New Zealand is one of our favorite jurisdictions. This territory, composed of two large main islands, has an unparalleled cultural diversity and captivating cultural richness and enjoys a stable government and one of the world's freest economies.

If you have a family office or if you are looking for a destination for a pool of investors who want to invest their money in a jurisdiction that is not under the magnifying glass of the OECD and the procedures, requirements, and fees are not a problem, the Managed Funds of New Zealand are one of your best options.

The Managed Funds of New Zealand offer you:

• Flexibility to invest in different types of assets
• No restrictions on which industries you can invest in
• Opportunity to gain a foothold in a market that is not as exploited as in other jurisdictions
• Cost-effectiveness
• A fairly straightforward regulatory framework that responds to the current needs of investors
• A simple registration process
• New Zealand is at the top of the World Bank's Doing Business ranking, so the capitalization opportunity for new funds is greater than in other jurisdictions

Why invest in New Zealand

New Zealand has been ranked for years in a row as one of the top places to measure economic freedom, ease of doing business, and quality of life in the different countries of the world. This remote country has a super developed economy that has more opportunities than most of its competitors despite being relatively small compared to other economies in the world.

This jurisdiction has opened up to foreign investment offering a stable political environment and a growing economy. New Zealand also has a favorable tax scheme for doing business and one of the world's best reputations when it comes to asset protection.

If after reading this you are wondering how to invest your money in New Zealand, one of your best options is a New Zealand fund. Our team of experts in New Zealand can help you establish a fund, take care of the paperwork, register the application with the Financial Service Providers Register (FSPR) and the Financial Markets Authority (FMA), and open a proper bank account so that your fund can start trading smoothly in Maori land.

Opening a fund in New Zealand is ideal for investors who want to enter a market that is not as saturated as the North American or European markets and who want to benefit from the advantages of trading in one of the freest economies in the world.

The fund industry in New Zealand is relatively new compared to other jurisdictions, but that has allowed it to take firm steps towards consolidation. By the end of 2017, the total of managed assets in New Zealand funds exceeded $110.7 billion and since then has not stopped growing by 4.1% annually.

But in addition to being in a market with little competition and fairly certain growth projections, funds in New Zealand are relatively simple to establish because most procedures, paperwork, and requirements have been simplified.

Having a New Zealand fund is the best way to get a good investment vehicle that allows you to increase your money and access Asian markets with many conveniences.

Our team of experts can guide you through every step of the process of establishing a fund and advise you on how to make the best decisions to protect your investment in New Zealand. If you want to know how to start the process, do not hesitate to contact us! 

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Why New Zealand? Five reasons to establish your background in Maori land

A simple tax system that avoids complications

To attract considerable amounts of foreign investment New Zealand decided to become a place where doing business is very simple, and that includes a tax scheme that does not cause headaches to anyone. The domestic taxes in New Zealand are all gathered in one direct rate that applies to individuals and companies in different proportions. If you decide to operate in this jurisdiction, you can save yourself bad times working on confusing tax returns that even professionals can not explain well.

Registering a business could not be easier

Registering a business entity in New Zealand has few requirements and usually takes a day or two. This jurisdiction is not in the top places for economic freedom and ease of doing business for nothing. This facility is also present in the registration of Managed Investing Schemes or MIS (the formal name in New Zealand for structures such as investment funds).

The law regulating the activity of the funds is updated

As we said, the world of funds is relatively new in New Zealand, so regulation in this area has had time to study industry best practices and combine them with the bureaucratic simplicity to which we New Zealanders are accustomed. Besides that, New Zealand is an OECD country, so the regulatory frameworks are adequate to the highest quality standards.

Versatility

New Zealand's Managed Funds give you the ability to invest in almost any type of asset and industry, and you also can specialize your fund in a specific industry. For example, many foreign investors in New Zealand choose to specialize in the pharmaceutical industry.

The fund market in New Zealand is expanding

Generally, when we talk about funds, the most common thing is to think of Europe, the United States, Hong Kong, or Singapore, which are the central markets for this type of service. But in the last five years, New Zealand has been gaining a place in that conversation. This jurisdiction is gaining popularity among foreign investors at a dizzying rate because the New Zealand market is not saturated and offers more attractive investment opportunities than other countries.

What are New Zealand Managed Funds?

In a nutshell, a Managed Fund is an investment vehicle that allows you to pool several individual investors' money and use it to invest in several assets simultaneously. The particularity of this type of fund in New Zealand is that the FMA requires requirements to minimize as much as possible the risks inherent in this type of investment instruments.

Generally, when you open a Managed Fund, you can manage two main types of assets: growth assets and income assets.

Growth Assets include public company shares, publicly listed property companies, and private equity. Income assets are less volatile and generally include bonds, real estate projects, money market accounts, and dividend-paying stocks.

This type of fund enjoys a solid regulatory framework and, at the same time, convenient flexibility, which makes Managed Funds one of the best complements for a Family Office or a safe and profitable investment route for any foreign investor.

Process for registering a Managed Fund in New Zealand

Remember when you had to go to some office and stand in an endless line and then bounce around different offices and bureaucrats to register a company? Well, suppose you decide to register a Managed Fund in New Zealand. In that case, you can forget about all that since the registration process can be done almost entirely online, and you have up to 120 days to complete your application once you have started.

Before you start with the application to register your fund, it is best to make sure you have all the necessary documents. Although registering funds in New Zealand is relatively simple, it is always better to have the help of a professional to avoid headaches in the middle of the process. Our team of New Zealand experts can help you gather the necessary documents to make your registration process as simple as possible.

The main requirements that New Zealand authorities require to register a fund are:

Details of the participants.

Participants of New Zealand Managed Funds can be companies registered in New Zealand, other New Zealand entities such as credit unions, overseas issuers, limited partnerships, individuals, associations, boards of trustees, other participants, and financial service providers.

The information required about participants is as follows:

Manager

• Manager's name and registration number on a Companies Office register or the Other Participants directory.
• Manager's financial service provider (FSP) number. The manager must hold the FSP registration for 'Manager of the registered scheme.'
• Manager's email address.

Supervisor

• Supervisor's name and number.
• Supervisor's FSP number. Supervisors must hold the FSP registration for 'Supervisor of the registered scheme.'
• Supervisor's email address.

A Managed Fund can only have one supervisor.

Custodian

If a custodian exists, then you'll have to include that too.

• Custodian's name and number.
• Custodian's FSP number. Custodians must hold the FSP registration for 'Custodian of the registered scheme.'

A Managed Fund can have more than one custodian.

Independent trustee

An independent trustee is mandatory if the scheme is restricted. 

• Independent trustee's name and number.
• Independent trustee's FSP number. Independent trustees must hold the FSP registration for 'Independent trustee of the restricted scheme.'

Offeror Details

A Managed Fund can have more than one offeror. If the offeror is not the scheme manager, you'll need to provide the following information.

• Offeror's name and number
• Offeror's FSP number, if required - ensuring the offeror is registered for "Participating in an FMC offer as an issuer or offeror of financial products
• Offeror's email address. 

Managed Fund Documents.

The general fund information you need to include in the application includes:

• Fund Name.
• Fund Number.
• Fund Classification.
• Risk Indicator.
• Fund description.
• The total value of the fund.
• The number of investors in the fund.
• Start date of operations.
• Asset liquidity and debt ratios.
• Information on key personnel.

The process of accepting your application to register your fund may be ready the same day you finish your application as long as you complete it before 3 pm (New Zealand Time); otherwise you may have to wait another day or two for your fund to be properly registered.

When the authorities have reviewed all the information and approved your application, you will receive an email with your Product Disclosure Statement. After that, you will be ready to operate your fund in New Zealand. It's as simple as that.

Please keep in mind that the authorities may require more information to process your application if they feel it is necessary.

If you're wondering about the fees for this whole process, you'll like to know that there are only three figures to keep in mind during the application process:

Who are we, and what can we do for you?

At Mundo, we work hard to offer the best financial services and investment opportunities to family offices, high net worth individuals, and investors worldwide. Our work is always aimed at maximizing our clients' freedoms.

Freedom is the fundamental value of our work. That's why we do our best to offer you the best tools to invest your assets in jurisdictions that will help you maximize your freedom and that of your loved ones.

In the last few years, the number of people who decide to invest their money in safe and free jurisdictions has grown, which has caused many of the popular options to be saturated today. However, today's New Zealand is positioned as a new and relatively unexplored destination for investors of any category.

That's why we work tirelessly to build a network of New Zealand experts who can help you design the best possible investment strategy using the opportunities of the New Zealand Managed Funds market.

New Zealand is rapidly gaining foreign investors' attention, but there is still time to take your place at the forefront of one of the world's freest economies, and we can help you do it.

If you want to start the process of registering a Managed Fund in New Zealand, contact us! Our team of experts will have you ready to operate your fund on Maori soil in no time. 

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