ANZ New Zealand

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Investments and Advice

Frequently Asked Questions

What are ANZ's PIE products?

ANZ has two PIE products - the ANZ Call Fund and ANZ Term Fund.

How is my money invested?

The money you invest in the ANZ Call Fund or ANZ Term Fund is pooled with other investors' money. The funds then invest in deposits with ANZ National Bank. You are then allocated units in the fund of your choice equivalent to the value of the money you invest. Generally $1 invested = 1 unit.

What risk profile does an ANZ PIE fund have?

The ANZ PIE funds only invest in either call deposits or term deposits with ANZ National Bank. This means that they have an investment approach that is uncomplicated and this is likely to see them having a lower risk profile than many managed funds investing in companies listed on the share market or in property investments.

What is a Prescribed Investor Rate (PIR)?

A PIR is the rate your PIE income will be taxed at. Each year we will ask you what your PIR will be for the coming year. If you don't supply your PIR, the income you earn from investment in the ANZ PIE funds will be taxed at 30%.

How much will I be effectively taxed on an ANZ PIE fund?

NZ resident individuals with: PIR
Taxable income* in either of the last two tax years of:
  • Less than $38,000
  • Less than $38,000 and total income less than $60,0001
  • $38,000 plus
19.5%
19.5%
30.0%
Companies, charities, non-profit organisations and trusts2 0.0%
Non-residents, trusts and default 30.0%
* Example: income from salary, wages, and any additional sources of income that would be included in an income tax return.
1 Taxable income must be less than $38,000 and total income including PIE income must be less than $60,000.
2 Trusts may elect a PIR of either 30% or 0%.
Note: For partnerships and joint investments the highest PIR must be used

How does a PIE work - Investor Scenarios^

High Income Earner

An ANZ Call Fund example:
  • Mary and her husband both earn over $70,000 p.a. (therefore on the 39% income tax rate) and have recently inherited $50,000
  • They'd like to have easy access to their money with tax efficient, competitive returns

If we compare an ANZ Call Fund PIE with a standard call account, these are the returns:

ANZ Call Fund Online Call Account
Investment amount $50,000 $50,000
Example rate of return per annum 7.5% 7.5%
Tax paid on returns 30% 39%
Total after-tax income per annum $2,677** $2,336
** Presumes reinvestment of income

Increased income to $38,000 or more in last two years

Joy has returned to the workforce after a three year absence and has just started a job on a salary of $90,000. Her salary puts her on the top income tax rate of 39% so any additional income she earns will be taxed at that rate.

Joy has $300,000 to invest from the sale of her house as she wants to rent for a year.

Comparing the ANZ Term Fund with a Term Deposit produces the following results:

ANZ Term Fund Term Deposit
Investment amount $300,000 $300,000
Example rate of return per annum 7.5% 7.5%
Minimum tax rate paid on returns 19.5% 39%
Total after-tax income per annum $18,527# $13,725

# Income paid on maturity

Joy has earned less than $38,000 in either of the last two tax years so under the PIE tax rules her PIE income will be taxed at 19.5%.

^ These examples are for illustrative purposes only. Rates of return specified are not necessarily the current rates of return applicable. The most up to date rates and fees can be found here.

To read more, visit the IRD website

If in doubt you should seek your own independent tax advice on your applicable PIR.

The ANZ Term Fund and ANZ Call Fund are units in unit trusts issued and managed by UDC Finance Limited ("UDC"). Trustees Executors Limited is the trustee. ANZ National Bank Limited is a promoter of the Funds. UDC is a wholly owned subsidiary of ANZ National Bank Limited. The terms and conditions of the Funds set out in the Investment Statement apply. A copy of the Investment Statement (PDF, 680kb) and Prospectus for the Funds (PDF, 108kb), and a copy of the Disclosure Statements prepared under the Securities Markets Act 1988, are available on request from any branch of ANZ, free of charge.

Units in the Funds do not represent deposits or other liabilities of ANZ National Bank Limited, are subject to investment risk, including possible delays in repayment and loss of income and principal invested. No person guarantees (either partially or fully) UDC or the capital value or performance of the Funds.

ANZ, part of ANZ National Bank Limited.

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