Distributable Income
All moneys received for clients by the Māori Trustee are held, in trust, in the Common Fund. On 1 July 2009 the Māori Trustee Amendment Act 2009 brought about some important changes to the way the Common Fund is operated.
The key change is that from 1 July 2009 all accounts in the Common Fund are eligible to receive distributable income.
Here are answers to some commonly asked questions about distributable income.
What is distributable income?
Distributable income is the income received from all Common Fund investments less the Māori Trustee’s management fees.
How is my share of distributable income calculated?
Distributable income is calculated monthly. Your share of the distributable income is calculated on the basis of how much money your client account has on the last day of the calendar month as a proportion of the total amount of account holders’ funds held in the Common Fund.
Is this interest?
No, it is not interest. Distributable income is a share of the income received from the Common Fund investments, less the Māori Trustee’s management fees.
How much is the Māori Trustee's management fee?
The base management fee is currently set at 0.75% of the market value of the Common Fund. This fee is in line with what other fund managers charge for managing similar investments. The Māori Trustee may also charge a supplementary fee to recover expenses associated with managing the Common Fund which are not covered within the base fee.
How will I know how much distributable income I got?
If we have a current address for you, the Māori Trustee will send you a statement that tells you how much distributable income you received, and the management fee for your account. It will also show you how much tax has been withheld and paid to IRD on your behalf.
When will my distributable income be paid into my own bank account?
The Māori Trustee makes payments from Māori Trustee accounts to clients’ own bank accounts when the balances meet certain minimum thresholds. Our current policy is as follows:
- Where we have your New Zealand bank account details we will pay you by direct credit once there is $5 or more in your client account.
- Where we do not have your bank account details but have your confirmed contact details and you live in New Zealand, we will send you a cheque once there is $100 or more in your client account. If you are currently being paid by cheque and would like to arrange for direct credit payment, e-mail us on info@maoritrustee.co.nz or call our Client Services Unit on 04 819 9240 or write to us at: Māori Trustee Client Services Unit, Box 5038, Wellington 6145.
- Where we have your overseas bank account details, and you live overseas, we will pay by telegraphic transfer once there is $250 or more in your client account.
- Where we have your confirmed overseas address but no bank account details, we will pay by cheque once there is $250 or more in your client account.
If the amount of funds in your account does not meet the threshold, it will stay in the account until the payment threshold is reached.