Term Definitions

A PIE (Portfolio Investment Entity) fund is a type of New Zealand managed fund with its own tax rules. Many PIE funds calculate and pay tax on investment income using each investor’s prescribed investor rate (PIR), while some listed PIEs are taxed at a fixed rate. In many cases, income from a PIE fund does not need…

InvestNow Term Deposit Distribution Fee InvestNow earns a distribution fee of 0.10% for the Term Deposit (TD) service.  This fee does not result in any additional fees for you, or reduction in the interest rate you receive, for the Term Deposit(s) you invest in. The rate you receive for the TD you invest in is…

Sector: Sector refers to the type of asset the managed fund invests into, such as a diversified fund, cash fund, listed property fund, etc. PDS Fee: The PDS fee is the annual management fee estimate as stated in the Product Disclosure Statement (PDS) for this fund. QFU Fee: The Quarterly Fund Update (QFU) Fee is…

A diversified fund invests in a range of asset classes, regions, and/or industry sectors.  Each of these assets have different characteristics eg their values may not all rise or decline at the same time.  Investing in a range reduces the potential risk that anyone sector/region/industry can have on the overall performance of the fund –…

IRD stands for “Inland Revenue Department”. An IRD Number is a unique tax number given to you by the Inland Revenue Department of New Zealand so that you can pay the correct work taxes as you work in New Zealand.

Buy/Sell spreads When you buy or sell units in a fund, you may be charged a buy or sell spread. The buy spread is added to the unit price when you buy units, and the sell spread is deducted from the unit price when you sell units. For example: if you invest $10,000 into a…

An Investor is the entity (Youth, Individual, Joint, Trust or NZ Company) that has an account with InvestNow – it is the beneficial owner, in whose name that the investments are held. A Member (also known as a Client) is an individual, or individuals, that have access to the Investor account i.e. they are “linked”…

Cleared funds are monies in your Transaction Account that are available to be either invested or withdrawn.

An Investor is the entity (Youth, Individual, Joint, Trust or NZ Company) that has an account with InvestNow – it is the beneficial owner, in whose name that the investments are held. A client (also known as a Member) is an individual, or individuals, that have access to the Investor account i.e. they are “linked”…

Resident Withholding Tax (RWT) is a tax deducted from the gross amount of interest, for the relevant investment and saving products, paid to you. When you open an InvestNow account, you will be asked to confirm your RWT rate and IRD number. If we do not have an IRD number your account will be taxed…

When you open your InvestNow account you are asked to provide the details of a nominated bank account (nominated account). You deposit money into your InvestNow Transaction account from your nominated bank account and when you withdraw money from InvestNow it is transferred to your nominated bank account. The nominated bank account must be under…

Each InvestNow account has a “Transaction Account” – it’s just like a bank account for money coming in and out of your InvestNow account. Currently no interest is paid to you on your balance within the Transaction Account. We receive the interest on any money held within the Transaction Account.  This interest is used to…