FAQ - Milford Asset

Topic FAQ

Why should I sign up to a KiwiSaver Plan?

KiwiSaver is a long-term savings scheme. It aims to increase your financial independence in retirement. With a maximum member tax credit of $521.43 p.a. from the Government if you are over 18 and make contributions of $1,042.86 or more each year, signing up to KiwiSaver is a great way to save for your future.

Why should I choose Milford over other KiwiSaver providers?

Here are a few things that set us apart:

  1. We take an active approach to investing. We constantly re-evaluate investments to achieve the best results for our clients. Our ability to move quickly means we can take advantage of opportunities and protect investors’ capital.
  2. We have proven expertise on our side. We have one of the largest and most globally experienced investment teams in New Zealand. Having this expertise applied to your savings can give you the edge you need to reach your retirement goals. Our strong performance is independently supported by our numerous awards; including INFINZ Equities Fund Manager five times, Morningstar KiwiSaver Fund Manager of the Year (2013, 2014, 2016) and FundSource KiwiSaver Manager of the Year (2016, 2017).
  3. We do our own research. By personally researching our investments we can identify potential opportunities others may not see. We interact with hundreds of companies each year to assess where your money should and shouldn’t be.
  4. We invest alongside our clients. Our investment experts and wider staff invest in Milford’s Funds. We are just as protective of your investments as we are of our own.

How do I join or switch my KiwiSaver provider to Milford?

Click here to complete our online application for the Milford KiwiSaver Plan. You will need your IRD number and either your driver’s licence or passport details. Please read the Milford KiwiSaver Plan Product Disclosure Statement to learn more.

If you would prefer not to apply online, or your online identity verification is unsuccessful, you will need to provide an application form and verification documents which can be found by clicking here or by downloading the Milford KiwiSaver Plan Product Disclosure Statement.

How can I make additional contributions to my KiwiSaver account?

You are able to make additional deposits to your KiwiSaver account. However these contributions will not, in most cases, be able to be withdrawn until you are 65.

You can make additional contributions to your KiwiSaver account by:

Direct Debit

Please complete our Direct Debit form and send it to or post it to:

Milford KiwiSaver Plan

PO Box 960

Shortland Street

Auckland 1140

 

Electronic Transfer

Milford KiwiSaver Plan
Account No. 02 0500 0966274 000

Please include your name and IRD number or investor number (it will begin with ML) in the reference fields.

Cheque

Make the cheque out to “Milford KiwiSaver Plan” and post it to:

Milford KiwiSaver Plan
PO Box 960

Shortland Street
Auckland 1140

Please write your IRD number or investor number (it will begin with ML) on the back of the cheque for our reference.

Is there a minimum amount that I need to contribute to my KiwiSaver account?

If you are self employed or not employed:

When you join the Milford KiwiSaver Plan and are not transferring from another provider, the minimum initial contribution is $1,000.

If you are transferring your KiwiSaver account to the Milford KiwiSaver Plan from another provider, you do not need to pay an initial investment.

If you are a salary or wage earner:

As you will be contributing at a regular contribution rate, there is no minimum initial investment required.

There is no ongoing annual minimum contribution required by Milford.

How can I change the amount I contribute to my KiwiSaver account?

Your  contribution rate is managed by your employer and is set to the default rate of 3% of your before‐tax pay. You can choose whether you would like to increase your contribution rate to either 4% or 8% of your salary before tax.

If you are a salary or wage earner and receive a pay increase, your KiwiSaver contributions will automatically increase to reflect the increase in your salary or wage.

If you want to change your contribution rate, you will need to notify your employer in writing. You can do this by:

Writing a letter to your employer, indicating your new rate (3%, 4%, or 8%) or filling in a KiwiSaver deduction form (KS2) (available on the IRD website) and giving it to your employer.

How can I login and view my investment account balance online?

Click Account Login at the top right of your page and select the relevant login type.

If you have not already set up your online login, we will need to create one for you. Please email info@milfordasset.com to request this.

For Private Wealth online access registration, please email privatewealth@milfordasset.com.

I’ve forgotten my password what do I do?

Click the Forgot Username or Forgot Password button in the Milford Client Portal page, which will reset your information. If you are still having difficulty logging in to your account please contact us on 0800 662 346 or (09) 921 4700 or info@milfordasset.com

How much will I have saved by retirement age?

This figure can vary dramatically and will depend on a wide variety of factors such as how much you choose to contribute, how early you sign up and whether you make any early withdrawals. It also depends on which KiwiSaver provider you choose. Although there are no guarantees, a provider with a history of delivering strong returns may give you a better chance of a comfortable retirement (although past performance does not guarantee future returns).

You may find our KiwiSaver Calculator helpful to see if you are on track for a comfortable retirement.

Can I make an early withdrawal from my KiwiSaver account?

If you are buying your first home, moving permanently overseas (excluding Australia), or suffering significant financial hardship or serious illness you may be entitled to withdraw some or all of your KiwiSaver savings prior to retirement. To learn more about your potential eligibility for such withdrawals download the KiwiSaver Member Guide or contact us on 0800 662 346 or info@milfordasset.com.

How can I use my KiwiSaver to buy my first home?

KiwiSaver members may be able to withdraw all or part of their KiwiSaver savings early if they are buying a first home; however terms and conditions do apply. 
An application form must be completed along with supporting documentation. Please see the Member Guide for more detail.

How are the funds transferred out of my KiwiSaver account for a first home purchase?

If your withdrawal is approved, your KiwiSaver funds will be transferred into your solicitor’s trust account prior to settlement and will be used as part of the purchase price payable to the vendor on the settlement date. If the agreement is not completed then your solicitor will repay the funds back to Milford to be reinvested back into your KiwiSaver account.

You may also be eligible for the first home owner’s subsidy from Housing New Zealand. To find out more please visit them at http://www.hnzc.co.nz/ways-we-can-help-you-to-own-a-home/kiwisaver-homestart-grant-and-savings-withdrawal/

For more information, or to obtain a First Home Withdrawal Form, please contact Milford at info@milfordasset.com or phone 09 921 4700 or 0800 662 346.

What is a KiwiSaver Member Tax Credit (MTC)?

The government will contribute 50 cents for every dollar of member contributions to your KiwiSaver account up to a maximum of $521.43 per year for KiwiSaver members over 18 years of age.

The KiwiSaver financial year runs from 1 July to 30 June. Contributions must be made within this time period to be considered for the annual Member Tax Credit. In July, the administrator of the Milford KiwiSaver Plan will provide the IRD with investors’ KiwiSaver contribution amounts for investors’ Member Tax Credits. The IRD will normally pay Member Tax Credits to investors’ KiwiSaver accounts directly in July.

What happens to my entitlement to Member Tax Credits (MTCs) if I am nearing retirement age (65)?

When you join KiwiSaver, the Government will meet your KiwiSaver contributions with the Member Tax Credit (up to $521 a year). The eligibility to receive the Member Tax Credit ceases at of age 65 or five years after joining the scheme, whichever is later. For example, if someone joins at age 62, they will be eligible to receive the Member Tax Credit until they are 67.

Upon reaching your age of eligibility the amount of Member Tax Credit you are eligible for in that year will be pro-rated. If for example you reached the age of eligibility half way through the KiwiSaver year, you would only be eligible to receive half of the Member Tax Credit.

When do I become eligible to withdraw my KiwiSaver?

You become eligible to withdraw your retirement savings when you qualify for NZ Superannuation (currently age 65), as long as you have also been a member of one or more KiwiSaver schemes for a minimum of 5 years.

Once your have reached eligibility you have the option of withdrawing all or part of your savings at anytime. To obtain a copy of the Eligibility Withdrawal form please contact our Investor Services team on 0800 662 346 or info@milfordasset.com.

Can I move my Foreign Super or Pension into the Milford KiwiSaver Plan?

Australian Superannuation:

You are able to transfer your Australian superannuation into the Milford KiwiSaver Plan. To start the process you need to contact your Australian Superannuation Provider and confirm what information they require to make the transfer. After you have spoken to your Provider please contact Milford and we will assist where we can. For more information, please click here.

 Please note that we are currently unable to accept transfers from any other foreign countries.

How secure are my funds?

All Milford investors have their Fund assets held by an independent custodian controlled by an independent licensed Supervisor to ensure security.

Trustees Executors Limited is the appointed Supervisor for the Milford PIE Unit Trusts and KiwiSaver Plan.

All the assets of the Milford Unit Trusts and KiwiSaver Plan Funds are held by the Supervisor’s nominated custodian, NAB Custodians Limited. (a wholly owned subsidiary of National Australia Bank Limited ABN 12 004 044937).

Trustees Executors Limited has been granted a full licence by the Financial Markets Authority under the Securities Trustees and Financial Markets Supervisors Act 2011 to act as Supervisor. Trustees Executors Limited is also governed by the Trustee Act 1956. Further information on the Supervisor’s licence is publicly available on the Financial Markets Authority website www.fma.govt.nz

Both the Supervisor and the Custodian are independent of Milford.

Both Trustees Executors Limited and Milford are audited by PricewaterhouseCoopers.

Why should I invest with Milford?

There are many reasons why you might choose to invest with us.

Here are a few things that set us apart:

  1. We take an active approach to investing. We constantly re-evaluate investments to achieve the best results for our clients. Our ability to move quickly means we can take advantage of opportunities and protect investors’ capital.
  2. We have proven expertise on our side. We have one of the largest and most globally experienced investment teams in New Zealand. Having this expertise applied to your savings can give you the edge you need to reach your retirement goals. Our strong performance is independently supported by our numerous awards; including INFINZ Equities Fund Manager five times, Morningstar KiwiSaver Fund Manager of the Year (2013, 2014, 2016) and FundSource KiwiSaver Manager of the Year (2016, 2017).
  3. We do our own research. By personally researching our investments we can identify potential opportunities others may not see. We interact with hundreds of companies each year to assess where your money should and shouldn’t be.
  4. We invest alongside our clients. Our investment experts and wider staff invest in Milford’s Funds. We are just as protective of your investments as we are of our own.

How do I open an investment funds account with Milford?

You can apply to invest in our Investment Funds in one of the following ways.

  1. Download and print the Product Disclosure Statement (includes an Application Form)
  2. Request a Product Disclosure Statement to be posted to you

Once the Form is completed, print it out, sign and date it, and mail it to us along with the required identity documentation.

Mail To:
Milford Funds Limited
PO Box 960
Shortland Street
Auckland 1140

Please make the cheque payable to ‘TEA Custodians Ltd o/a Milford Funds Ltd’ or direct credit to 02 0500 0907231 000 (please reference your name and IRD number with a direct credit deposit).

How can I make additional investments into my account (for PIE Investment Funds only)?

You can invest additional money to your PIE Investment Fund account by:

Electronic Transfer

Milford Funds Ltd
Account No. 02 0500 0907231 000

Please include your name, IRD number or your investor number (it will begin with ML) as well as the Fund allocation in the reference fields.

Cheque

Make the cheque out to “Milford Funds Ltd” and post it to:

Milford Funds Ltd
PO Box 960

Shortland Street
Auckland 1140

Please write your name, IRD number or your investor number (it will begin with ML) on the back of the cheque as a reference.

Direct Debit

Please complete our Direct Debit form and send it to or post it to:

Milford Funds Ltd

PO Box 960

Shortland Street

Auckland 1140

How can I change the Fund that I am invested in?

For KiwiSaver investors:

You can change your investment strategy at any time, you can also choose a mix of all funds. To do so, please complete our Inter-Fund Switch form.

For PIE Investment Fund investors:

You can change your investment strategy at any time. To do so, please complete the ‘Transfer Request’ form. If you are looking to transfer holdings into a fund that you do not currently hold units in you will also need to complete an application form.

How can I make a withdrawal (PIE Investment Funds only)?

To make a withdrawal from your Unit Trust account please complete the applicable withdrawal form. Please note that you may need to provide identity documents if not previously supplied or if your documents are out of date. Please refer to the checklist on the withdrawal form or call our team on 0800 662 345.

 

What is a PIE Fund?

PIE stands for Portfolio Investment Entity. All of Milford’s Investment Funds and KiwiSaver Funds are PIE registered entities. This provides potential tax benefits for you, enabling your investment to be taxed at your own Prescribed Investor Rate (PIR).

What are the benefits of PIE Funds?

  • No capital gains tax on New Zealand and most Australian listed shares.
  • PIE Funds have a lower tax rate on income (28% for the highest income earners versus 33% for direct holdings).
  • PIE Funds reduce your tax administration as your tax liability is accounted for within the Fund.
  • PIE Funds have access to a broad range of investment tools that can reduce risk and enhance returns such as currency hedging and derivatives.
  • PIE Funds are actively managed and can take advantage of market volatility whereas direct holdings for tax reasons may opt for a buy and hold strategy.

What is a Unit Trust?

Unit Trusts are investment vehicles that enable you to pool your money with other investors so that you can invest across a wider range of assets.

Investors buy and sell units which represent a unit share in the Unit Trust Fund. The value of the units fluctuates according to the changing value of the underlying assets in which the Unit Trust Fund has invested.

Unit Trust Funds have an independent Supervisor who holds the ownership of the assets within the Fund. Trustees Executors Limited is the independent supervisor for Milford Unit Trust PIE Funds and also oversees the Manager’s administration.

What is the fee structure of the Funds?

To view the fee structure of the Funds please see our fees page.

How will investments in Milford Funds affect my tax position?

Please note that individual investors should not need to do anything to account for their PIE tax. PIE tax will be paid at source on their behalf.

All of our Funds are registered as Portfolio Investment Entities (‘PIEs’). Under PIE legislation, investors benefit from:

  • No tax on gains in New Zealand shares and certain Australian shares
  • Investors are taxed at their PIR with a maximum applicable PIR of 28%.

PIEs that invest in New Zealand companies and Australian resident companies that are listed on the ASX All Ordinaries Index (generally the largest 500 companies) are not taxed on any gains in the value of their shares, however any dividends received in respect of the shares are taxed.

Investments in companies outside New Zealand (unless they are listed on the Australian ASX All Ordinaries Index) are taxed under the modified Foreign Investment Fund regime (FIF regime) and are taxed as if they have earned 5% total income. The income is calculated by multiplying the daily market value of the total portfolio of assets subject to the FIF regime by 5% and dividing by 365 days. Dividends from companies subject to the FIF regime are not taxed.

Under the PIE regime, instead of all Fund income and expenses passed through to investors being taxed at the Fund’s tax rate of 33%, they are taxed at the investors PIR, to a maximum of 28%. Investors on a marginal tax rate of 33% benefit from a 5% reduction.

The PIE regime provides tax advantages for unit trust investors over those who invest directly in shares. The reason is twofold:

  • PIEs have statutory protections against taxation on gains. Generally speaking direct investors are not taxed on capital gains either if they can show that they are not investing to make capital gains. However, there are complex and uncertain rules about whether an investor is deemed to be holding shares for gain or for some other income.
  • Direct investors who receive dividends are taxed at their marginal tax rates with no maximum. For investors on a 33% tax rate, that means they will be taxed at the full 33% tax rate on dividends received, whereas in a PIE they will only be taxed at 28%.

How do distributions work?

Some of our funds pay distributions at set intervals.  Distributions are  a way for some of the fund’s returns to be paid out to investors, in the form of cash payments.  The portfolio managers have set the distribution amounts at levels they feel are sustainable, given the current and expected future environment.  The amount paid to each investor is based on the number of cents per unit held.

If you are investing into a fund that pays regular distributions but opt not to receive the cash, it will instead be reinvested and used to purchase additional units in that fund.

Distributions from the funds are non-taxable events and are not treated as income for tax purposes.

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