Investing has never been easier with Squirrel's Monthly Income Fund

Earn a regular income from your investments with projected distributions over 4.50%p.a. paid to you or automatically reinvested every month.


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Plenty of reasons to invest

  • Income paid or reinvested each month
  • Invest in a diversified portfolio of loans predominantly backed by residential property
  • Reserve Funds to help protect against missed repayments
  • Get your money out at no cost with a 30 day notice period
  • Low Funds Management Fee

For the Squirrel Monthly Income Fund Product Disclosure Statement, click here.

Squirrel investors have never had a missed payment to date, and we intend to keep it that way.*

What you get with Squirrel's Monthly Income Fund

A regular, monthly income

You can have your distributions paid back to your account, or automatically reinvested each month.

Lowered risk with our unique Reserve Funds

We have Reserve Funds which help protect against missed borrower repayments, provided there are sufficient funds available.

The power to get your money out

The notice period is just 30 days, and it won't cost a thing to get your money out.

A diversified portfolio, backed by residential property

Invest in loans that are predominantly secured by first mortgages.

How does Squirrel's Monthly Income Fund work?

Rather than investing directly into Squirrel's market place and managing it yourself, you can invest into the Squirrel Monthly Income Fund.

Implemented Investment Services (IIS)2 is the issuer and fund manager and Squirrel is the investment manager of the Fund. IIS provide fund hosting services to some of the largest fund managers in the world.

InvestNow

The best way to access the Squirrel Monthly Income Fund is by heading to InvestNow and investing through their online platform.

InvestNow is a New Zealand-based investment platform that provides online access to KiwiSaver, Managed Funds and Term Deposits from leading fund managers and banks from around the world.

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Features of the Squirrel Monthly Income Fund at a glance:

Investment Objective

The Official Cash Rate plus a margin of 4.00%p.a. after fees and before tax. (The Official Cash Rate is set by the Reserve Bank of New Zealand).

Income

Distributions are made once a month and can be paid to your bank account or reinvested.

Fees

0.65% p.a. incl GST management fee
This does not include the service margin deducted by Squirrel at the platform level.

Tax

PIE Tax (Portfolio Investment Entity)

Withdrawals

30 days notice, no withdrawal fee

Invests in

Loans to homeowners credit assessed and managed by Squirrel.

Investing into the Squirrel Monthly Income Fund is easy and 100% online.

First, have a read of our product disclosure statement. Then head over to InvestNow where you can open an account and find the Squirrel Monthly Income Fund to invest into.

Where is your money going when you invest in the Squirrel Monthly Income Fund? Three types of loans which are predominantly backed by residential property.

Home Loans

Residential mortgages up to $2 million for owner occupied or investment properties, secured by a first mortgage.

Maximum LVR 80%.

Find out more

Residential Construction Loans

Mortgages up to $2 million for residential house construction, for investors and small scale developers. Secured by first mortgages.

Maximum LVR 80%.

Find out more

Personal Loans

Consumer loans up to $120,000 for homeowners, for property related expenses. Loans over $20,000 are secured.

Find out more

Your investments are managed by the Squirrel team, and we're no spring chickens

Squirrel began as mortgage brokers in 2008. Since then we've arranged over $10 billion of mortgages, so it's fair to say we know property inside out. 

In 2015, our peer-to-peer lending platform was born

We decided there must be a better way for Kiwis to borrow, as well as earn better returns on investments in a low interest rate world, so peer-to-peer lending was a natural next step for us.

We only lend to homeowners, the market we know inside out, and we lend to market niches that are under served by banks. This means investors can earn an attractive return for the credit risk.

Find out more about the history of Squirrel

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Feet on hammock, relaxed

It's all about creating a regular income, without doing the work.

When you invest using the Squirrel Monthly Income Fund, you can sit back and leave the work to us. We lend only to homeowners and do our due diligence on every borrower that applies for a loan. We ensure they're creditworthy and that it's responsible to lend them money, and on top of that the Reserve Funds are there to help protect against any missed borrower payments.

Just watch your income roll in. And whenever you decide to get your money out, all you need to do is provide 30 days notice.

Got questions? We've answered some common ones below:

How does my investment work?

The Squirrel Monthly Income Fund is all about creating a regular income stream for you. We do this by investing into loans to New Zealand homeowners. The interest they pay on those loans creates the return for you. A small margin goes to Squirrel and in most cases a small amount goes towards the Reserve Funds.

The distributions will be paid on or around the 10th business day of each month, and you can choose to have this paid directly to your bank account or reinvested into the Fund.

How does my investment get taxed?

With this type of investment you'll pay PIE (Portfolio Investment Entity) based tax on your returns. The benefit of PIE tax is you can end up paying less tax on your returns compared with paying Resident Withholding tax. Most people have a Prescribed Investor Rate (PIR) of 10.5%, 17.5% or a maximum of 28% tax, under the PIE tax structure. To find out your PIR, head to the IRD website.

What's the difference between investing through the Squirrel Monthly Income Fund and investing directly with Squirrel?

The Squirrel Monthly Income Fund has a hands-off approach where you can 'set and forget' by letting Squirrel do the work of investing in various types of loans for you. You pay a fee of 0.65%p.a. (incl GST) for this service (not including the service margin deducted by Squirrel at the platform level) and your monthly distributions are automatically paid straight into your bank account like any other income (or reinvested into the fund if that's what you prefer).

Investing directly into the Squirrel market place means you create your account with Squirrel and manage your own investment, choosing your preferred risk and returns. This option puts you in the driver's seat and there is no management fee because you're managing it yourself. Your investment still generates a regular return which gets paid into your Squirrel account so it's up to you whether to withdraw it into your bank account or reinvest into the marketplace. Find out more about investing directly with Squirrel here

How is the risk managed?

Squirrel is the only lender in New Zealand to use a Reserve Fund model, which is there to help manage risk for investors. How it works is a portion of the interest paid by the borrower is deposited into the Reserve Fund, and there is a separate Reserve Fund for each loan type. The Reserve Funds are sitting inside a separate trust that aims to protect investors against any missed payments.

No Squirrel investor has had a missed payment to date*, and our intention is to keep it that way. You can find out more about how we manage risk here.

Haven't found the answer to your question? Get in touch

We're happy to chat. Give the friendly team a call or flick us an email and we'll get back to you.

*While no investor has lost a cent through Squirrel, past performance cannot guarantee the future. 

1 InvestNow Service: InvestNow holds a Financial Advice Provider Transitional Licence. InvestNow’s focus is on helping people and providing information, based upon understanding their objectives and level of knowledge. 

2 Implemented Investment Solutions: Implemented Investment Solutions Ltd is the issuer and manager of the Squirrel Monthly Fund Income. For a Product Disclosure Statement please visit www.iisolutions.co.nz or https://disclose-register.companiesoffice.govt.nz/. Past performance is not indicative of future performance. Investors are encouraged to seek independent financial advice.