UK Pension Transfers & NZ Financial Services for Brits

Direct investment in individual shares on the stock market requires research and close monitoring, and it is hard to gauge the degree of risk you are undertaking - you may instead wish to consider investing in the share market via Managed Funds.

They usually have two distinct advantages over direct share ownership;

• greater diversification with use of less capital, and
• shares are selected by professionals drawing on rigorous company analysis.

Diversification means owning a variety of shares and investment types from different industry sectors, so in the event of a major fall in the share price of one company, your entire savings are not threatened.

There are a range of managed funds that invest in NZ shares, as well as many that are NZ and Australasian based but are in invested in other assets such as property, international shares and hedge funds.

The return on share investing through a fund will be reduced by the fees paid to professional managers and tax paid by the funds - although the tax paid by some funds will be considerably reduced by recent changes in tax legislation. As the tax is generally paid by the fund, there is less ongoing administration for you.

There are hundreds of funds to choose from, so there is sure to be one or more out there that meets your requirements. We'd be more specific about the funds we recommend, but due to updates to the Securities Markets Act 1988, we need to have sent you our Disclosure Statements before we can give you these details. If you are interested, we suggest you send off for a copy of our Financial Guide, which will come complete with both the Disclosure Statements and the specifics of the funds.