| Log In Subscribe for $0.99/week
0
0 Comment
Save Story
News

FDR intl bond funds a better option: Tower

Friday 9th of January 2009

The funds involved are the wholesale TOWER International Bond Fund (Fair Dividend Rate) and the retail TOWER BondPlus Fund.

Both funds are PIEs and their international investments are hedged to the New Zealand dollar.

“The change to our international bond funds offers investors access to the FDR regime, which brings some benefits relative to New Zealand fixed interest and non-FDR international bond funds,” said the CEO of TOWER Investments, Sam Stubbs.

“Coupled with the fact that high quality international bonds offer some very persuasive investment opportunities within the context of the global credit crunch recession, we are confident that FDR rules now applicable to our international bond funds make these PIEs core investment portfolio allocations for New Zealand investors,” Stubbs says.

Under FDR rules, TOWER’s FDR international bond funds’ taxable income allocated to investors will be based on a deemed PIE return of 5% per annum of the daily opening market value of the funds’ international investments.

Income received by TOWER’s FDR international bond funds above the deemed return of 5% per annum should not be subject to further taxation for investors.

Investors will pay tax on allocated income at their Prescribed Investor Rate (PIR).

The underlying manager of the wholesale TOWER International Bond Fund (Fair Dividend Rate) and the retail TOWER BondPlus Fund is the giant US bond manager Pacific Investment Company (PIMCO).

Comments (0)
Comments to GoodReturns.co.nz go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved.
Next Article
Value of index tracking seen in the numbers, says Kernel
Value of index tracking seen in the numbers, says Kernel
3 min read
No plain sailing around Castle Point
No plain sailing around Castle Point
3 min read
Latest News
The run of play is towards more and more underwriting, and not just at the traditional new business stage
The run of play is towards more and more underwriting, and not just at the traditional new business stage
3 min read
Value of index tracking seen in the numbers, says Kernel
Value of index tracking seen in the numbers, says Kernel
3 min read
NZ sharemarket starts week up 0.6%
NZ sharemarket starts week up 0.6%
4 min read
Can Games Teach Financial Literacy?
Can Games Teach Financial Literacy?
4 min read
News
More Read
Value of index tracking seen in the numbers, says Kernel
Value of index tracking seen in the numbers, says Kernel
3 min read
No plain sailing around Castle Point
No plain sailing around Castle Point
3 min read
Failure to plan for data-hungry AI will have consequences
Failure to plan for data-hungry AI will have consequences
3 min read
NZ Super Fund terminates Devon mandate
NZ Super Fund terminates Devon mandate
1 min read
Latest Comments
New customers locked out of ASB’s pre-approvals
As much as I disapprove of the ASB stance, I totally understand it, ESPECIALLY as the ComCom expect us to put an application to 4-5 banks, and not just the one we believe to suit the client the best. By demanding this, we would be tying the banks up with 4-5 times the applications necessary to secure a settlement. Banks would know that only 20-25% of applications are going to make it through to settlement. This shotgun approach is why banks are overloaded.
1 month ago Andy Phillipson
New customers locked out of ASB’s pre-approvals
This is pure BS from the major banks. In front of ComCom earlier in the year they denied any policy of channel inequality yet there clearly is from some (at board level) both in turnaround times and cashbacks for example. They need to staff up, sort their antiquated IT and give Advisers the respect they deserve. New Zealand borrowers are voting with their feet and using Advisers more and more. Are some banks starting their pushback? One as done it before so no surprise there.
2 months ago Jeff Royle
New customers locked out of ASB’s pre-approvals
As a financial adviser, business owner and ex-banker/home lender in NZ & Australia with almost 20 years experience I can tell you that this is very concerning for several reasons - first one being that as bank staff you still get paid regardless of whether you put the approval thru, lazy/incompetent/time poor bankers are often declining loans rather than taking the time to push a difficult deal thru as they get paid either way, as a financial adviser who doesn't get paid unless the deal settles we are more committed to securing an approval which is why more volume now comes thru the broker channels. This feels like it's the banks way of reducing costs by not having to pay brokerage to advisers when bank lenders doing nothing should be sitting on the broker overflow lines. This directly affects small businesses and is another example of banks playing God & redirecting profit margins back to their own coffers - there is no valid excuse for branch lenders doing nothing to not be sitting on these overflow lines. It makes a mockery of giving the choice back to the clients who are already typically having poor banking experiences when dealing direct with bank staff.l and in no way supports small businesses already doing it tough.
2 months ago Natasha Viliamu
New customers locked out of ASB’s pre-approvals
Another major bank today has announced no pre approvals via Advisers for under 80% LVR. That's at least 3 of them. All applications whether direct or through Advisers should be given the same priority and go through the same assessment process. Banks don't appear to have invested (enough) in staff or technology and given how much money they make, it is unacceptable. Lets hope it gets sorted soon!
2 months ago Craig Pope
New customers locked out of ASB’s pre-approvals
Sorry I don’t believe ASB are overrun with applications as we are traditional in a slow market so I think this” high volume “ excuse is rubbish, ASB will still post a massive profit due margins being so high but they can’t hire extra staff?? This is a disgrace! for consumers that choose to go through an independent mortgage adviser ASB are turning them away, but an ASB branch can write that deal no problem? , what happened to offering choice to the consumer? And being competitive? Are Comcom silent on this? Are the dealer groups /master FAP’s who have a monopoly over mortgage advisers’ access to bank mortgage lending silent on this? Why do we pay dealer groups /Master FAPs thousands in fees and costs if they can’t or don’t want to even back the people that pay their wages. All mortgage advisers want is an even playing field no more no less. How would ASB feel if all mortgage advisers in NZ stopped sending business to them for a few months?
2 months ago Valkyrie Vulcan