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Optimise your investment with the HSBC Cash and Term Funds
The HSBC Cash and Term Funds are PIE funds which may enable you to secure a higher after tax rate of return than you would if you had the same investment in an HSBC call or term investment.
For more information on either of these Funds contact us today or view the Fund fact sheets or investment statement below:
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Call us: Contact your relationship manager or call our Premier Centre on 0800 028 088, 24 hours a day, seven days a week |
Note
The HSBC Cash and Term Funds are only available to HSBC Premier customers residing in New Zealand at the time the investment is taken out. Eligibility criteria applies to HSBC Premier.
What is a Portfolio Investment Entity (PIE)?
The benefit of a PIE is the tax treatment of the income created by the Fund. In a PIE, income is not taxed at the fund level but allocated to investors and taxed at the investor's Prescribed Investor Rate (PIR) with a cap of 28%. This is of benefit to those investors on a marginal tax rate of 30% and 33%.
The table below summarises the different levels of tax that applies for individuals in PIEs as of 1 Ooctober 2010. For more information about PIEs and PIRs, including a guide to help you work out your PIR, please contact Inland Revenue or visit www.ird.govt.nz
Back to top Individual tax rates under the PIE regime
| Total Taxable Income (excluding income from PIEs) | Taxable + PIE income (after deducting PIE Losses) |
PIR |
| $0 - $14,000 | $0 - $48,000 | 10.5% |
| $0 - $14,000 | $48,001 - $70,000 | 17.5% |
| $14,001 - $48,000 | $0 - $70,000 | 17.5% |
| $48,001 and over | Any | 28% |
| Any | $70,001 and over | 28% |
Please note that the HSBC Cash and HSBC Term Funds can allocate income equally for joint investors if they share their legal interest 50/50. For more information about joint investment and PIE tax, please read the Funds' Investment Statement.
Important information
This is intended as a summary only of the key features of the HSBC Cash Fund and the HSBC Term Fund and all investors should read the Investment Statement carefully before investing. The information above is current as at the date of publishing and may change without notice. Neither HSBC nor the Manager is providing a financial advisory service and prospective investors should obtain independent tax and investment advice.
Investment Adviser Disclosure Statements are available on request. Terms and Conditions may apply to the products mentioned. Fees and Charges may also apply. Units in the HSBC Cash Fund and HSBC Term Fund are distributed by HSBC and are issued by HSBC Investments New Zealand Limited. The terms and conditions set out in the HSBC Cash Fund and HSBC Term Fund Investment Statement and Prospectus apply. Units in the HSBC Cash Fund and HSBC Term Fund are subject to investment risk, including possible delays in repayment and loss of principal invested. No person guarantees HSBC Investments New Zealand Limited or the units in the fund or performance of the HSBC Cash Fund and HSBC Term Fund. Issued by The Hongkong and Shanghai Banking Corporation Limited, incorporated in the Hong Kong SAR with limited liability, acting through its New Zealand branch.
Registration of HSBC Cash Fund and HSBC Term Fund Prospectus
On or about 9 September 2011 HSBC Investments New Zealand Limited registered a prospectus for the offer of units in the HSBC Cash Fund and HSBC Term Fund dated 9 September 2011. You can download a copy of the prospectus from the Companies Office website at www.business.govt.nz/companies by searching under the documents on HSBC Investments New Zealand Limited’s file.
The information provided is intended as a general guide for reference. Benefits and features may be subject to local country regulatory restrictions. Investment Adviser Disclosure Statements for HSBC Investment Advisers are available on request and free of charge. Please refer to the Service Guide
