PIE investments refer to any investment held through a Portfolio Investment Entity (PIE) fund in New Zealand. These investments benefit from the PIE tax regime, where your returns are taxed at your Prescribed Investor Rate (PIR) rather than your marginal income tax rate.
PIE investments span a wide range of asset classes. You can invest in New Zealand and international shares, fixed income and bonds, property lending, cash and money market instruments, and diversified multi-asset strategies — all within a PIE structure.
New Zealand’s PIE regime has driven enormous growth in managed fund investment. According to the Financial Markets Authority, total funds under management in NZ have grown significantly over the past decade, with PIE structures accounting for the majority of retail investment flows.
The reasons are clear:
New Zealand’s retirement savings scheme operates through PIE funds. KiwiSaver contributions are invested in your chosen PIE fund (conservative, balanced, growth, or aggressive). Returns compound tax-efficiently until you withdraw at age 65, buy your first home, or face financial hardship.
Non-KiwiSaver managed investment schemes structured as PIEs. These include funds from providers like Milford, Fisher Funds, Kernel, and Simplicity. They offer various risk profiles and investment strategies.
Specialist PIE funds that invest in property-backed loans. Blossum Fund is an example — lending secured by first ranking mortgages over NZ property with a maximum 75% loan-to-value ratio, targeting 8% p.a. returns paid monthly.
Listed PIEs traded on the NZX. Smartshares and Kernel offer NZ-domiciled PIE ETFs covering NZ shares, global shares, bonds, and property.
When comparing PIE investments, focus on these metrics:
| Metric | What to Look For |
|---|---|
| After-Tax Return | Calculate returns at YOUR PIR, not the headline rate. A fund returning 8% at 28% PIR nets 5.76% after tax. |
| Fees (TER) | Total Expense Ratio — includes management fees, admin costs, and performance fees. Lower is better. |
| Risk Level | Match to your investment horizon. Short-term money = conservative. Long-term = higher growth. |
| Underlying Assets | Understand what the fund invests in. Property-secured lending has different risk to share market exposure. |
| Track Record | Look for consistent performance over 3+ years, not just one good year. |
| Liquidity | How quickly can you withdraw? Some funds have lock-ups or notice periods. |
If you qualify as a wholesale investor, you gain access to PIE investment options not available to retail investors. Wholesale PIE funds often offer:
PIE investments are any investments held through a Portfolio Investment Entity fund in New Zealand. They benefit from preferential tax treatment where returns are taxed at your Prescribed Investor Rate (PIR), capped at 28%.
Safety depends on the specific fund and its underlying investments. Property-secured PIE funds like Blossum have tangible collateral. Share-based PIE funds carry market risk. All PIE funds registered with the FMA must meet regulatory requirements.
PIE investments are taxed at your Prescribed Investor Rate (PIR) — either 0%, 10.5%, 17.5%, or 28%. The fund calculates and pays tax on your behalf. You generally don’t need to include PIE income in your personal tax return.
Minimums vary widely. KiwiSaver PIEs have no minimum beyond your contributions. Retail managed fund PIEs may start from $1,000-$5,000. Wholesale PIE funds like Blossum have higher minimums and eligibility requirements.
8% p.a. returns. Monthly distributions. Property-secured.
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