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Which type of fund is right for me?

Group Investment Fund or PIE Fund?

PIE stands for Portfolio Investment Entity. Investing into a PIE may provide real benefit for some investors due to there being less tax to pay when compared to an investment that’s subject to normal income tax.
Complete our online questionnaire to see whether a PIE fund might be better for you.
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Benefits of a PIE fund

The main benefits of investing in a PIE fund are:

  • PIE tax rates: You may be able to pay less tax (compared with an investment subject to normal income tax), for the following reasons:
    • An individual’s share of income from a PIE is taxed at a maximum of 28% (the rate is based on the investor’s taxable income plus PIE income, and is based on the lower of the previous two years’ income).
    • Investing in a PIE can extend the amount of income that a 10.5% or 17.5% tax rate is applied to, depending on the other income sources of an investor.
    • Where the correct PIR tax rate is used, tax paid by the Fund is a final tax.  This means that there is no requirement for individuals to include PIE income in their own tax return.
  • No tax returns: PIE  funds pay tax on behalf of each individual New Zealand resident investor, at the investor’s nominated PIR tax rate. Investors do not, therefore, generally have to file separate tax returns if all of their sources of income are subject to taxation at source and they have elected the correct rate.
  • Flow through vehicle for some investors: Where an investor is “zero rated” a PIE is a flow through tax structure. This has advantages for non-taxable investors.
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Understanding the benefits a PIE fund may bring

Investing into a Portfolio Investment Entity (PIE) may provide real benefit for some investors due to there being less tax to pay when compared to an investment that’s subject to normal income tax.

Benefits of investing in a PIE fund

Start investing with First Mortgage Trust

1. If you want to talk to us

Phone 0800 321 113 or email [email protected] to talk to our investment team. We can either set up a meeting in our office, or an online meeting.

2. Download our Investor Pack

Download our Product Disclosure Statements and complete an Application form, send it to us and we will be in contact. Click here to Download our Investor Pack.

3. Request a call-back

Request a call-back and our team will give you a call back to talk about how we can help you.

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A member of our Investment Team can give you a call to discuss any questions you might have about investing with First Mortgage Trust.

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Disclaimer: First Mortgage Trust is not a financial or tax adviser, the benefits of investing in a PIE will depend on each investor’s personal circumstances. This information is of a general nature and we strongly recommend that you talk to your financial or tax adviser to determine what type of fund is right for you. Tax laws are subject to change.

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              Which type of fund is right for me?

              Complete this questionnaire to see what type of fund might be the most tax effective for your circumstances. Please note, this is just a guide and we recommend you seek professional tax advice.

              Are you investing as an individual or trust?
              An individual A trust
              Other investor types should seek professional tax advice.
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              Individual

              Is your tax return completed by a tax adviser or accountant?

              Yes No

              Can you reasonably estimate your own annual income?

              Yes No

              What is your total income from all sources (including PIE income)?

              < 48k 48-70k 70-119k > 119k

              YOUR RESULTS

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              Trust

              Do you distribute all annual income to beneficiaries?

              Yes Some income is distributed No distribution

              Do all Trusts beneficiaries earn more than $48K from all sources (including PIE income)?

              Yes No
              YOUR RESULTS

              Contact Us

              Disclaimer – This tool is intended to provide general guidance only. This tool does not take into account your particular financial situation, objectives or goals.

              There are alternative strategies which may provide better outcomes, we recommend you seek independent advice before making any investment decision. If you have completed this guide and wish to discuss this, we recommend you seek professional tax advice.