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RaboDirect
 

RaboDirect Managed Funds - Transfer to InvestNow

Rabobank New Zealand Limited has made the decision to discontinue offering Managed Funds via RaboDirect


As a fundamental part of Rabobank’s overall business in New Zealand, RaboDirect will continue to play a key role in raising deposits for Rabobank to lend to its clients in the food and agribusiness sector, and focus on providing great service while taking care of your savings needs.

It is important to us that you have the ability to continue to invest in funds that meet your current and future needs. As such InvestNow Saving and Investment Services Limited (InvestNow) has been selected to give you the ability to transition your existing fund holdings to InvestNow’s platform. An extensive and robust evaluation has determined they are the best partner for you to continue your investment journey with.

Click here to read the media release.

What are your options?

There are two options for you to choose from when deciding what is best for you. If you would like to continue holding the units you currently do, and transfer these to the innovative InvestNow platform, our aim is to make this process as easy as possible for you. If you don’t want to transition, that’s fine, but there are some things you need to be aware of if you do choose this option. All the relevant information to help you make an informed decision is provided below.

Transition to InvestNow

We have developed a straightforward process for you to transition to InvestNow. All we need is your consent to do so. To provide consent either call us on 0800 22 44 33 between 8am - 6pm Monday to Friday, or reply to the secure message we have sent to your RaboDirect account. 


What we will need is:

​Your consent to transition
​​Your InvestNow investor ID if you have an existing InvestNow account
Your preferred email address and/or phone number for InvestNow to contact you
Your current Prescribed Investor Rate (PIR)
Login now to give consent.

Don't transition

There is no need to notify RaboDirect if you do not intend to transition to InvestNow. The link below provides you with a summary of how things will work if we do not receive your consent to transition. 


 

Learn more about InvestNow

Frequently Asked Questions

How do I provide consent to transition from RaboDirect to InvestNow?

  1. Log into your RaboDirect account and reply “Yes, I consent” to the secure message that we have sent you, titled “Managed Funds exit information", and provide us your preferred contact information and current PIR.

    For more information on determining your Prescribed Investor Rate, see the FAQ ‘How do I determine my Prescribed Investor Rate?’

    OR

  2. Phone the RaboDirect Customer Contact Centre on 0800 22 44 33 8am-6pm Monday to Friday and inform the RaboDirect representative that you are speaking with that you would like to transition your Managed Funds holdings to InvestNow. The RaboDirect representative will then read you a statement for you to provide acknowledgement of and authority for RaboDirect to act.

Who needs to provide consent?

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For any RaboDirect accounts that hold Managed Funds, the person (or people) holding a digipass for that account will be required to provide consent to transition. Below we have summarised who this will be for each account type.

Individual – the individual holder of the account (in some instances this may be a person who has been granted Power of Attorney for the individual holder of the account).  Either the account holder or authorised attorney.

Joint – for most joint accounts both individuals will have a digipass and as such we will need consent from both of these people.  If only one individual has a digipass for the account then that person alone needs to provide consent.

Children’s – the ‘Authorised signatory’ who has been appointed to hold the digipass and control the account on behalf of the child. This will generally be a parent of the child who holds the account.

Trust – the ‘Authorised signatory’ who has been appointed to hold the digipass and control the account on behalf of the trust. Note, we do not need consent from all trustees or beneficiaries.

Business – the ‘Authorised signatory’ who has been appointed to hold the digipass and control the account on behalf of the business. Note, we do not need consent from all directors, shareholders or other beneficiaries.

What am I consenting to when I provide instruction to transition to InvestNow?

When you provide consent, you will be giving RaboDirect the authority to do the following:

  1. Provide InvestNow with the information held by RaboDirect and related to your RaboDirect account that will allow InvestNow to open an InvestNow account of the same type as currently held with RaboDirect (i.e. if you hold an individual account with RaboDirect, you will receive an individual account with InvestNow, if you hold a trust account with RaboDirect, you will receive a trust account with InvestNow etc.). See the FAQ, ‘What personal information will you share with InvestNow?’ 

  2. On the migration date (on or around 31 March 2018), transfer the ownership of any remaining units you have on the RaboDirect platform to the InvestNow platform. The technical process for this to happen involves RaboDirect and InvestNow notifying the respective fund managers to change the registered unit holder from Rabobank New Zealand Limited to Adminis Custodial Nominees Limited (the custodian for the InvestNow platform). As is the case with the RaboDirect platform, you will remain the beneficial owner of all units held via the InvestNow platform. 

  3. Should the deduction of end of year PIE tax from your RaboSaver account (which will occur in mid-April) cause this account to become overdrawn, and after contacting you there are not sufficient funds transferred in to clear this overdrawn amount, you authorise RaboDirect to inform InvestNow of the overdrawn amount and for InvestNow to sell an amount of units that will cover the overdrawn amount. InvestNow will then transfer the proceeds from the sale of units back to RaboDirect and these will be applied to your RaboSaver account in order to clear the overdraft. Should InvestNow receive from the sale of units more money than is required to clear the overdraft amount with RaboDirect, this amount will be invested back into the fund from which it was received/paid.

How do I provide consent by secure message?

To notify us by secure message of your intention to transition, and provide your formal consent, follow these simple steps:
  1. Login to your RaboDirect account
  2. Click on the ‘My Rabo’ tab

    FAQ
  3. Click the top message with the subject line ‘Managed Funds exit information’ to read it
  4. To reply, click on the ‘Send email’ button at the bottom of the message

    FAQ
  5. In the reply box, type ‘Yes, I consent’ and provide the additional information requested 
  6. Click ‘Send email’

    FAQ

What personal information will you share with InvestNow?

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We won’t share any more of your information with InvestNow than is necessary for your account to be created and units transitioned across to them. 

In the event we don’t hold enough information for InvestNow to open an account for you, the InvestNow team will be in touch to discuss this with you. See the FAQ ‘What additional information may InvestNow require in order to open my account?’ for more information on what they may need from you.

What additional information may InvestNow require in order to open my account and what happens if I don't provide it?

There may be instances where the information RaboDirect hold for you isn’t sufficient for InvestNow to open your account on their platform. The main reason for this is likely due to changes in legislative requirements since you opened your RaboDirect account. For example there may be differences in the identity documents you are required to provide when opening an account today as compared with 5 years ago.

If there is any additional information that InvestNow require, the InvestNow team will be in touch to discuss these requirements with you.

If, by the migration date, InvestNow have not received sufficient information to open your InvestNow account, they may elect not to transition your units in which case the units will be sold down by RaboDirect with the proceeds (net of PIE tax) repaid to your RaboSaver account.



What are my options once my InvestNow account has been opened?

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Following the receipt of confirmation from InvestNow that your account has been opened, you will be able to start managing your portfolio on the InvestNow platform immediately. You can also continue to trade via your RaboDirect account, but please note there may be restrictions – see the FAQ ‘What are the key dates regarding the transition?’ for more information on trading restrictions that may be in place on the RaboDirect platform. 

Regardless of whether you begin using your InvestNow account immediately or not, the transition of units from RaboDirect to InvestNow will not take place until the migration date (on or around 31 March 2018). Should you wish to move your units from RaboDirect to InvestNow before the migration date, you are free to do so, and the FAQ ‘What if I want to transition before the migration date?’ provides more information on this.

What if I already have an InvestNow account and wish to transition?

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If you already have an InvestNow account, you can notify us of your intention to transition as follows:

  1. Log into your RaboDirect and send us a secure message with the following text copied in:

    I currently have an account with InvestNow Saving and Investment Service Limited (InvestNow) and I give approval for RaboDirect to transition all units I/we hold on the RaboDirect platform on or around 31 March 2018 (excluding Cash Advantage Fund and Term Advantage Fund units) to the same funds on the InvestNow platform.

    My InvestNow Investor ID is: [INSERT NUMBER]

    Following my/our transition of units to InvestNow, should the end of year PIE tax deduction by RaboDirect from my/our RaboSaver account cause my/our RaboSaver account to become overdrawn, and RaboDirect are unable to obtain from me/us sufficient funds to clear this overdrawn amount, I authorise RaboDirect to seek from InvestNow (by way of sale of my/our units from the InvestNow platform) sufficient funds to cover this overdrawn amount. 

    OR

  2. Phone the RaboDirect Customer Contact Centre on 0800 22 44 33, 8am-6pm Monday to Friday and inform the RaboDirect representative that you are speaking with that you currently have an InvestNow account and would like to transition your Managed Funds holdings to this platform at migration date. The RaboDirect representative will then read you a statement (similar to secure message version above) for you to provide acknowledgement of and authority for RaboDirect to act.

What are the key dates regarding the transition?

  • 3 October 2017 - The last day for buying units in funds you don’t currently hold in your portfolio. You will still be able to buy and sell units from the funds currently held in your portfolio, but should the unit balance of any of those funds fall to zero, you will no longer be able to invest in that fund. This date is also the last date for any new customers to invest in Managed Funds 



  • 20th of every month – The monthly cut-off date for us to receive your consent to transition to InvestNow, and have us send your details to InvestNow that month for account creation. InvestNow will be in contact with you by the end of the following month to confirm your account has been opened, or to request additional information.



  • 23 February 2018 - The last day you can provide us your consent to transition to InvestNow. If we have not heard from you by this date, the managed funds units you hold with RaboDirect will be sold on 13 March (with the exception of any units held in the Elevation Capital Value Fund, which will be sold on 23 February 2018) and the cash proceeds (net of PIE tax) will be paid to your RaboSaver account once the sale has been processed and settled. It is also the last day for buying and selling units via RaboDirect (orders must be placed by 12:30pm). All remaining Regular Investor Plan investments set up with RaboDirect  will be cancelled on this day.
  • 13 March 2018 - All remaining units on the RaboDirect platform of those who have not provided consent will be sold down and the cash proceeds (net of PIE tax) will be paid to your RaboSaver account once the sale has been processed and settled.



  • On or around 31 March 2018 – All remaining units on the RaboDirect platform of those customers who have provided consent will be transitioned from RaboDirect to InvestNow.



  • Mid-April 2018 – End of year PIE tax will be deducted from the RaboSaver accounts of all Managed Funds customers. For those customers that transitioned to InvestNow, if there are insufficient funds in your RaboSaver account to cover the PIE tax deduction your RaboSaver account will go into overdraft. If after contacting you there are not sufficient funds transferred in to clear this overdrawn amount, you authorise RaboDirect to inform InvestNow of the overdrawn amount and for InvestNow to sell an amount of units that will cover the overdrawn amount. InvestNow will then transfer the proceeds from the sale of units back to RaboDirect and these will be applied to your RaboSaver account in order to clear the overdraft.



    Should InvestNow receive from the sale of units more money than is required to clear the overdraft amount with RaboDirect, this amount will be invested back into the fund from which it was received/paid.  (See step 3. of the FAQ ‘What am I consenting to when I provided instruction to transition to InvestNow?’). 


Why have you chosen the migration date to be on or around 31 March 2018?

A transition such as this is treated as a taxable event and as such any accrued PIE income against the managed funds you hold will have PIE tax deducted from it. The simplest and most tax efficient time to do this is at a time when PIE tax is already being crystalised for all managed funds you hold – the end of the financial year. 

The end of the 2017/18 tax year is in fact a Saturday (Saturday 31 March 2018), which also happens to be Easter weekend. Given this, RaboDirect will be working closely with each of the fund managers we offer to determine exactly how they will be treating the end of this financial year, and therefore when the transition of units for that particular manager will take place. As such, if you hold managed funds units with multiple managers via the RaboDirect platform, there is a chance those units will transfer to InvestNow at slightly different times around 31 March 2018. 

We will of course keep you informed of when we expect the units of each manager to transfer to InvestNow, something we will know with more certainty toward the end of the financial year.

Why will RaboDirect block buys and sells from 23 February 2018?

In order to settle all outstanding trade requests and finalise the list of unit holders to transition and to sell down, RaboDirect needs to suspend all trading on the RaboDirect platform from 12:30pm, 23 February 2018. If you have elected to transition and your InvestNow account has been set up by this date, you are free to continue buying and selling on the InvestNow platform (you will just not be able to sell any of the units held on the RaboDirect platform).

What if I want to transition before the migration date?

Once your InvestNow account has been set up and you’ve received confirmation from InvestNow that the account is open, you’re free to start trading on this account straight away. 

If you would like to move all of the units you currently hold with RaboDirect to the InvestNow platform before the migration date, you are completely free to do so. Here are the steps you would need to go through in order to do this:

  1. Place a sell order for all of your units on the RaboDirect platform. Once these sell orders have been settled, RaboDirect will pay the cash proceeds (net of PIE tax) to your RaboSaver account
  2. Transfer the sale proceeds from your RaboSaver account to your nominated account
  3. Transfer these funds from your nominated account to your InvestNow cash account
  4. Reinvest into the funds of your choosing on the InvestNow platform
Should you chose to move your units from RaboDirect to InvestNow before the  migration date, we would encourage you to read the FAQ ‘What are the implications of selling down from RaboDirect and repurchasing on InvestNow before the migration date?’ to understand what the impacts of this action may be. 

What are the implications of selling down from RaboDirect and repurchasing on InvestNow before the migration date?

There are some implications that we wanted to make you aware of should you wish to transfer your holdings to InvestNow before the migration date:

  1. Once you have loaded your sale request(s) with RaboDirect, they will be processed and the cash from the sale repaid to your RaboSaver account (in most cases this will take approx. 3-4 business days, but for the Elevation Capital Value Fund, which only receives a unit price once per month, the processing and settlement time could be much longer).

  2. The cash proceeds you receive from selling the units you hold with RaboDirect will be net of PIE tax. This means you will likely have less to reinvest than the full value of your portfolio as had been displayed on the RaboDirect website. 

  3. After you have received the cash proceeds of the sale into your RaboSaver account, it may take you a couple of days to transfer this out to your nominated account and into your InvestNow cash account.

  4. Once you have placed your buy order(s) on the InvestNow platform, they will be processed and the units applied to your InvestNow account (in most cases this will take approx. 3-4 business days, but for the Elevation Capital Value Fund, which only receives a unit price once per month, the processing and settlement time could be much longer).

  5. This means you will be not be invested for a period of time, which could impact the value of your investment once you have re-invested depending on how unit prices have moved while you’ve been out of the market.

  6. Some of the funds offered by RaboDirect and InvestNow have buy/sell spreads, meaning the buy price is higher than the sell price. When selling out of these funds and buying back in again, it means you will receive a lower sale price and have to pay a higher buy price to reinvest in the fund.

Will I be charged any fees to transition to InvestNow?

No, there will be no fees charged to transition to InvestNow. If you leave RaboDirect to take care of the transition of your units on the migration date, you will remain fully invested, so for funds where a buy/sell spread exists, you will not incur any fees to sell down on one platform and buy the corresponding units on the other platform. 

If you choose to move your units across to InvestNow before the migration date, there may be some implications on the value of your investment, and we encourage you to review the FAQ ‘What are the implications of selling down from RaboDirect and repurchasing on InvestNow before the migration date?’ to understand what the impacts of this action may be.

Will my investment value change due to the transition?

If you leave RaboDirect to handle the transition of your units on the migration date, your units will remain fully invested throughout the transition process, so the only change in value will be due to any change in the unit price of the funds. The transition itself will not affect the value of your investment (i.e. you will not be charged any fees to transition or be impacted by the difference between buy and sell prices).

If you choose to move your units across to InvestNow before the migration date, there may be some implications on the value of your investment, and we encourage you to review the FAQ ‘What are the implications of selling down from RaboDirect and repurchasing on InvestNow before the migration date?’ to understand what the impacts of this action may be.

Will there be any PIE tax implications arising from the transition?

Yes, a transition such as this is treated as a taxable event and as such any accrued PIE income against the managed funds you hold will have PIE tax deducted from it.

Given the transition of units is occurring at the end of the 2017/18 tax year (on or around 31 March 2018), this will simply occur as per the standard end of year tax processing for RaboDirect. In mid-March you will receive a secure message from us providing you with an indicative amount of PIE tax that will be payable for the investments you hold (or how much PIE tax refund you may be due for). 

This amount of PIE tax will be deducted from your RaboSaver account in mid-April (after the date that your units are transitioned to InvestNow).

What if I don’t have enough money in my RaboSaver account to pay my PIE tax liability following the transition?

If, following receipt of your consent, we have transitioned your units to InvestNow, and the deduction of PIE tax from your RaboSaver causes this account to become overdrawn, we will get in touch to discuss you transferring money into this account to cover the overdrawn amount. Should you not wish to do this, RaboDirect reserves the right to have InvestNow sell down enough units from your managed funds holdings that were transitioned to them in order to cover this PIE tax liability. 

This will be covered in the consent you provide RaboDirect to have your units transitioned to InvestNow, see FAQ ‘What am I consenting to?’ for more information.

What if I have a Regular Investor Plan set up with RaboDirect, will this be transitioned to InvestNow?

If you currently have a Regular Investor Plan set up with RaboDirect, we will inform InvestNow of this. When InvestNow get in touch with you regarding your account being opened, they will also provide you with information about establishing your Regular Investor Plan on the InvestNow platform. You will be free to create this if and when you choose. 

Once you have created your InvestNow Regular Investor Plan, you will need to login and cancel your RaboDirect Regular Investor Plan. 

All remaining Regular Investor Plans set up with RaboDirect will be cancelled on 23 February 2018. 

Will the RaboDirect deposit products I hold be transitioned to InvestNow?

No, the transition only impacts the third party managed funds products offered via RaboDirect. It excludes all of the other accounts offered by RaboDirect; RaboSaver, PurposeSaver, PremiumSaver, NoticeSaver, Term Deposits, the Cash Advantage Fund and Term Advantage Fund.

What if I want to sell my Managed Funds and invest in a deposit product with RaboDirect?

You are free to do this at any time if you wish prior to 12:30pm, 23 February 2018.  RaboDirect offers a range of deposit options, with information on these available at www.rabodirect.co.nz.

If you would like any additional information on any of these products please phone the RaboDirect Customer Contact Centre on 0800 22 44 33 8am-6pm Monday to Friday.

How do I find out more about InvestNow?

For more information on InvestNow, you can visit their website: www.investnow.co.nz

We have also put together this handy comparison guide to help you understand the InvestNow offering, and screen shots of the InvestNow secure environment so you can see what your account will look like.

How do I determine my Prescribed Investor Rate?

To find out more about Prescribed Investor Rates, and how to determine yours, visit the IRD website here

What if I don’t want to transfer to InvestNow?

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There is no obligation to transition to InvestNow, and if you don’t wish to do so there is nothing you need to do. 

If we do not hear from you with a request to transition by 23 February 2018, on that day any units you hold in the Elevation Capital Value Fund will be sold and then on 13 March 2018 all remaining managed funds units you hold (excluding those in the Term Advantage Fund) will be sold and the cash proceeds (net of PIE tax) paid to your RaboSaver account once all sales have been processed and settled.


Note: You will not be able to sell any units from the RaboDirect platform after 12:30pm 23 February 2018. 

Provide consent to transition