Not sure I am ready to try and give this market a good "Rogering" (you see what I did there) ;), yet.
You piqued my interest JT. 300% over how many years ?
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Not sure I am ready to try and give this market a good "Rogering" (you see what I did there) ;), yet.
You piqued my interest JT. 300% over how many years ?
Hey I'm not promoting PIE as a best in breed sorta fund.I know like many new funds it started out strongly performance wise with some of its funds but prob has reverted to the norm more recently.I don't compare, I'm leaving this until I need the funds for some other purpose . I will check tonite ,may have been re 2014 I got in.Its the strategy of sticking and not fiddling which has worked for me.
That Australasian Dividend fund one with average annual returns of 17.5% in the last decade is pretty impressive. I was going to throw them a few hundred thou for investment in January but as mentioned above I'm glad I didn't because its come back around 10% since then.
Even the best funds struggle when the tide is going out fast. Maybe when the dust settles later this year I'll throw them a bone.
The bit I haven't got my head around is PIE tax. I am in 3 funds with Investnow and I got a PIE tax bill last year for around $300. However, as these were only paper gains rather than realised profits, it seems to me that I am better to have those funds invested in shares. The funds are now lower than what they were this time last year and yet I've paid a tax for something I never earned. I must be missing something I think......
i have no funds with pie , i was just alluding to the fact some funds concentrated in energy / commodity sectors are doing well this yr at this point in time.
unfortunate for pie they didnt read the tea leaves correctly late last yr and missed the boom in these sectors.
'Investnow' is a platform through which you can aggregate different funds under one umbrella. One of these providers is 'Pie funds' (a particular investment fund provider) which like many of the funds under the umbrella is a PIE fund (the capital letters standing for category of investment dubbed a 'Portfolio Investment Entity' which implies certain tax advantages for high tax bracket investors).
If your investment is in a Pie fund, or a more general PIE fund, my experience is that the PIE tax rate defaults to the maximum PIE rate of 28%, unless you instruct otherwise and the income tax department confirms you are eligible for a lower PIE withholding tax rate. Thus I am baffled as to what has happened to you Mickey. You should never get a PIE tax bill, as all PIE tax should be prepaid at a pre-approved rate. The only thing I can think of is that if some of your PIE tax was taken off incorrectly at a low rate, then you may be required to declare that part of your PIE income as part of your normal income tax return so that the IRD can equalise a prior mistake in your PIE tax deduction rate. (Normally you are not required to put your PIE income into your own personal tax return). Is that anything like what happened to you Mickey?
PIE tax is generally levied on the income portion of your PIE investments. There is no PIE tax on capital. But the capital value of investment assets can go up or down. So it is possible to pay PIE tax on your PIE income, and yet end up with a lower amount of capital overall at the end of the year than at the start (because your income gained is less than your capital lost). That might explain your latter mystery on 'disappearing funds' at least.
SNOOPY
Snoopy I have 5 funds with PIE Investments and 3 with Fishers. All PIE investments. Tax is shown throughout the year as it increases/decreases and then is paid by a reduction or increase in units at year end. (tax year). Kiwi saver is treated the same way. This is what Mickey is probably referring to. It is within the fund.
Yes, that is what I am referring to 777 - I wasn't clear enough. It wasn't IRD who charged me a PIE tax - just Investnow. Perhaps I'm not comparing apples with apples but I don't understand why I'm paying PIE tax on the fund each FY but not on a share. Surely, the only time I make a profit or loss is upon selling, which is when the tax should be applied on the capital gain. I feel that I am better off if I had $100K invested in a PIE share like Barramundi when I'm only paying tax on the dividend while I continue to hold the base shares irrespective if they increase in value. However, if I have $100K invested in a PIE fund such as those offered by Investnow - then I pay tax on any gains throughout the year as well as tax on any dividends I get.