IVCM targets int’l investors with relaunched New Zealand Rops

Added 23rd August 2016

IVCM, formerly Brooklands Pensions, is reopening its New Zealand recognised overseas pension scheme (Rops) and will include funds managed by Emirates NBD Asset Management and Vanguard Investments Australia.

IVCM targets int’l investors with relaunched New Zealand Rops

IVCM group chief executive Paul Evans said the relaunched New Zealand Portfolio Investment Entity (PIE) Rops, with the addition of the new funds, would offer a much greater range of investments than the original product.

He added: “With the added inclusion of good quality Australian dollar (AUD) investment options, we expect this scheme will also appeal to Australian investors.”

While it also offered international investors attractive tax advantages.

Evans explained that in New Zealand a PIE fund allows resident clients to pay tax at their elected Prescribed Investor Rate (PIR) of up to 28%. However, if a client is not a New Zealand resident they dont have to pay any tax.

Benefits paid out of a New Zealand Rops, formerly known as Qrops, are free of tax in New Zealand, making it a jurisdiction that does not have to rely on double tax treaties to be attractive, he said.

Tax advantage

Dannie Fox, regional managing director of IVCM believes that the New Zealand PIE fund will have a significant tax advantage over other Rops jurisdictions for international residents.

"[Not] having to rely on double taxation treaties and with the ability to make unlimited contributions either from UK Pension source or otherwise, means that this is an extremely attractive superannuation plan in an excellent jurisdiction.”

Closure

The original IVCM (NZ) PIE Superannuation Fund closed to new members in December 2014 following the introduction of new legislation in New Zealand.

That fund also experienced lower-than-expected client numbers, which the company mostly attributed to under performance of the absolute return strategies within the fund at the time.

Last week IVCM announced that it expected an Australian superannuation plan that it runs in conjunction with Tidswell Financial Services to get on to the HM Revenue & Customs official Recognised Overseas Pension Schemes (Rops) list shortly.

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Kirsten Hastings

Senior Reporter

Kirsten is a senior reporter for International Adviser, covering global news stories about the financial services industry. She joined Last Word Media in October 2015 after two years working as a reporter covering the staffing and recruitment industry. Kirsten has a Masters in Financial Journalism from the University of Stirling. 

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