Company News
A busy time of year calls for a hands-free Investment Opportunity
New Zealand’s immigration and investment policy provide opportunities for Singaporeans to obtain New Zealand residency by making a substantial investment to the country. This can absolutely be fuss-free and simple when you invest with us! Williams Corporation Capital Partnership LP (Fund) is a compliant investment for the purposes of making an acceptable/growth investment under the current New Zealand Migrant Investment Categories.
Residence Visa and Acceptable Investment
There are two categories of Investor Visa for New Zealand, Investor 1 and Investor 2. Investors can invest in our Fund and use that investment to obtain Residence Visas under these two categories.
Investment placed into our Williams Corporation Capital Partnership LP (Fund) is fully compliant in accordance with the Immigration New Zealand (INZ) Operational Manual (Instructions), that:
1. the investment is meeting the definition of ‘acceptable investment’ in relation to paragraphs BJ3.10.25 (Investor 1 Category), BJ5.50 (Investor 2 Category) and F3.10.25 (Parent Retirement Category) of the Instructions; and
2. the Fund meets the definition of ‘growth investment’ under Instructions BJ3.15.1 and BJ5.45 for the Investor 1 and 2 Categories respectively (allowing any investment in the Fund to contribute towards a “growth investment” allocation at 25% and/or 50% to allow the physical presence flexibility offered under these categories).
Once the investment is made for a period of time (being three years for Investor 1 and four years for Investor 2), the investors can change their Residence Visas to Permanent Residence Visas which will remain indefinite and will never expire.
Summary Of Requirements
Below is the basic summary of the requirements of Investor 1 and Investor 2 Category under the definition of acceptable investment:
Significant and detailed policy applies to each of these investor categories, although we list a few of the key aspects of the particular policies which should be understood as part of the first phase of due diligence.
The investments made under these categories are restricted by the New Zealand Government. However, New Zealand holds one of the most flexible investment based visa policies in the world when compared to New Zealand’s main investment based visa competitors (that include Australia).
The definition applied by the New Zealand Government in relation to the term ‘acceptable investment’ is an investment that:
- is capable of a commercial return under normal circumstances; and
- is not for the personal use of the applicant(s); and
- is invested in New Zealand in New Zealand currency; and
- is invested in lawful enterprises or managed funds that comply with all relevant laws in force in New Zealand; and
- has the potential to contribute to New Zealand’s economy; and is invested in either one or more of the following:
- bonds issued by the New Zealand government or local authorities; or
- bonds issued by New Zealand firms traded on the New Zealand Debt Securities Market (NZDX); or
- bonds issued by New Zealand firms with at least a BBB- or equivalent rating from internationally recognised credit rating agencies (for example, Standard and Poor’s); or
- equity in New Zealand firms (public or private including managed funds and venture capital funds); or
- bonds issued by New Zealand registered banks; or
- equities in New Zealand registered banks; or
- residential property development(s) or
- commercial property; or
- bonds in finance companies; or
- eligible New Zealand venture capital funds; or
- philanthropic investment; or
- ‘angel funds or networks’ investments.
Growth Investment
New Zealand Government encourages the establishment of growth investments under these policies. Applicants who chose to do so will receive flexibility around meeting the physical presence requirements under both categories, and under the Investor 2 Category can also reduce the minimum investment as set out in the above table. Here is a useful summary:
As to the definition, a growth investment is any acceptable investment under the policy other than:
- bonds (including convertible notes); and
- philanthropic investments.
It is therefore very standard for applicants to hold mixed bond/equity portfolios at the 25% ratio (i.e. NZD 2.5 million for Investor 1 and NZD 750,000 for Investor 2) if the NZ$0.5 investment reduction is not required, or 50% (being NZD 1.5 million for Investor 2) if that is going to be the difference between qualifying for a visa, or not.
As a final comment, especially with portfolios that are mixed, is the basic investment concept that equity investments need to be held for 5-7 years to smooth out falls in the market over a short term. Investors contemplating bond/equity mixes at these ratios for investment terms tied in with the immigration process (only) will need to understand that risk prior to investment if the intention is not to hold the equity investments post the term of the investment required under the visa policy concerned.
Please also note that INZ do re-assess compliance on investments on these types of investments on a case by case basis. While we have engaged Lane Neave to secure an opinion from INZ that the Fund appears to be acceptable as per the above in the absence of a particular application, and it is the opinion of Lane Neave that it is acceptable in all respects, any investor who is contemplating investment can also confirm compliance with INZ direct via InvestorFundsQueries@mbie.govt.nz, or alternatively they may wish to seek an opinion from an appropriately qualified specialist in this area prior to investment.
Upcoming Policy Changes Signalled
The New Zealand Government announced that there is a current revision of the New Zealand Migrant Investment Categories underway, and changes are expected as a result of that at any time. This may include a change of the terms and definition of an acceptable/growth investment. Do take this opportunity as soon as possible to submit your application if you wish to obtain residency in New Zealand under the current settings, to enjoy great capital returns at the same time. Talk to our Singapore Client Consultant now and they will be happy to assist you.
