Assumptions and Methods of Calculation for Illustrative Financial Information

The Manager may from time to time provide Members and prospective Members with illustrations of projected returns from their membership or prospective membership of the Trust, and may also provide general illustrations of projected Credited Earning Rates of the Trust Fund.

All such illustrative financial information will be based upon the anticipated future management of the Trust as envisaged by the Manager and assumptions as to future contributions to the Trust by Te Rūnanga o Ngāi Tahu.  Projected rates of return are prepared from assumptions as to future returns, revenues and expenses, including assumptions as to future contributions by Te Rūnanga o Ngāi Tahu, to enable Members to obtain an indication as to the possible returns on their savings.  The projections should not be used for any other purpose.  The assumptions are based upon the Manager’s judgement as to the most probable economic and other conditions affecting the Trust Fund, following consultation with Te Rūnanga o Ngāi Tahu and its advisers.  It is not intended that the projected rates of return will be subsequently updated unless the Manager is obliged to do so or unless the Manager decides for any reason that a different projected rate of return is appropriate for the Trust Fund.

Each illustration provided by or on behalf of the Manager will assume that:

  • Where an illustration for a particular Member is based on regular contributions being made by the Member, those contributions will be made until the date and at the rate specified in the illustration, on the first day of each month commencing with the month following the date on which the illustration is provided.
  • Unless stated otherwise, it is assumed that the Member’s notified PIR will be 28%, and their RSCT rate will be 30%, throughout the illustration period.  It is assumed that an investor at this top PIR will receive 4.96% after tax and investment fees, reflecting the Manager’s reasonable expectation of a possible rate of return that might realistically be expected to be achieved over the life of the investment.
  • Matching contributions will be made by Te Rūnanga o Ngāi Tahu at the rate of $1.00 per $1.00 contributed by each Adult Member under 65, to a maximum of $200 per Member per year, paid on 31 March each year. It is assumed that these contributions from Te Rūnanga will be made prior to 1 October each year. Māori Authority Tax Credits of 10.5% will be attached to the payment which will offset part of the applicable tax liability.  Any remaining RSCT liability will reduce the amount of Matched Savings contributions that are able to be credited to the Member’s account.
  • Any registered tribal individual who is enrolled with Whai Rawa and is aged under 65 in any given year will receive a $45 distribution payment.  The distribution will be paid by no later than 31 March in the calendar year following enrolment and is subject to RSCT.
  • Any registered tribal individual who, during the 2016 Calendar Year is enrolled with Whai Rawa before their first birthday will receive a $100 distribution payment.  The distribution will be paid by no later than 31 March in the calendar year following enrolment and is subject to RSCT.
  • Māori Authority Tax Credits arise from tax paid at the rate of 19.5% in respect of any taxable income earned by Te Rūnanga o Ngāi Tahu.  For illustrative purposes, 100% of Matched Savings of $200 will be assumed to be eligible and Te Rūnanga will partially impute these at 10.5%.  Thus, a tax credit of $23.46 (10.5% of $223.46 x 100%) will be deducted from the tax attributable to the Member’s Matched Savings.
  • All costs and expenses associated with the Trust and the Trust Fund, other than costs or expenses incorporated within the investment return achieved by the Trust on its investments, will be met as follows:
    •  All investment fees will be met by members until further notice.  These fees will be made up as follows: A gross investment management fee of 0.49% per annum is charged on the Portfolio and is calculated as a percentage of the net asset value of the Portfolio.  The investment management fee is deducted from the Portfolio before the unit price is calculated and allocated to the Member Account. The Trustee of the investment manager is also entitled to recover expenses incurred in operating the Portfolio.  There is no limit on the amount of expenses that can be recovered, but based on past years, these expenses are not expected to exceed 0.02% per annum of the Trust Fund’s gross assets.
    • The net of tax investment fees for each Member are calculated by reference to the PIR that the Member has notified to the Manager for each tax year commencing 1 April.  The increased tax paid by Members on a higher PIR means these Members also receive a higher tax credit on their fees, resulting in lower net fund costs.
  • All other costs and expenses will be met by Te Rūnanga o Ngai Tahu under the terms of the Service Level Agreement, while Whai Rawa Fund Fund Limited remains the manager of the Whai Rawa Unit Trust. While this is assumed for the purposes of this illustration, Te Rūnanga o Ngai Tahu has only agreed to meet these costs up until 30 June 2017.
  • The illustrations on this website are illustrative only and no actual results are promised.  No guarantee has been expressed or implied by Te Rūnanga o Ngāi Tahu as to the extent of its future contributions (if any) to the Trust, and the extent to which it will continue to meet costs and expenses.  Actual returns are unforeseeable and may differ materially from those illustrated or assumed.
  • The assumed rate of Credited Earnings is based on assumptions as to the present and forecast environment, current taxation conditions, long-term interest and inflation rates, future expenses and the Manager’s long-term investment strategy for the Trust.  The tax rules and rates assumed above are based on current law.  The tax treatment and rates actually applied may vary in the future.  Te Rūnanga o Ngāi Tahu may, in the future, vary the extent or rate as to which Māori Authority Tax Credits are attached to Te Rūnanga o Ngāi Tahu contributions.  The impact of tax and tax credits on returns will vary on a case by case basis to reflect individual Member marginal and portfolio investor tax rates.
  • Calculations of projected returns and the manner in which illustrations are provided will also be subject to any limitations imposed or recommended by any regulatory authority or applicable industry body.