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What are Managed Funds and how can they help you with investing?

Buy Hold And Sell Signpost Representing Stocks StrategyRather than investing directly into individual shares or bonds, which many people find quite daunting, managed funds (often called Portfolio Investment Entities or PIE’s) provide a way for you to invest into markets and have your investments professionally managed on your behalf by an experienced team of investment professionals.

Devon Funds Management (‘Devon’) is an independent investment management business that specialises in growing our clients’ wealth using the highly qualified and experienced investment team we have assembled. We have always been committed to helping our clients achieve their investment goals.

The benefits

Investing in managed funds is a great way to help you achieve your savings goals and create greater wealth for your future. It doesn’t take much money to get started and, by pooling together large amounts of money, we are able to invest in a portfolio of companies which allows for diversification with the aim of reducing the risk of your investment.

A managed fund is also desirable because it provides access to markets and securities that might otherwise be out of reach for individual investors.

Life gets busy and we are all time poor, so by employing the expertise and resources offered by a professional manager, such as Devon, you may benefit if you do not have the time or skill to manage your own investments.

We believe one of Devon’s strengths lies in our people – a dedicated team of investment professionals with many years experience in the investment industry, both within Australasia and further afield who are actively focussed on managing our client’s funds.

PIEs offer significant advantages from an administrative perspective. We take care of the paperwork involved in buying and selling securities, managing your dividends, interest, corporate actions, reporting and record keeping.

Our Funds are all PIEs for tax purposes, meaning that if you are a New Zealand resident unit holder and have supplied us with the correct Prescribed Investor Rate, tax is usually paid on your behalf at a rate approximating your marginal tax rate and there is no further tax to pay.

PIEs also have a top tax rate of 28% which can also be beneficial for higher income earners. For example, if you normally pay tax at 33%, tax on unimputed income will be paid on your behalf at 28% in a PIE, with no further tax to pay.

There will also be no tax payable on the realised capital gains on most New Zealand or Australian shares held by the Fund.

Click here for further information or feel free to contact us on:

Freephone: 0800 944 049, Email: admin@devonfunds.co.nz

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