Bank of China QDII Fund achieves a 6.3% pa 12-month return , celebrates two year anniversary with variation

Saturday 27th October 2018

Bank of China New Zealand Limited is pleased to acknowledge the two year anniversary of the Bank of China New Zealand Wholesale Fund # 1 - the bank’s QDII fund identified by Immigration New Zealand as suitable for notified foreign investors under the Migrant Investor Category and Parent Retirement Category.

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.”

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