SunAlliance launch of tax advantaged OEIC funds

MEDIA RELEASE 28 September 2000

Royal & SunAlliance provides access to ‘Best UK Investment Management Group’ with the launch of tax advantaged
OEIC funds

Royal & SunAlliance have teamed up with their UK funds management team to launch Open Ended Investment Company (OEIC) Funds to New Zealanders. The major advantage to investors of OEIC Funds is that unlike New Zealand based funds (which pay 33% tax on capital gains associated with offshore funds); they don’t pay tax on capital gains. An OEIC fund is similar in structure to a unit trust, giving investors the opportunity to pool their money to collectively invest in various funds. The investor owns shares which are similar to the units in a unit trust.

“We aim to offer customers world class financial services and our investment funds are critical in our product mix” said Christine Scott, Managing Director, Life and Investment. “Our OEIC Funds offer customers a history of strong investment performance and the assurance of a highly skilled fund management team. This is reflected in the fact that the Royal &SunAlliance UK fund management team has won the Standard and Poor’s ‘Best UK Investment Management Group’ award for the last three years” she said.

There are 8 investment funds for people to choose from: Emerging Markets, European, EuroTech, Far East, FTSE 100 Tracker, International Growth, Japan Growth and UK Smaller Companies funds. “The European fund has returned 46.8% over one year and 27.5% over three years. This is an impressive return especially when you factor in that you don’t have to pay any tax on that return” said Ms Scott.

“We consider our OEIC Funds to be the most customer friendly of the UK Investment funds in the market. Our charging structure is very competitive, as we don’t charge an entry/exit price ‘spread’ like most of the others currently in the market. Also, as applications are made in NZ dollars, investors don’t have to worry about the conversion to pounds sterling, we will do that for them” added Rod College
Manager, Retail Investment Marketing.

Royal & SunAlliance are launching OEIC funds nationally this week to its network of intermediaries including financial advisers and other investment professionals. For more information and daily updates of our OEIC fund prices, check out our internet site – www.royalsun.co.nz.

ENDS

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