Self Employed

You must be aged 18 or over (and below the KiwiSaver end payment date, which is currently the later of age 65 and completion of 5 years’ membership) to be eligible to receive the tax credit contribution. You must also be principally New Zealand resident.

 

Self employed will deal directly with the scheme provider they choose – instead of going through the IRD.

 

Because the self-employed do not technically have an employer they are not eligible for the employer contribution or the tax break on the employer’s contribution.If you are an employee at one workplace (despite being self-employed at another) then you are an employee for the purposes of the KiwiSaver Act. From 1 April 2009, the minimum compulsory employee contribution is 2%.

 

Take a look at this document summarising KiwiSaver for self-employed people. 

 

Would I be better off KiwiSaver-wise if my business was a limited liability company?

If you were paid by a company the main changes would be:

You will need to discuss the financial and other implications of forming a company with your accountant or financial adviser.

  

Growing the real value of your investment is vitally important in any long term savings plan. Simply putting your money in the bank on term deposit is safe but will see the purchasing power of your investment reduce every year as up to 38% of the interest earned can be lost in tax.

 

Even a 2% improvement in average return per year makes a significant difference in the value of your savings at retirement. The graph below clearly illustrates how much of a difference a 2% improvement makes.

 

Historically shares have provided the best long term growth.

 

Fortunately, under NZ tax regulations, capital gains from the sale of shares in New Zealand companies and Australian resident companies included in the Australian All Ordinaries Index are not taxed, which helps to increase your return relative to income-focused investments.

 

The graph below illustrates the difference in the retirement value of a KiwiSaver investment based on returns that are 4.5% p.a. and 6.5% p.a. respectively. Historically the return on growth assets, such as shares, has been more than the return on more conservative investments such as bonds.

 

The assumed returns are illustrative only and do not reflect the actual or prospective performance of the Scheme or of any investment fund. The returns to members of the Scheme are subject to investment and other risks (including loss of income and principal invested) and no amount of returns is promised or guaranteed. Returns will vary depending on the investment performance of your chosen investment fund or funds.

• We are a specialist investment manager, channelling all our efforts into achieving investment returns. Our key staff own Fisher Funds – this means that our interests are directly aligned with yours.
• We have a straightforward approach. We simply invest in good quality, proven investments. When we tell you about our investments and why we've made them, you'll see that thye just make sense. 
• We try to know more about our companies than any other investor. We visit them often, know them well, and in many cases, have owned them for a very long time.
• We choose our share investments company by company and only invest after we have completed a thorough analysis of each business, its competitors and its management. We believe that this thorough research approach minimises the risk of nasty surprises.
• Our approach has been time-tested over twenty years. We recognise that past performance is no guarantee of future results, however our investment style has been successful in good times and bad.  We are the top performing NZ equity Fund Manager over the last 7 years (as measured by FundSource & Morningstar). 
• Open and honest communication = transparency. Since Fisher Funds establishment in 1998 we have found that investors appreciate knowing where their money is invested and why.  We send a monthly newsletter keeping you up to date on where your savings are invested, the performance of each Fund and developments in KiwiSaver.  Our website is updated regularly with latest unit pricing and material announcements and you can also access your KiwiSaver account online 24/7. 
• Investment custody = security.  All investments are held in the name of the Scheme by TEA custodians Limited (a subsidiary of Trustees Executors Limited, NZ's oldest trustee company). Trustees Executors Limited supervises over $29 billion of investor's assets.

           Our mission is to make KiwiSaver easy for you from the day you join until long after you retire!

The Scheme offers both a Conservative Fund and a Growth Fund, giving you flexibility as your investment needs change. You may choose either Fund or a combination of the two in any ratio you choose.

 

The Growth Fund seeks to grow the real value of your KiwiSaver savings by principally investing in the shares of growing New Zealand, Australian and International companies. This is the Fund that really differentiates our Scheme from other KiwiSaver providers. If you are seeking to achieve higher returns over the long term this is the core Fund to invest some or all of your KiwiSaver savings in.

 

The Conservative Fund has an emphasis on capital preservation, seeking secure investments to achieve returns better than bank term deposits over the long term. The Conservative Fund may invest in all or any of a range of different asset classes principally comprising cash, fixed interest, shares, infrastructure securities and property securities both in New Zealand and internationally.

 

The Growth Fund focuses its investments in the shares of smaller, growing New Zealand, Australian and other International companies that have the potential for substantial business growth. Smaller companies tend to be overlooked and under-researched by other investors, giving us the opportunity to find some real gems. We also prefer smaller companies because they are usually easier to understand, compared with large multi-faceted corporations.

 

It is not our intention to buy shares in new or unproven companies, nor do we look for bargain stocks. We look for quality. Once we buy shares in a company, we generally hold them for the long term, unless the fundamental reason for buying no longer exists. After all, if you find a great business, why would you not want to hold on to that business forever?

 

History has shown that companies who consistently grow their profits will increase the value of their business and hence their share price over time. This is at the core of how Fisher Funds achieves attractive long term returns.

 

We are close to all our Portfolio companies, visit them regularly and get to know the management teams well. We never invest in a company without first meeting the management and we pride ourselves on the relationships that we have established with the management teams of many successful businesses.

 

We are stock pickers who invest in companies on the basis of their individual merits. The company that we like the most will have the largest position in the Fund. Our portfolios are concentrated, typically having between 10 and 20 stocks in each of New Zealand and Australia at one time and 30 to 40 internationally. We do not want too many holdings, diluting our efforts and knowledge, but we want enough to reduce the risk if something goes wrong. We believe there will always be companies that will do well, irrespective of the economy or market environment. We are constantly searching for these businesses.

 

We have the ability to invest in both listed and unlisted companies. However you can generally expect that at least 90% (by value) of the Growth Fund portfolio will be investments in listed companies. Although we like the idea of buying an unlisted company at a relatively low price, we are mindful that the listed environment gives us greater protection and ensures that we get regular information about each company.

 

Our investments favour smaller, growing companies. However if a company grows to become a large company, it is our intention that the Scheme will maintain its holding as long as it remains an attractive investment. If we find a company that otherwise meets all our criteria, we will not exclude it from the Portfolio based on size.

 

The Conservative Fund’s goal is to achieve returns better than bank term deposits over the long term. Its focus is on preserving your capital and protecting the purchasing power of your investments against inflation. The Conservative Fund may invest in cash, fixed interest, shares, infrastructure securities and property securities locally or internationally. The amount invested in each asset class will change when we think one asset class might be better than another. However, generally you can expect around 80% (by value) of the Conservative Fund portfolio to be invested in “income” assets such as cash and fixed interest, with around 20% invested in growth assets such as shares, infrastructure and property.

 

Fisher Funds understands that every investor has different investment goals (and timeframes in which to achieve these) and varying appetites for risk. We have developed our Scheme to allow you to select or tailor a KiwiSaver investment strategy that meets your needs.

 

Before choosing your investment strategy, it is important that you think about your investment timeframe (how long you have to save until your retirement) and your investment goals (are you saving to buy your first home or growing your savings for retirement?).

 

We think growth assets such as shares are important, as most KiwiSaver members have a long time to save for their retirement. Historically, investing in growth assets has produced better long term returns than investing in other asset classes, minimising the impact of inflation over time on your savings.

 

If you are nearing retirement or saving for your first home, you may want to have a more conservative investment approach. Income assets such as cash and fixed interest typically produce more stable returns in the short term.

 

 

 

 

 

 

* The above indicative sector allocations for, respectively, the Growth Fund and the Conservative Fund are based on the currently anticipated long term sector allocations for each Fund. The sector allocations may change from time to time at Fisher Funds’ discretion and there are no formal sector or asset allocation benchmarks. Additionally, the sector or asset allocations for the “Balanced” option may change from time to time at Fisher Funds’ discretion.

 

This section is a guide only. If you have specific retirement needs, or are unsure about which Fund or strategy to choose, please see a financial adviser.

Click here to see HOW WE COMPARE...

Current Unit Price (as at 17 March 2010) $1.0746

Fund Size (as at 28 February 2010)

  

You can either: 

a. Complete our online application form, or
b. Contact our team on 0800 FFKIWI (0800 335494) or complete the form below to receive a KiwiSaver information pack:

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Complete and sign the Application Form (on pages 25-26 of the Investment Statement).

Before sending in your Application Form, please be sure to do the following:
1. Read the How to Join section on pages 23-24 of the Investment Statement
2. Sign the Application Form
3. Include a copy of your identification as required
4. Keep a copy of your Application Form 

 

 

  

Return the original Application Form by post to:
Fisher Funds Management Limited
C/- Trustee Executors Superannuation Limited
PO Box 409
Wellington, 6140

 

If you are an employee, please ensure that you inform your employer that you have selected Fisher Funds as your KiwiSaver scheme provider, how much you want to contribute (i.e. 4% or 8%) and when you want your contributions to start. As you have dealt directly with Fisher Funds you do not need to complete the IRD’s KS2 form.

You and your employer will also receive written confirmation from the IRD that you have joined our scheme. Please be aware that there may be delays with the IRD process.

You can keep track of your balance and transactions via our online access facility which updates daily.   The unit price for the Fisher Funds KiwiSaver Scheme is also updated on our website daily.   You will also receive quarterly transaction statements and an Annual Report from the trustees of the Fisher Funds KiwiSaver Scheme.