Higher, Compounding Returns
than a standard call account

As a Portfolio Investment Entity (PIE), the Direct Broking Call Account can benefit all investors when compared to a non-PIE call account, at the same interest rate.

Direct Broking call account rate:

2.85% p.a.

Higher, compounding returns
Tax on income earned on your PIE investment is usually paid annually, not monthly, so returns on your investment can compound to higher levels during the year. Even retirees on the 19.5% income tax bracket can benefit.

High income earners pay less tax
The PIE status caps the tax rate on income to 30% p.a.

You can save money on share trading
Direct Broking's DIY internet share and bond investors, with enough money in their Direct Broking Call Account to cover the trade, get our cheapest brokerage rates.

The Direct Broking Call Account only invests in deposits guaranteed under the New Zealand retail deposit guarantee scheme. All funds are currently invested in on-call and term deposit accounts with ANZ National Bank Limited

Features of the Direct Broking Call Account ("Fund") are:

Designed as a settlement account for share trading activities

You earn a competitive rate of interest

Telephone access to your funds via an experienced operator⁽¹⁾

Return on your investment accrued daily and distributed monthly

Monthly statements keeping you informed of transactions and account balances

Account holders can make regular deposits to their account under the savings option

Portfolio Investment Entity ("PIE") status means tax on your investment is capped at 30% p. a.

⁽¹⁾	For same day withdrawals, requests must be made by 3pm on a business day

New Zealand retail deposit guarantee scheme

There are conditions on the availability of the guarantee to investors. These include:

Maximum guarantee limit of $1,000,000 NZD per investor;

Investor eligibility criteria - the guarantee is not available to related parties of Direct Broking Limited or financial institutions, and;

The termination date which applies to the scheme - the guarantee is only available until 12 October 2010.

Further information about the retail deposit guarantee scheme, the conditions, a copy of the deed of guarantee and the deed of nomination, are available free of charge at www.treasury.govt.nz

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Click Here to download a PDF (Adobe) copy of the Direct Broking Call Account Investment Statement and application form.

Please note you require the Acrobat Reader to view PDF documents, if you don’t have Adobe Reader, click here to download this for free!

Manager

Direct Broking Limited is a wholly owned subsidiary of ANZ National Bank Limited and is the manager and issuer of the Direct Broking Call Account.

Trustee

The Trustee of the Direct Broking Call Account is New Zealand Permanent Trustees Limited.

The Trustees address is:

Level 10
141 Willis Street
Wellington
New Zealand

Investment and Administration

Direct Broking Limited is the issuer and manager of the Direct Broking Call Account. Direct Broking Limited is a wholly owned subsidiary of ANZ National Bank Limited. Units in the Direct Broking Call Account do not represent deposits or other liabilities of ANZ National Bank Limited or Direct Broking Limited. The Direct Broking Call Account is subject to investment risk, including possible delays in repayment and loss of income and principal invested. No member of the ANZ National Bank Limited group (which includes Direct Broking Limited), New Zealand Permanent Trustees Limited or any other person guarantees the Direct Broking Call Account.

Direct Broking Call Account Objective

The objective of the Direct Broking Call Account is to provide investors with a competitive, easily operated and well managed investment account.

Investment Strategy

The Direct Broking Call Account is a designated "Group Investment Fund". This means it only invests in a portfolio of Government and local authority negotiable short term securities, deposits with trading banks, registered first mortgages and other investments which designated Group Investment Funds may invest in without losing that status under the Income Tax Act 2007. The Trustee holds the assets of the fund on trust for investors.

Tax Rates

Your Inland Revenue Department (IRD) number must be provided on your Direct Broking Call Account Application. Your Prescribed Investor Rate (PIR) is the rate at which income tax is deducted from income earned on your investment. You can elect a PIR rate of 0%, 19.5% or 30% p.a. and you will be asked to reconfirm this each year.

Please note; if an IRD number is not provided then tax is deducted at 30% p.a.

The Direct Broking Call Accounts tax liability on PIE income allocated to its tax-paying investors will be deducted at the earliest of the three following times in respect of each tax year. The tax liability will be deducted by cancelling units equal to the value of the tax liability:

At the end of the tax year (following 31 March);
Upon a full withdrawal; or
If at any time, especially upon a partial withdrawal (including standing redemptions) or upon a partial switch, the balance of the remaining units is, or could potentially become insufficient, to cover the Direct Broking Call Accounts accrued tax liability on income allocated to such an investor. In these circumstances, this will be deemed a full withdrawal and tax will be deducted on account of the accrued liability. The Manager will consider potential market movements when determining whether the remaining units are of sufficient value to cover the tax liability.

A refund of tax will be provided to the Fund to compensate for PIE tax losses or excess tax credits (if any) relating to tax-paying investors, which is then allocated to such investors by way of issue of additional units. If the correct tax rate has been elected, the tax paid on income allocated to tax-paying investors will be a final tax and no obligation to file a tax return (in respect of this investment) will arise as a consequence. There is also no impact on family assistance eligibility, student loan repayment obligations or child support payment obligations.

Frequently Asked Questions and Answers

At Direct Broking Limited, we aim to make our communication with you as simple and direct as possible. Below are some frequently asked questions and answers. If these do not address your queries, please call us on 0800 338 637.

Direct Broking Call Account FAQ’s
Questions	Answers
Who is involved in providing it for me?	The name of the product being offered is ‘the Direct Broking Call Account’. The Direct Broking Call Account is a Group Investment Fund that invests in a range of quality, negotiable, short-term securities and deposits.
Is there a minimum deposit?	No.
How and when can I withdraw funds?	All investors have ready access to funds by phoning Direct Broking on 0800 338 637 by 3pm (weekdays).
Are there charges for withdrawing money?	No.
When are returns on my investment paid?	The income on your investment is calculated daily on the balance of your account and credited to your investment at the end of each month.
How are investments made?	You may use the internet and telephone banking facilities set up on your bank account to make funds transfers into your Direct Broking Call Account. Alternatively cheques should be posted to Direct Broking Call Account PO Box 1790 Wellington.
How is my balance affected when buying and selling shares?	The proceeds from any sales when distributed after brokerage is paid will be automatically deposited into your Direct Broking Call Account. Payment for purchases will be automatically debited from your Direct Broking Call Account (if you have provided Direct Broking Limited with a debit authority).
When do I receive statements?	Statements are posted monthly.

A copy of the latest Direct Broking Call Account Investment Statement is available here

A copy of Direct Broking Limited's disclosure statement prepared pursuant to the Securities Markets Act can be obtained free of charge here

Please call 0800 338 637

for more information about our Direct Broking Call Account.


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