How can I make an investment in the Funds?
We try to make it as easy as possible to invest in the Funds. There are various ways that you can purchase units:
- By cheque (new investment)
For new investors, please send a completed application form (in the back of the Investment Statement) and a cheque made payable to Fisher Funds Management Limited Trust Account, to Fisher Funds Management Limited, c/o Trustees Exexcutors, P O Box 409, Wellington 6140.
- By cheque (existing investors)
For existing investors, please fill out an additional application form if it is a different fund to the one you are currently invested in. To add to your existing investment simply send us a letter including your Unit Number and a cheque to the address above.
- By regular instalment
You can make monthly investments automatically into our Funds by direct debit from your bank account. You choose the amount you wish to invest each month (as long as it is at least the minimum specified for the Fund) and complete the Direct Debit Authority in the back of the Investment Statement for the Fund. We will deduct this amount from your account on the day indicated, until we receive instructions from you to suspend or stop your payment.
- By one-off direct credit
Please contact us on 0508 FISHER (0508 347 437) if you wish to deposit money directly into our bank account.
- Through your financial adviser
Your financial adviser can help you buy units in our Funds as part of an overall financial plan, and complete the transaction on your behalf.
I am setting up a holding for a child, what do I need to do?
Investments for children under the age of 15 must be controlled by an adult. Evidence of identity should be provided for both the child and the guardian. The holding will be set up in the child’s name but all official correspondence will be directed to the guardian. The holding will be operated by the guardian until the child reaches the vestment age determined by the guardian.
I am setting up a holding in the name of a trust, what evidence of identity do I need to provide?
The trustees of the trust should all provide suitable personal identification as outlined in the investment statement. A copy of the front page of the trust deed is required, but if an operating authority for the trust has been passed to a limited number of trustees then we will require a copy of the resolution stating that.
How do I transfer my holding to another person or trust in the same fund?
To transfer your holding to another existing holding within the same fund we simply require you to complete a Transfer Request, or write to us, quoting the unit holder number of both holdings with details of the amount to be transferred. If you wish to transfer to a new holding we will also require a completed application form for the new holding. If we already hold identification for the investors in the new holding there is no need to provide that identification again. There will be no fees charged for a transfer between holdings.
I am resident overseas, how do I go about investing in your fund?
The investment statements for the Funds are legally only able to be offered in New Zealand. Anyone investing from overseas will have to confirm in writing that they obtained or downloaded their investment statement while in New Zealand before we can accept their investment.
I do not have a Financial Adviser, can I invest directly in your Funds?
Yes, we do accept investments directly from investors. However, financial advisers can offer a range of services to investors to assist them in developing and attaining their investment goals which many investors will benefit from.
Do you provide financial advice to investors?
Our area of expertise is in funds management and while we can explain to investors the advantages of our own funds we do not offer financial advisory services. For detailed financial planning and asset allocation you should seek the services of a certified financial planner.
I am a financial adviser, do I need to set up a broker agreement with you in order to use your funds for my clients?
No, we don’t require broker agreements, but to ensure we have your details correctly recorded please complete an Adviser Contact Form and either post or fax it to us.
Which Fisher Fund should I invest in?
Following is a brief summary of the similarities and differences between the four funds:
|
Fisher Funds
International
Growth Fund |
Fisher Funds
New Zealand
Growth Fund |
Fisher Funds Australian
Growth Fund |
Fisher Funds
Fledgling Fund |
Fisher Morrison Infrastructure
Fund
|
| Objective |
Long term capital growth |
Long term capital growth |
Long term capital growth |
Blend of income and capital growth |
Income focussed |
| Permitted Investments |
Company shares listed on the sharemarkets outside of the NZX and ASX |
Company shares listed on the NZX, unlisted New
Zealand companies and bank deposits |
Company shares listed on the ASX, unlisted Australian companies and
bank deposits |
Company shares listed on the NZX
and bank deposits |
Global infrastructure assets |
| Management Fee |
1.25%pa |
1.25%pa |
1.25%pa |
1.0%pa |
1.25% p.a. |
| Performance Fee |
10% of returns in excess of the changes in the NZX 90 Day Bank Bill Index subject to a high water mark |
10% of returns in excess of the changes in the NZX 90 Day Bank Bill Index subject to a high water mark |
10% of returns in excess of the changes in the NZX 90 Day Bank Bill Index subject to a high water mark |
None |
10% of returns in excess of the changes in the NZX 90 Day Bank Bill Index subject to a high water mark |
| Entry Fee |
1% if direct, or
0-4% if via an adviser |
1% if direct, or
0-4% if via an adviser |
1% if direct, or
0-4% if via an adviser |
0-4% if via an adviser |
1% if direct, or
0-4% if via an adviser |
| Exit Fee |
None |
None |
None |
None |
None |
| Minimum Investment |
NZ$2,000 |
NZ$2,000 |
NZ$2,000* |
NZ$500 |
NZ$2,000 |
| Minimum Regular Investment |
NZ$100 |
NZ$100 |
NZ$100 |
NZ$50 |
NZ$100 |
| Distributions |
None |
None |
None |
Annually |
Quarterly |
*or its Australian Dollar equivalent sum
Feel free to contact our Client Services team on 0508 FISHER (0508 347 437) to discuss these options in more detail.
Do you hedge currency exposure in the Australian Growth Fund and International Growth Fund?
The exchange rate is constantly monitored and we may from time to time use derivatives to reduce currency exposure.
Can you please explain how fees are deducted from our investment?
The Manager charges an ongoing annual management fee, and may charge an issue fee (entry fee) and a performance fee. The annual management fee covers some of the costs involved in managing and administering the Fund, and is charged directly to the Fund in the calculation of the unit price. The performance fee, if due, is also charged directly to the Fund. There are other expenses that the Fund pays directly such as trustee, audit, printing costs etc. The unit prices quoted in the newspapers and in our communications to you have been calculated after the annual management fee and any fund expenses have been deducted, so you do not pay these fees separately. When you invest through an adviser, they can elect to charge an entry fee of up to 4%. This will be deducted from your investment and paid to the adviser. Should you invest directly with Fisher Funds we may deduct an entry fee of 1% from your investment in all Funds with the exception of the Fledgling Fund and our KiwiSaver scheme.
What exit fees do you charge when I withdraw my funds?
The current policy in all our funds is that exit fees will not be charged on withdrawals.
What is the latest MER for your funds?
The following table sets out the MER for all funds at the latest balance date:
MER at
31 March 2009 |
New Zealand
Growth Fund |
Australian
Growth Fund |
International
Growth Fund |
Fledgling Fund |
Infrastructure Fund |
|
|
|
|
|
|
| After Tax* |
1.33% |
1.19% |
1.95% |
2.08% |
1.38% |
|
|
|
|
|
|
*
excluding performance fee
The post tax MER to 31 March 2009 is calculated on the basis of a 30% tax rate. The Fund became a Portfolio Investment Entity (PIE) on 1 October 2007. Under the PIE regime, the post tax MER will depend on Unit Holders’ relevant tax rate (called a Prescribed Investor Rate) for Unit Holders who are 19.5% or 30% Unit Holders, or Unit Holders’ marginal tax rates for Unit Holders who are 0% Unit. For Unit Holders with a tax rate lower than 30%, the effective post tax MER would have been higher.
What sort of returns can we expect to get from our investment in a Fisher Fund?
We never make predictions about future returns because past performance is not a reliable guide to future performance. Returns will vary depending on share market movements, the companies selected for the Fund, and the value of dividends paid by those companies. Share prices do not always go up, especially over shorter periods of time. However, over longer time periods, 3-5 years, money invested in shares has historically “appreciated” or grown more than money invested in bonds or other securities.
Will we receive dividends or distributions and if so, how often?
The current policy for the New Zealand Growth Fund, Australian Growth Fund and International Growth Fund is not to pay any distributions. However, distributions will be paid to investors in the Fisher Funds Fledgling Fund on an annual basis. You can make a partial withdrawal of some of your units if you need to. Please refer to the How can I make changes to my investment tab.
What happens to the dividends you have received from the companies you invest in?
In the case of the New Zealand Growth Fund, the Australian Growth Fund and the International Growth Fund, the dividends are reinvested into the funds and used to purchase further shares.
Distributions received for the Fledgling Fund are passed on to investors as income.
How do I calculate the value of my investment?
All investors will be sent valuations of their holdings twice a year as at 31 March and 30 September. You can also calculate the value of your holding at any time by multiplying the number of units you hold by the latest unit price for the Fund. The unit prices for the funds are updated daily on our website, or you can phone or email us to obtain them.
How will investments in the Funds impact on my tax position?
All of our funds are registered as Portfolio Investment Entities (PIE’s). Under PIE legislation, investors benefit from:
- No tax on gains in New Zealand shares and certain Australian shares
- Investors will be taxed at their marginal tax rate with a maximum of 30%.
From 1 October 2007, PIE’s that invest in New Zealand companies and Australian resident companies that are listed on the ASX All Ordinaries Index (generally the largest 500 companies) are no longer be taxed on any gains in the value of the shares in those companies. These shares will be taxed on any dividends received.
Fisher Funds invests in growing companies which often have a low dividend yield and the majority of returns come from the increase in the value of the shares. We expect this to be the most significant advantage for investors.
Investments in companies outside New Zealand (unless they are listed on the Australian ASX All Ordinaries Index) will be taxed under the modified Foreign Investment Fund regime (FIF regime) and be taxed as if they have earned 5% total income. The income is calculated by multiplying the daily market value of the total portfolio of assets subject to the FIF regime by 5% and dividing by 365 days. Dividends from companies subject to the FIF regime are not taxed.
The second major benefit is that investors are taxed at their marginal tax rates. Previously, the fund paid tax at 33% on net income. Under the PIE regime, all income and expenses are passed through to investors and investors will be taxed at their marginal tax rates, but to a maximum of 30%. Investors on a marginal tax rate of 39% will not have to make up the additional 9%.
The PIE regime now provides tax advantages for unit trust investors over those who invest directly in shares. The reason is two fold:
- PIE’s have statutory protections against taxation on gains. Generally speaking direct investors are not taxed on capital gains either if they can show that they are not investing to make capital gains. However, there are complex and uncertain rules about whether an investor is deemed to be holding share for gain or for some other income.
- Direct investors who receive dividends are taxed at their marginal tax rates with no maximum. For investors on a 39% tax rate, that means they will be taxed at the full 39% tax rate on dividends received, where in a PIE they will only be taxed at 30%.
What do I need to do to ensure that my investment is taxed correctly?
You simply need to notify us in writing or by email of the investment entity’s IRD number and Prescribed Investor Rate (PIR). We then do the rest on your behalf. If you do not provide us with your IRD number or PIR rate then your investment will be taxed at the default rate of 30%.
How do I calculate my PIR rate?
There are three rates: 0%, 19.5% and 33% (30% from 1 April 2008). Use the chart below to identify the correct rate for your circumstances.
What should I do if my PIR rate changes?
Please advise us in writing or by email if your PIR rate changes and we will update our records. The change in PIR rate cannot be backdated and will apply from the time we are advised of the change.
Will you send me an End of Year Tax Statement?
Yes. A tax statement will be sent each April to all investors summarizing the tax on investment income position for the prior tax year (to 31 March). If you owe tax to IRD, we will sell down some of your units and pay this to IRD on your behalf. If you are due a tax refund, we will claim this from IRD and buy units in the fund on your behalf. If you withdraw from a fund, tax will be paid or refunded at that time. There is no need to include this information in your personal tax return as the Fund will have taken care of it for you.
If you would like to read more about PIE tax, the IRD website has a good overview that you can
access here.
Can I switch my investment to and from other Fisher Funds unit trusts?
Yes, any investor may switch their investment from one Fisher Funds unit trust to another. There will be no additional fees charged for any investment that is switched from one fund to another. Please complete a Switch Request and an application form from the investment statement for the fund into which you are switching your investment.
How do I make a withdrawal?
You should either complete a Withdrawal Request Form, or write to us quoting your unit holder number and give us details of the bank account you would like the proceeds paid to. The signatures of all parties who signed the original application form are required. Payments are generally paid back into your bank account 3-4 working days after receipt of the withdrawal request
How do I update or amend my contact details with you?
You can complete the Changes Form, or write to us with your new details.
Thank you for completing our "ask a question" form. A member of our team will be in contact with you shortly.
Kind regards
The Team at Fisher Funds
