PIE investments give investors even more choice
MARAC PIE investments give investors even more choice
The MARAC PIE Fund gives investors the opportunity to cap tax on their investments at 30%.
10 December 2008
MARAC today launched the MARAC Term Deposit PIE . This is a PIE investment with a difference – it provides investors with a fixed term, fixed rate investment that offers the option to have income either direct credited or compounded quarterly.
The company has also launched a second PIE product, the MARAC Call PIE , which offers investors the tax advantages  of a PIE, with the flexibility of on-call access to their funds.
MARAC PIE Fund investments give investors who are currently paying 33% or 39% resident withholding tax (RWT) the opportunity to increase their net investment returns by taking advantage of the capped 30% PIE tax rate .
The MARAC Term Deposit PIE works in a similar way to any 12 month term deposit. MARAC is currently offering 6.75% p.a. for 12 months with income either direct credited or compounded quarterly. For an investor paying RWT at 39%, investing in the MARAC Term Deposit PIE means paying 23% less tax, which is equivalent to earning 7.75% p.a. in a non-PIE term deposit.
“Our decision to launch the MARAC Term Deposit PIE with the option to have income either direct credited or compounded quarterly is part of our aim to provide a choice of investment options and tailored solutions. _PIEs are becoming an increasingly popular investment vehicle for astute investors and we expect the MARAC PIE investments to be popular. After all, who wouldn’t want to pay up to 23% less tax?” says Andrew Ford, MARAC’s Retail Investment Manager.
“For investors who fall into the higher resident withholding tax brackets, both the MARAC Term Deposit PIE and the MARAC Call PIE offer great flexibility and enhanced after tax returns. Other key features of MARAC's PIE investments are that they are straightforward and transparent, and there are no fees payable.”
Investors can find out more about the MARAC PIE Fund online at www.marac.co.nz/pies or by calling 0800 26 27 22 to request an investment statement.