What sort of investment was this?

Evergreen Retirement Trust (Evergreen, or the Scheme) was a registered New Zealand superannuation scheme. The Scheme transitioned to regulation under the Financial Markets Conduct Act 2013 on 30th November 2016 and was designated a Restricted Legacy Scheme by an Order in Council dated 28th October 2016. As a Restricted Legacy Scheme, the Scheme was closed to new members and was not being offered for new investment.

The Scheme was established under a trust deed dated December 1st 2011 principally for the purpose of providing retirement benefits to natural persons who have joined the scheme (Members) or paying benefits to persons who are the trustees of a registered superannuation scheme or a KiwiSaver scheme (Trustee Members). The most recent Scheme Trust Deed was dated 30th November 2016 amended by a Deed of Amendment dated 4 April 2018.

The Scheme was structured as a foreign investment zero-rate Portfolio Investment Entity (PIE) and as such is a tax efficient retirement savings product to New Zealand and offshore investors. Members of foreign investment zero-rate PIEs who are not New Zealand tax residents or who are moving to New Zealand enjoying ‘transitional resident’ tax status over the first four years, and who so elect, are eligible for a zero percent tax rate, and therefore would not be liable for New Zealand tax on income or gains from the Scheme.

Evergreen Capital Partners Limited (Evergreen Capital Partners) was the Delegated Manager of the Scheme.  The New Zealand Guardian Trust Company Limited is the Trustee and Manager of the Scheme (Trustee).  The Trustee delegated the management and administration of the Scheme to Evergreen Capital Partners as Delegated Manager of the Scheme.  Trustees Executors Limited acted as custodian for the Scheme.

Under the Scheme each Member had an individual Member Account in which the Member’s investment in the Scheme is recorded.  Each Member Account consisted of the value of investment holdings in any funds within the Scheme. Liabilities attributable to the Member were deducted from the Member’s Member Account.

The Scheme enabled Members to pool their investments and obtain the benefits of professional investment management.