The NZ Funds & Advisory Industry

The New Zealand funds and advisory industry has experienced significant change over last 5 years, with the following foundations being established for long term growth:

  • Introduction of greater adviser and industry regulation (Financial Advisers Act, Financial Service Providers Register and the soon to be introduced Financial Markets Conduct Act)
  • Introduction of KiwiSaver, a workplace retirement savings scheme, net flows of NZD2.6b for year to 30 June 2011
  • Introduction of a new, more efficient taxation structure for managed funds (Portfolio Investment Entities or PIEs) and overseas investments (Foreign Investment Funds regime)
  • Strengthening of NZ’s position as a financial hub though 0% rating of tax for foreign investors in PIEs holding overseas assets
  • Approximately NZD67 billion in managed funds
  • Intermediary market dominated by a number of large players (Banks and Insurance Companies), a number of mid-sized dealer groups and a small number of independents
  • Institutional asset consultants include Russell, Mercers and Aon/Hewitt and to a lesser degree, Jana and Cambridge plus a small number of boutique consultants.
  • The recently introduced Trans-Tasman Mutual Recognition scheme provides Austrailian Managers the ability to raise money in New Zealand and Australia using one disclosure document prepared under regulation in its home country