click here
Our Thoughts - Ken Applegate in China - July 2009
Ken reviews his recent trip to Asia, the key investment themes emerging and how he is tapping into these with his international portfolio...
click here
Our Thoughts - the package or the contents - 18 June 2009
Gareth Morgan's recent tirade has focused attention on unit trusts and whether this structure serves investors' interests....
click here
Fisher KiwiSaver bucks the trend - 11 June 2009
Fisher Funds is bucking the trend towards consolidation among KiwiSaver providers by launching a new Conservative Fund...
click here
KiwiSaver hits the magic million - 2 April 2009
More than one million New Zealanders are now saving for their retirement through KiwiSaver...
click here
Fisher Funds and Morrison & Co announce strategic partnership - 14 November 2008
Fisher Funds today announced a new strategic partnership that will see HRL Morrison & Co take a 26% shareholding in the company...
click here
KiwiSaver breaks through 800,000 mark - 19 September 2008
The number of New Zealanders saving for their future through KiwiSaver has passed 800,000...
click here
KiwiSaver breaks through half million mark - 25 March 2008
The Prime Minister, and the Finance and Revenue Ministers announced today that half a million New Zealanders were now enrolled in a KiwiSaver scheme....
click here
Responsible Investments for KiwiSaver schemes - 5 September 2007
KiwiSaver schemes will be required to disclose their approach to responsible investment from 1 April 2008...
click here
KiwiSaver Enrolments Hit 130,000 - 31 August 2007
The latest enrolment numbers for KiwiSaver confirm that the work-based saving scheme is off to a strong start ...
click here
KiwiSaver Fees & Returns Comparison - 30 June 2007
To review the NZ Herald’s comparison of fees and returns across Kiwisaver providers ...
click here
KiwiSaver Update - 21 June 2007
The Government has made KiwiSaver so attractive it is now a “no brainer” for most people ...
click here
Have you worked in Australia at any time since 1992?
If so, you’ll soon be able to bring your compulsory Aussie Super back to NZ.
In mid-2009 the NZ and Australian Government’s signed a Memorandum of Understanding to establish a trans-Tasman retirement savings portability scheme enabling New Zealanders to transfer their Aussie Super Funds back to NZ and vice-versa.
Click here to read the press release.
Legislation has now been drafted, introduced to Parliament and is expected to be in force in 2010. There are a number of points of clarification in the legislation. Importantly, you will be able to access your Aussie Super at age 60 (if retired) instead of age 65 for Kiwisaver. That's great news.
For more detail on the legislative in's and out's,
click here to read the Bill.
Don’t know where your Super is or if you have any?
You’re not alone! It is estimated that up to $A5 Billion of “lost” Super is owned by New Zealanders. Even if you picked fruit in Queensland for a couple of months one summer you will have made Super contributions. Who knows how much you may have unwittingly invested and forgotten about?
The Australian Tax Office website provides some tools to help you track down your Super.
Why transfer your Aussie Super back to NZ?
There are several reasons why transferring your Aussie Super back to NZ makes sense.
Firstly, you’ll now have all of your retirement savings in one place. You’ll have greater visibility of this money and what is happening with it. Also, if you are planning to retire in New Zealand, you probably want to know what your nest egg is worth in New Zealand dollars.
Secondly, you are probably paying at least two sets of fees. Consolidating your super into one KiwiSaver account can reduce the total cost. It is also possible that you might have more than one super account in Australia if you changed jobs when you were there.
We can help you
Regardless of whether you currently have a Fisher Funds KiwiSaver account, we can help you track down and bring back your Aussie Super to NZ.
We understand that your time is precious so we want to take away the hassle and do the leg work for you so that by the time the Scheme is in law we have everything ready to go.
To authorise Fisher Funds to act on your behalf and make arrangements to bring your Aussie Super back to NZ please download, complete and send the below forms into our office.
If you would like to discuss your Aussie Super in more detail, feel free to email us or call us on 0508 347 437 and we can walk you through the process.
What is a Member Tax Credit?
Each year, the Government matches each member’s own KiwiSaver contributions (for members aged 18 and over) up to $1,042.86 / year – this works out to $20 per week. This payment is known as a Member Tax Credit (MTC).
Who is eligible?
To qualify for the member tax credit:
• you must be 18 or over, and
• your principal place of residence must be in New Zealand
A few limited exceptions apply –
click here for more details
How much MTC you can get?
To get the full MTC automatically you have to contribute at least $1,042.86 a year yourself. Employer contributions and government contributions do not count.
If you contribute less than $1,042.86 from your pay, you can make voluntary contributions to ensure you receive the full member tax credit payment from the Government.
Joining part-way through a year
If you join KiwiSaver part-way through a membership year (1 July to 30 June), you’ll receive a MTC for the portion of the year that you've been a member.
When you turn 18, you’ll receive a MTC for the portion of the year that you’re 18.
To learn more about MTC and how it is calculated
click here
How do I claim my MTC?
Fisher Funds claims the MTC on member’s behalf once a year following the end of each KiwiSaver year (30 June). IRD are required to process the claim within 30 days of receipt. There is nothing for individual members to do.
The MTC is paid directly into your KiwiSaver account and shows as a separate item on your transaction statements.
Please note that the MTC is not a cash payment or reduction in your annual tax return and is invested directly into your KiwiSaver account.
Transferring Your UK Pension Scheme Funds to the Fisher Funds KiwiSaver Scheme
The Fisher Funds KiwiSaver Scheme, is certified by HM Revenue and Customs as a QROPS Scheme (Qualifying Recognised Overseas Pension Scheme) and is able to accept transfers of UK Pensions.
To transfer your UK Pension into your KiwiSaver account, please provide us with written authorization (confirming your current UK pension provider details and policy number) and we’ll get the process underway.
- We’ll then contact your UK Pension Scheme and request the appropriate transfer forms and obtain a current transfer valuation.
- Fisher Funds will receive this information and will then forward the relevant forms on to you to complete, you then return them to us to complete our QROPs requirements and we return them to the UK Pension Scheme.
- Your UK Pension Scheme will make a lump sum GBP payment to us and this will be immediately converted to NZD and deposited into your Fisher Funds KiwiSaver Account.
The whole process usually takes about three months and our service to you is free.
What Happens To The Money?
The funds will be invested into your Fisher Funds KiwiSaver account and subject to the existing rules of the Scheme.
The Fisher Funds KiwiSaver Scheme is a PIE (Portfolio Investment Entity) so your investment income is taxed at either 19.5% or 30%. Tax is calculated and paid on your behalf by the Scheme manager.
With limited exceptions, the funds will be locked in until you are eligible to withdraw from KiwiSaver (currently the later of reaching age 65 and completing five years' membership). There will be no further tax payable on withdrawal. You will be able to withdraw the money in a lump sum, or as incremental withdrawals.
What Are The Benefits Of Transferring?
Once your funds are transferred they will be subject to the rules of our KiwiSaver Scheme, including being able to access your funds as a lump sum at NZ Superannuation age or (if later) when completing five years' membership.
Your funds will be managed in NZ rather than in the UK providing you greater access to how your funds are performing and access to the fund provider in your own daytime. You won't have the problems of dealing with an overseas fund provider in another time-zone.
You will be able to manage your risk better as you will not be exposed to the foreign exchange risks of having your pension in GBP rather than NZD where you are living.
What You Should Know Before You Transfer
You can only transfer your UK pension to a NZ superannuation scheme or KiwiSaver scheme free of additional taxes, if that NZ superannuation scheme or KiwiSaver scheme has been certified QROPS compliant by HM Revenue and Customs. The Fisher Funds KiwiSaver Scheme is QROPS certified.
You will then be subject to the KiwiSaver lock-in provisions, even if under the UK pension rules you may have been able to access the funds earlier. KiwiSaver funds are locked in until the later of NZ Superannuation age, currently age 65, or five years of membership of KiwiSaver. There are very limited (for example, financial hardship and serious illness based) early withdrawal facilities.
You risk extra taxes imposed by HM Customs and Revenue if you try to withdraw, or to transfer your funds to an unapproved scheme, during the "penalty period" imposed by HM Customs and Revenue. These taxes could be in excess of 40% of the original transfer value of the funds. The "penalty period" expires when you have no longer been a UK tax resident at any stage during the previous five UK tax years (6 April to 5 April) or at any stage during the current UK tax year.
A transfer from a UK Pension scheme to a QROPS is a benefit crystallisation event. So if the amount of the transfer is over your remaining lifetime allowance, a lifetime allowance charge will be levied. However, because the payment is not to you as an individual, the rate charged will be 25%, not 55%, despite the fact that the end benefit from the QROPs will be a lump sum. This means that the amount in your UK pension scheme which exceeds the lifetime allowance (currently GBP1.65m, rising to GPB 1.75m in 2009/2010, then GBP 1.8m in 2010/2011) will be reduced by 25% when transferred.
The QROPs rules are subject to change (which could be adverse). For up-to-date advice you should check the current rules at www.hmrc.gov.uk/pensionschemes, (and in any case you should talk to a professional tax adviser, for advice relevant to your own circumstances).
First Home purchase withdrawal & First Home deposit subsidy
One the benefit’s of KiwiSaver is that it provides help to eligible members for purchasing their first home.
From 1st July 2010 KiwiSaver members will be able to apply to withdraw their own and their employers contributions to use towards a first home purchase. This is known as first home purchase withdrawal. At the same time you will be able to apply for a first home deposit subsidy.
First home purchase withdrawal
Who can apply for this?
The criteria to withdraw funds for first home purchase are:
- You must be 18 years or over
- Three or more years have passed sine Inland Revenue received the first KiwiSaver contributions in respect of you (or since you first joined a KiwiSaver Scheme
- You have never made a home purchase withdrawal
- You intend that the relevant land will be your principal place of residence; and
- You have never owned an estate in land (limited exceptions apply)
How do you apply for this?
If you have owned a property before and your financial position is considered the same as a first home buyer you may be able to apply to Housing New Zealand to be considered for a withdrawal as a ‘second chance’ home buyer. Go to
http://www.hnzc.govt.nz/ for more details.
How do you get the funds?
The funds will be transferred to your solicitor’s trust account prior to be settlement and will be paid to the vendor as part of the purchase price. If the agreement is not completed then your solicitor will pass the funds back to Fisher Funds to be reinvested in your KiwiSaver account.
First home deposit subsidy
A first home deposit subsidy of $1000 per year of contributions, up to a maximum of $5000, may be available to members who qualify for the first home purchase withdrawal. You can buy a property with other people in which case you may all qualify for a deposit subsidy. You may only receive the deposit subsidy once.
Who can apply for this?
To be eligible for the deposit subsidy, you must:
- be 18 years or over
- not own any other property
- have not received a deposit subsidy before
- have contributed at least the minimum percentage of your income to a KiwiSaver scheme, complying scheme or exempt employer scheme for at least three years (does not need to be consecutive).
- have a combined yearly income of $100,000 or less (before tax) for one or two buyers
- have a combined yearly income of $140,000 or less (before tax) for three or more buyers
- buy a house within the maximum house price caps. The house price caps are $400,000 for Auckland City, North Shore City, Rodney District, Wellington City and Queenstown Lakes District and $300,000 for all other areas. Manukau City, Waitakere City, Franklin District and Papakura District are considered ‘other areas’. The new Auckland boundaries under the new Auckland council does not take effect until 1 November. The house price caps will be reviewed then.
- you must live in the house, or apartment (if you don’t, you have to pay the deposit back)
- you cannot use the deposit subsidy to buy an investment property
- if you are buying land, a house must be built within 12 months of purchase. You will need to supply a code complance certificate to show that this has been done
- if you are building on land or buying an apartment that is being built, you must show:
- you will have funding for the construction of the building
- the total cost of both the land and the house or apartment is within the house price caps
- the land or site is ready to build on
How do you apply for this?
Housing New Zealand will be administering this subsidy and you can find out more details on the
Housing New Zealand website. The Revenue Minister, Peter Dunne, has advised that any KiwiSaver members who qualify for the First home Deposit Subsidy will not be taxed on the subsidy.
Can I get the get the deposit subsidy without withdrawing my funds?
Yes. If you would like to leave your funds in KiwiSaver but want to apply for the deposit subsidy you can do that. You do not need to apply for both.
