The FEI website contains comprehensive information about FEI, its investment products and services. The FAQ section provides quick and easily accessible answers to many questions that you may wish to ask.
1. What does FE Investments (FEI) do?
FEI is a finance company based in Auckland and has been operating in New Zealand since July 2003.
FEI is authorised to accept deposits from public as a non-bank deposit taker (NBDT) and is required to comply with the requirements laid down by the Reserve Bank of New Zealand.
FEI provides financing to enterprises in the property and business sectors.
2. Why should I choose FEI to invest with?
FEI is unique in the New Zealand finance industry for several reasons.
- As at 30th September 2009 FEI equity ratio was 35% vs industry average of 9%.
- FEI has never missed any payment to an investor.
- FEI is part of the FE Group, a New Zealand financial services group. Other FE Group companies include FE Securities Limited, a listing sponsor to the NZAX and NZDX of the New Zealand Stock Exchange; and FE Capital Limited, a private capital placement company.
- The experienced Board of Directors launched the Company in 2003. Client relationships and business lead generation is collectively leveraged from 45 years experience in the New Zealand market by the executive management.
3. Is FEI covered by the Government Deposit Guarantee Scheme?
FEI has a guarantee under the New Zealand deposit guarantee scheme and the existing Crown Guarantee will expire on 12th October 2010. Interest and principal repayments after this date will not be covered by the Guarantee.
For more details on the guarantee, we strongly recommend that you refer to www.treasury.govt.nz.
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4. Who are the Directors of FEI?
The Directors are Mel Stewart, TK Shim and Peter Simunovich.. The Directors and Management of FE Investments have proven backgrounds in the successful identification of soundly based loan opportunities, and are supported by an efficient, expert staff including staff fluent in Mandarin and Cantonese.
5. What are the FEI Directors’ backgrounds?
Mel Stewart has extensive experience in the valuation and financing of rural land and farm stock, as well as residential, commercial and industrial property development both here and in Australia. His former working experience in the Rural Bank and as a director of Elders Finance Limited gives him a comprehensive understanding of issues relating to these areas of finance. Mel has a Bachelor of Agricultural Science degree from Massey University and is a registered valuer.
TK Shim has in-depth experience in corporate advisory services and corporate finance to Small and Medium Enterprises (SMEs). TK specialises in innovative structured financing for companies in the general business sector including arranging bond and unit trust issues, putting in place trade finance, financing acquisitions, securitisation facilities and other debenture lending products. Having gained his law degree from Auckland University, TK was a banking law specialist with some of the major law firms in New Zealand and has also gained banking experience from working with Westpac Banking Corporation.
Peter Simunovich has been in the fishing and seafood processing industries for over 25 years, and has an in depth understanding of the strategic and operational issues facing companies operating in the real economy. Peter is an independent Director of the company, using his business experience and contacts to provide invaluable input on the strategic direction of F E Investments.
6. What investments are available at FEI?
FEI offers Secured Term Deposits that are fully secured by a first ranking security interest over the assets of FE Investments. *
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7. How much do I need to invest?
The minimum investment is NZ$1,000 and thereafter in $100.00 increments. You can choose to invest any amount above this minimum.
8. Does FE Investments offer special rates for large deposits?
Please contact our investment team for quotes on amounts over $50,000.
9. What terms and returns are available?
You can invest for terms of 12 months, 18 months, 24 months or 36 months. Interest rates vary depending on terms involved. Depending on customer’s situation FEI is happy to customize a deposit rate and term to help the investor achieve their financial goals.
Details of our latest rates are set out in the rate sheet accompanying the current Investment Statement and Application Form.
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10. Where is my deposit money invested?
Your investment is pooled with those of other investors and used to fund FE Investment's financing activities. Within the property sector, FE Investments focuses on financial facilities for land subdivision, construction, property development and investment. FE Investments also concentrates in areas within the general business sector where it can add value to business operations by providing financial facilities to support business strategy. The financial facilities to be provided by FE Investments may take the form of advances, discounting of rental contacts, loans or credit support for bridging finance, working capital requirements or other business-related purposes.
11. What fees do I pay?
Investors pay no fees or charges in relation to an investment in secured term deposits. However, there maybe fees payable by investors if investors require payment of interest or repayment of principal to be made to an overseas bank account.
12. How often do I receive interest?
Quarterly interest is payable within five business days of the first business day of April, July, October and January for the preceding quarter (or part thereof). If preferred by the investor, interest can be paid on the maturity date of the Secured Term Deposit to benefit from compounding interest.
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13. What tax rate shall I pay?
The depositor is responsible to pay the income tax on the interests earned. If the depositor is NZ tax resident he/she will be given the option to pay 12.5%, 21%, 30%, 33% and 38% tax rate, If the depositor is a non NZ resident he/she might be qualified to pay the 2% AIL rate only.
To find more information please go to www.ird.govt.nz/rwt.
14. What if I need access to my funds?
Secured Term Deposits are for a fixed period of maturity. Any early withdrawals shall be at the entire discretion of the directors of FE Investments, however FEI’s policy is to agree to such early withdrawal if a depositor can demonstrate (with reasonable proof submitted to FEI) that the depositor would suffer from undue hardship if no early withdrawal is permitted. If early redemption is agreed to by FEI, then, the interest rate maybe reduced to reflect the term of deposits made with FEI. FEI may charge you a reasonable administration fee for any such early withdrawal.
15. Do new investors require proof of identity?
Yes, the Financial Transactions Reporting Act 1996 requires verification of all new investors’ identities.
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16. What’s the application requirement for the investment at FEI?
Please request for a copy of the investment statement from FEI
- Completed application form with customer’s signature
- Acceptable photo ID containing your signature (Eg. Current passport or driver licence.)
* Subject to preferential claims at law and permitted charges (if any)
To learn more about FE Investments, we recommend that you request a copy of FEI’s latest Investment Statement and/or Prospectus, both of which contain our audited financial statements to 30 September 2009. Please call 0800 334 683 or visit our website at www.fei.co.nz.