New Zealand Endeavour

An independent review by our team of experts.

Review summary

New Zealand Endeavour

The New Zealand Endeavour Fund is a New Zealand QROPS open to non-New Zealand residents. It is registered with New Zealand's Financial Markets Authority. 

New Zealand is ranked as one of the least corrupt jurisdictions on the Corruption Perception Index, and is therefore seen by many as a jurisdiction with strong investor protections. 

Whilst the firm maintains that it is ‘business as usual’ for existing members, as of 1st December 2016 the scheme was closed to new members.

(Remains a QROPS and is on the HMRC notification list (as at 19.10.17))

Overview

The scheme's investment choices are limited.  

You can select from the following range of portfolios from TAM Asset Managenent, an FCA regulated discretionary fund manager:

  • TAM “Premier” GBP Liquidity Plus (Cash Fund)
  • TAM “Premier” GBP Cautious
  • TAM “Premier” GBP Balanced
  • TAM “Premier” GBP Growth
  • TAM “Premier” GBP Adventurous Growth

There is also the possibility to hold the funds via RL360 Life Insurance Company. 

We question why this would be appropriate as it adds an unnecessary expense to the client.

As any payments made from the QROPS are made gross, the client is not reliant on double taxation treaty agreements (as in the case of Malta) and is not subject to local tax (at 2.5% in the case of Gibraltar, 7.5% in Isle of Man). 

The pros

  • Investment options via a FCA regulated Discretionary Fund manager, TAM Asset Management
  • Investments are held on TAM’s behalf with independent custody agents Pershing Securities Limited

The cons

  • Don't offer a flexi access drawdown as it remains subject to the "70 %" rule
  • Not operating in other jurisdictions although there is an agreement in place to transfer to third party SIPPs and QROPS.
FAQs
Should I choose TAM or RL360?

Your choice may be best guided with independent financial advice.

TAM:

TAM was established to provide discretionary investment portfolio management services, with the idea that every investor should have access to professionally managed investment products, full information transparency and quality real-time data that was previously reserved only for large institutional clients.

TAM works with private clients, trusts, pension funds and charitable organisations, offering each a tailored service to suit their individual requirements.

Investments are held on TAM’s behalf with independent custody agents Pershing Securities Limited (Pershing Securities).

Pershing Securities are part of The Bank of New York Mellon Group, one of the world’s largest financial institutions.

RL360:

Members can elect the Scheme to reinvest their Scheme contributions through a RL360° Personal Investment Management Service (which as a capital redemption bond structure) in a portfolio that reflects the asset allocation from time to time applicable to the TAM "Premier" GBP Balanced Portfolio.

RL360 is authorised and regulated by the Isle of Man Insurance & Pensions Authority.

RL360 was established in 2008 as a result of a merger between two Isle of Man-based life insurance companies, namely Scottish Life International Insurance Company Limited and Scottish Provident International Life Assurance Limited.

In November 2013, RL360 was bought out by its management team.

RL360 is supported financially by Vitruvian Partners, Munch Re Group and the former parent Royal London Group.

RL360 operate in the Far East, Africa, the Middle East, Emerging Europe, Latin America and the UK with offices in the Isle of Man, Hong Kong, Lebanon and Dubai. As at 31 March 2014, RL360 had 220 staff and the company was looking after approximately US$3.7 billion worth of assets for clients.

RL360 have policyholders residing in 170 countries all over the world.

Seek expert, personalised, independent advice.

Is the New Zealand Endeavour QROPS recognised by the NZ Inland Revenue Department for tax purposes as a retirement scheme?

Yes.

The NZ Endeavour Fund is registered under the Superannuation Schemes Act 1989 (NZ) and is recognised by the NZ Inland Revenue Department for tax purposes as a retirement scheme.

Portfolio Investment Entity (PIE) Taxation on investment gains for New Zealand residents enrolled in New Zealand superannuation schemes or managed funds that are registered as a Portfolio Investment Entity (known locally as a "PIE"), is based on the member's PIR (Prescribed Investor Rate), which broadly equates to the member's marginal tax rate.

For offshore members (i.e. members not resident in New Zealand), Portfolio Investment Entities are permitted to apply a PIR of zero percent – provided the investment portfolio earnings attributed to the offshore member do not exceed certain international and locally sourced income ratios.

The Scheme’s assets are invested mostly offshore for this reason.

The trustee of the NZ Endeavour Fund will ensure members’ account balances are invested to take full advantage of the above regime for offshore members.

Customer reviews
Transferred out

I was initially comfortable with Endeavour...until QROPS changes and the fact the scheme's now closed to new members.

My discomfort led me to transfer out...

Expert verdict
Expert Assessment of New Zealand Endeavour

In our opinion, the key drawback is the fact that as current UK legislation stands, Endeavour may not offer flexi access drawdown as it remains subject to the "70 %" rule.  Endeavour has recently reached an agreement with Elmo Pensions in Malta and London, and Colonial Simple SIPP to allow transfers to Malta and the UK.

Our opinion is that Endeavour is NOT a viable option for clients whatever their circumstances, and there are far better and more flexible alternatives.

Read the UK regulator’s advice on pension transfers here.  NEVER deal with a firm that isn’t authorised as a UK pension transfer specialist.

If your pension is currently held by Endeavour we recommend that you seek an update on your options from a suitably qualified pension adviser.  You can also request a free, no obligation X-Ray Review™ to give you the information you need to make a decision on the best way forward.

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