Fund Hosting New Zealand

What is Fund Hosting and who is it for?

The Fund Hosting service offered by IIS is similar to the third party responsible entity services that are available within the Australian market. Fund Hosting involves the issuing and managing of funds, under IIS’s MIS licence, on behalf of an investment manager who wants to provide NZ investors with access to their investment solutions in PIE funds.

Fund Hosting is suited to a wide range of clients, including domestic and international investment managers, KiwiSaver providers, private wealth/advice firms, family offices and specialist investment groups.  IIS’s expertise is in working with clients to deliver expert solutions to complex problems.

IIS is licenced as a “manager of a registered scheme” under New Zealand’s Financial Market Conduct Act 2013 (FMC Act).  This enables IIS, through our Fund Hosting business, to issue and manage funds in NZ for:

  • offshore investment managers who want to offer PIE-compliant funds to NZ investors, but don’t want to go through the licencing process themselves; and
  • domestic investment managers who want to outsource the issuing and managing of their funds, so they can concentrate on investment management and distribution activities; and
  • adviser and family office groups who want to create bespoke investment fund solutions as part of their investment proposition or to create economies of scale; and
  • wholesale investors like superannuation schemes and tax exempt groups who want to create economies of scale and better portfolio outcomes by using funds to aggregate their investments with other like-minded investors.

The IIS Fund Hosting business recognises the benefits provided from working with leading organisations, and business partners include Public Trust (supervisor and trustee services, and custody), MMC (fund administration, unit pricing, registry and custody), BNP Paribas (custody and fund administration), Adminis (fund administration, unit pricing, custody and registry), PWC (audit and tax), and DLA Piper (legal).

Fund Execution.

Sitting within the existing IIS Fund Hosting business, our offering also extends to Fund Execution services. Fund Execution leverages off the expertise the IIS team have in issuing and managing funds for clients as a ‘Fund Host’, but carries out these activities under the Fund Execution client’s MIS licence.  For those NZ-based managers looking to retain their MIS licence, and ultimately issue funds under that licence, IIS Fund Execution services allows them to outsource some of the pain points they may experience during fund establishment or ongoing operations.  The IIS team can assist at any point in the process, from taking an embryotic fund idea and assisting a client to bring that fund to market, through to assisting a client with day to day operational and compliance matters (such as creating monthly fact sheets, preparing quarterly Fund Updates, maintaining scheme and offer documents, preparing Annual Reports or running daily cashflow processes and liquidity management). The breadth of service able to be offered to a Fund Execution client is very similar to that available to a Fund Hosting client, with the key difference being a Fund Execution client maintains their MIS licence and the responsibility that goes along with this.

Utilising IIS’s Fund Execution services allows managers of any size to focus their time and effort on core value-add activities, while outsourcing more operational and compliance related activities to a proven expert in the area of issuing and managing PIE funds.

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