Bank of China New Zealand Wholesale Fund # 1 is celebrating a 12-month return of 6.3%p.a. for the period ending 30
September 2018. The tax-effective nature of the PIE investment means no further New Zealand tax is payable by investors
in the fund.
“This is a big difference to other QDII offerings that are available in the market,” said Mark Ford, Bank of China New
Zealand Limited’s Director of Asset Management.
“Successful investors look at the performance of a fund after all fees and taxes,” said Mr Ford, who believes investors
are sometimes too quick to focus on fees when investing in products that do not deliver the best outcomes.
“Some of the simple investment structures out there, like those structured as term deposits with simple fixed interest
returns, may not be as cheap as they look once you factor in the after-tax return,” said Mr Ford.
To mark the two-year anniversary of the Bank of China Wholesale Fund #1, Bank of China New Zealand Limited have
introduced a variation of the fund that allows investors to invest 25% in New Zealand equities and 75% in New Zealand
bonds to better align with Immigration New Zealand’s incentives for immigrant investors willing to make a higher
allocation to growth assets in their New Zealand investment. Bank of China New Zealand Limited has already received a
first tranche of investment into this new offering and will re-open the fund for further investment later in the year.
Bank of China New Zealand Limited’s Associate Director Pengbo Jiang said: “We are the first QDII provider able to offer
such a flexible fund scheme that aligns with Immigration New Zealand’s growth investment policy while also meeting the
prudential requirements of the underlying Chinese investors and the Chinese regulatory regime. We are very much looking
forward to continuing our successful collaboration with Immigration New Zealand and offering the best integrated fund
scheme to our clients that aligns with Immigration policy.”
Jonathan Maitland, Immigration Manager, Business Migration, Visa Services, Immigration New Zealand, said: “Immigration
New Zealand welcomes the expansion of investment options available to Investor Plus and Investor Two applicants through
the Bank of China QDII initiative and hopes investors will look favourably at making a greater allocation to New Zealand
growth assets as part of their immigration intentions.”