Te āhei atu ki ngā hinonga kohinga haumi Eligibility to be a portfolio investment entity

Entities must meet certain criteria to become a portfolio investment entity (PIE). There may be exceptions and variance to these requirements. Detailed requirements are in our PIE guide.

Requirements for an MRP

• At least 90% of the entity’s income must be passive.
• Investor interests must give the same rights to entity income.
• The PIE must adjust members’ accounts to reflect their notified or prescribed investor rate.

Requirements for a listed PIE

• At least 90% of the entity’s income must be passive.
• Be or about to be listed on a recognised stock exchange in New Zealand.
• Have only one investment class.
• Investor interests must give the same rights to entity income.
• Full imputation credit.

Requirements for a benefit fund and life fund PIE

• At least 90% of the entity’s income must be passive.

Requirements for a land PIE

• At least 90% of the entity’s income must be passive.
• Hold more than 50% of its investments in land or land holding companies.
• Land losses can only be offset against income from that same land class.

General requirements for all PIEs

• Entities must be New Zealand residents.
• Entities must be a company, trust or superannuation scheme.
• Entities cannot have ceased to be a PIE in the last 5 years.
• PIEs other than Listed must have investor classes which include at least 20 investors or have a specified investor such as another PIE.
• An investor generally cannot hold more than 20% of investor interests in a class.
• PIEs generally should not hold more than 20% of voting or value interests in a company or investor class.

At least 90% of the entity’s asset value must be:

• an interest in land
• a financial arrangement
• an excepted financial arrangement
• a right or option concerning these investment types.

At least 90% of entity income must be derived from property under the requirements above or consist of:

• dividends
• replacement payments
• income treated under the financial arrangement rules as derived by the entity
• income under a lease of land
• proceeds from the disposal of property noted above
• foreign investment fund income
• income attributed from another PIE
• distributions from superannuation funds
• management fee rebates.