replacement product disclosure statement · 2 | asset finance limited product disclosure statement....

Replacement Product Disclosure Statement

Dated 22 July 2020

This document gives you important information about this investment to help you decide whether you want

to invest. There is other useful information about this offer on www.assetfinance.co.nz. Asset Finance

Limited has prepared this document in accordance with the Financial Markets Conduct Act 2013.

You can also seek advice from a financial adviser to help you to make an investment decision.

Replacing Product Disclosure Statement dated 4th April 2019 for the offer of

Secured First-Ranking Debenture Stock by Asset Finance Limited

1. Key information summaryWhat is this?This is an offer of Secured First-Ranking Debenture Stock (“Secured Deposits”). Secured Deposits are debt securities issued by Asset Finance Limited (“Asset Finance”). You give Asset Finance money, and in return Asset Finance promises to pay you interest and repay the money at the end of the term. If Asset Finance runs into financial trouble, you might lose some or all of the money you invested.

About Asset Finance LimitedAsset Finance (Company number: 455363) is a medium sized company providing in niche lending markets. Asset Finance has been operating since 1997. Asset Finance is in the business of borrowing money from investors, and lending that money to borrowers at a higher rate. Asset Finance relies upon investments from the general public to fund the majority of its loan book. In March 2015, Asset Finance became licensed by the Reserve Bank of New Zealand as a non-bank deposit taker (“NBDT”).

On 25th April 2020 the ownership structure of Asset Finance Limited was reorganised, whereby a majority of the shareholders (98.98%) transferred their shareholding to a new holding company, Xceda Capital Group Limited. Subsequent to this restructure, on 11th May 2020 the largest shareholder in Asset Finance (Blackstar Finance Limited) was acquired by Clare Investment Management Pty Ltd, an Australian private company controlled by the current Asset Finance CEO Daniel McGrath. Blackstar Finance Limited was renamed Clare Investments NZ Limited. The Reserve Bank of New Zealand (“RBNZ”) gave consent for the restructure on 17th December 2019, and Covenant Trustee Services Ltd also gave its consent on 17th February 2020. The Board of Directors and the senior management team remain unchanged after the restructure.

Asset Finance continues its business activities as a Non-Bank Deposit Taker pursuant to this Replacement Product Disclosure Statement (as updated from time to time) (the “PDS”) and its Debenture Trust Deed dated 15 March 2004 as amended and restated on 3 December 2018 (the “Trust Deed”).

Key terms of the offerDescription of Secured Deposits The Secured Deposits are secured debt securities.

Term of Investment There are terms ranging from three months to five years available.

Interest Interest payable is available on Asset Finance’s website and is subject to change without notice. The interest rate will be confirmed to you by email or letter following its receipt of the application money.

Investors are entitled to choose from a range of payment options. These options include:

• Monthly Direct Credit• Quarterly Direct Credit• Quarterly Compounding

Interest is fixed for the term of the investment, and is calculated on a daily basis from the date Asset Finance receives the application money (subject to the clearance of those funds) and will be paid in accordance with the instructions specified in your application.

2 | Asset Finance Limited Product Disclosure Statement

Offer Dates The offer is available now. This is a continuous offer. There is no closing date.

Early Withdrawal Secured Deposits may be withdrawn prior to maturity in limited circumstances. Asset Finance is likely to charge an early withdrawal fee calculated on an adjusted interest rate. We may also repay you early. Please refer to Section 2 of this PDS for more information.

No guaranteeAsset Finance is solely responsible for repaying you.

The offer of Secured Deposits under this PDS and the returns payable thereon are not guaranteed by Asset Finance, the Supervisor, any shareholder of Asset Finance or any other person.

How you can get your money out earlyThere are a limited number of circumstances where Asset Finance will consider early repayment at the request of an investor. The circumstances under which early repayment of Secured Deposits may be considered are:

• Estates or trusts: where Secured Deposits form part of an estate or trust and the trustees wish to distribute the assets of the estate or trust (as the case may be);

• Hardship: where, due to unforeseen circumstances, an investor’s continued investment may give rise to some form of material hardship; and/or

• Terms of investment: where the terms, upon which the investment was accepted, so provide.

Where Asset Finance agrees to accept a request by an investor for the investment to be withdrawn prior to maturity for any reason, Asset Finance is likely to charge an early withdrawal fee calculated on an adjusted interest rate.

Asset Finance does not intend to quote these Secured Deposits on a market licensed in New Zealand and there is no other established market for trading them. This means you may not be able to sell your Secured Deposits before the end of their term.

At the discretion of Asset Finance, investors may transfer their Secured Deposits to a third party in multiples of $500. Asset Finance is of the opinion that there is currently no established market for transferring Secured Deposits. In the event that Asset Finance consents to the transfer of your investment, there will be minimal or no fees or charges payable by you to Asset Finance in respect of any such transfer.

How secured deposits rank for repaymentExcept as specifically provided for in the Trust Deed Asset Finance is prohibited from granting any security interests that rank ahead of, or equally with, the first interest given to Covenant Trustee Services Limited (as Supervisor) for the benefit of investors (see Section 4 “Ranking and Security” of this PDS).

On a liquidation of Asset Finance, your rights and claims under the Secured Deposits would rank:

• AFTER all creditors preferred by law and any permitted prior security interests;• EQUALLY with all other investors; and • AHEAD of any lesser ranking secured creditors and all unsecured creditors.

Asset Finance is permitted to grant a security interest prior to that given to the Supervisor when acquiring any asset provided that the amount borrowed or raised or owing and secured against that asset does not exceed 2% of Asset Finance’s Total Tangible Assets.

More information on the ranking of securities upon the event of liquidation of Asset Finance can be found in Section 4 of this PDS.

Asset Finance Limited Product Disclosure Statement | 3

What assets are these secured deposits secured against?Under the Trust Deed, Asset Finance has granted security interest to Covenant Trustee Services Limited as Supervisor, which secures its payment obligations under the Secured Deposits. The security interests are over all present and after-acquired personal property, and over real property and property other than personal property. More information on the ranking of securities upon the event of liquidation of Asset Finance can be found in Section 4 of this PDS.

Where you can find Asset Finance’s financial informationThe financial position and performance of Asset Finance are essential to an assessment of Asset Finance’s ability to meet its obligations under the Secured Deposit. You should also read Section 5 of this PDS.

Key risks affecting this investmentInvestments in debt securities have risks. A key risk is that Asset Finance does not meet its commitments to repay you or pay you interest (credit risk). Section 6 of the PDS (risks of investing) discusses the main factors that give rise to the risk. You should consider if the credit risk of these debt securities is suitable for you.

The interest rate for these Secured Deposits should also reflect the degree of credit risk. In general, higher returns are demanded by investors from businesses with higher risk of defaulting on their commitments. You need to decide whether the offer is fair. Asset Finance considers that the most significant risk factors are:

Funding and liquidity riskIf a significant number of investors do not reinvest their deposit upon maturity at or around the same time, Asset Finance may not be able to raise enough cash to repay investors. This is of particular significance to Asset Finance as it has a large number of retiree investors who may discontinue to reinvest in Asset Finance due to other financial needs or lifestyle changes.

Loan default riskIf a significant number of borrowers defaulted on their obligations at around the same time, there may be insufficient funds to fully repay Asset Finance’s investors, or it could trigger a default under the Trust Deed due to insufficient capital.

Computer system riskAsset Finance’s operations are administered using a computer system specifically designed for its type of business. If Asset Finance’s computer system fails, Asset Finance may be unable to operate, meaning that Secured Deposits may not be repaid in time to investors.

Key person riskOf its 16 staff, Asset Finance is particularly reliant upon three key people at its head office for its day to day operation. Asset Finance is further reliant upon two people for month to month and longer-term operation. The loss of two or more key people would have significant impact on its business, and it would urgently need to find replacements for the key staff members lost.

This summary does not cover all of the risks of investing in Secured Deposits. You should also read Section 6 of this PDS.


What is Asset Finance’s credit rating?Asset Finance has a long term counterparty credit rating of B- / Negative / B. A credit rating is an independent opinion of the capability and willingness of an entity to repay its debts (in other words, its creditworthiness). It is not a guarantee that the financial product being offered is a safe investment. A credit rating should be considered alongside all other relevant information when making an investment decision.

Asset Finance has been rated by Standard & Poor’s (Australia) Pty Limited (“S&P”). S&P gives ratings from AAA through to CC. A copy of Asset Finance’s most recent credit rating report from S&P is available on Asset Finance’s website.

Strength S&P Scale Approx. Probability of default over five years

Capa

city

to m

ake

timel

y pa

ymen

t Extremely Strong AAA 1 in 600

Very Strong AA 1 in 300

Strong A 1 in 150

Adequate BBB 1 in 30

Vuln

erab

ility

to

non

paym

ent

Less Vulnerable BB 1 in 10

More Vulnerable B 1 in 5

Currently Vulnerable CCC 1 in 2

Currently Highly Vulnerable CC 1 in 2

Default D


ContentsSECTION PAGE

1. Key information summary 2

2. Terms of the offer 8

3. Asset Finance and what it does 11

4. Key features of secured deposits 16

5. Asset Finance’s financial information 17

6. Risks of investing 19

7. Tax 24

8. Who is involved? 25

9. How to complain 26

10. Where you can find more information 27

11. How to apply 27

12. Contact information 27


Letter from the CEO of Asset Finance

Asset Finance Limited is a finance company that has grown from a small local business incorporated in 1989 to a nation-wide company now employing 16 staff, with a branch network of six offices and a total loan book over $25m.

Over the past 20 years we have built a strong foundation of investors, some of whom have entrusted us with their money since we issued our first Prospectus. Most of our investors are ordinary New Zealanders seeking better returns than banks are offering. Many of our investors rely on their investment with us to supplement their income, or to grow their nest egg by compounding their interest. We accept term deposits from the general public as the main funding source for our lending business, which is how we generate revenue.

Asset Finance is committed to providing short- and medium-term financial products and services that help New Zealanders and their businesses achieve their goals. We aim to provide a quality investment and lending service that is affordable, friendly, and personalised to the individual customer. We make extra efforts to ensure our processes are simple and convenient for our customers. We’re proud to have survived turbulent events such as the global financial crisis, and to be continuing to assist businesses and individuals across the country to achieve their own goals.

During the past six years there has been constant change in the financial services industry. Key legislation governing all aspects of our day-to-day operations has been introduced to safeguard the interests of investors. The changes culminated in Asset Finance becoming licensed as a Non-bank deposit taker (NBDT) by the Reserve Bank of New Zealand in March 2015, and the creation of this PDS pursuant to the Financial Markets Conduct Act 2013.

Since becoming a Non-bank Deposit Taker Asset Finance has experienced continued growth and profitability, reflecting the interest margins that are achieved through our personal and commercial lending products. We have consistently invested in maintaining strict corporate governance and compliance procedures.

Our profitability, dedicated staff, experienced independent governance on our Board, and strong capital base put us in a good position to take advantage of opportunities that arise. I’m proud to say the company is stronger now than at any time during our almost 30-year history.

If you have any questions, please don’t hesitate to contact Asset Finance or me personally. We are happy to talk with you about what we do so you can make an informed decision.

Daniel McGrath Chief Executive Officer


2. Terms of the offerTerms of the offer

Description of Secured Deposits The Secured Deposits are secured debt securities.

Term There are terms ranging from three months to five years available.

Investments will attract a fixed rate of interest the amount of which depends upon the length of term invested. The interest rates received on Secured Deposits are fixed and will not be varied until the end of the relevant term.

Interest rates The interest rate is available on Asset Finance’s website and is subject to change without notice. The interest rate will be advised by the company prior to investment.

Asset Finance sets interest rates based on its own liquidity needs. For terms of longer than 12 months, its interest rates are usually between 1 – 3% p.a. higher than interest rates offered by major trading banks, with the margin increasing as the investment term increases.

Interest payments Investors are entitled to choose from a range of payment options as detailed below:

Monthly Direct Credit: If you select ‘Monthly Direct Credit’ on the application form, the net interest earned on your investment will be direct credited as cleared funds to the bank or financial institution account specified in the application form on a monthly basis; or

Quarterly Direct Credit: If you select ‘Quarterly Direct Credit’ on the application form, the net interest earned on your investment will be direct credited as cleared funds to the bank or financial institution account specified in the application form on a quarterly basis; or

Quarterly Compounding: If you select ‘Quarterly Compounding’ on the application form, the net interest earned on your investment will be automatically reinvested on a quarterly basis. You will then earn interest on interest.

Interest is calculated on a daily basis from the date Asset Finance receives the application money (subject to the clearance of those funds) and will be paid in accordance with the instructions specified in your application.

If you choose to have interest paid or compounded quarterly, it will be done on the last working day of March, June, September and December of each relevant year. If you choose to have interest paid monthly, it will be done on the last working day of each relevant month.

Offer opening and closing dates

The offer is currently open. This is a continuous offer. There is no closing date.


Ranking of Secured Deposits on liquidation

On a liquidation of Asset Finance, your rights and claims under the Secured Deposits:

• Would rank after the Trustee’s costs, charges, expenses and liabilities, and all of its remuneration together with interest, and all claims given priority by operation of law and the Trust Deed;

• Would rank equally with all other holders of Secured Deposits, including those who invested pursuant to an earlier or later prospectus and investment statements; and

• Would rank ahead of any lesser ranking secured creditors (at the date of this PDS there are none), and all unsecured creditors.

Minimum investment amount

The minimum subscription amount which must be paid by you is $500.

However, a higher amount may be required to be eligible for particular account options, terms or rates.

Early repayment Asset Finance relies on committed Secured Deposits to properly plan its business, and for this reason will only agree to early repayment at the request of an investor in limited circumstances. The circumstances under which early repayment may be considered are:

• Estates or Trusts: where Secured Deposits form part of an estate or trust and the trustees wish to distribute the assets of the estate or trust (as the case may be);

• Hardship: where, due to unforeseen circumstances, an investor’s continued investment may give rise to some form of material hardship; and/or

• Terms of investment: where the terms, upon which the investment was accepted, so provide.

If Asset Finance agrees to accept a request by an investor for the investment to be withdrawn prior to maturity for any reason, Asset Finance is likely to charge an early withdrawal fee calculated on an adjusted interest rate. This calculation will depend on the timing and circumstance of the withdrawal.

Asset Finance also has the right to repay investors early. Asset Finance may without the approval of investors, upon giving at least fourteen (14) days’ notice in writing of its intention to the Trustee and all investors, repay all Secured Deposits (including accrued interest), whether or not due for repayment.

At the discretion of Asset Finance, investors may transfer their Secured Deposits to a third party in multiples of $500. Asset Finance is of the opinion that there is currently no established market for transferring Secured Deposits. In the event that Asset Finance consents to the transfer of your investment, there are not likely to be any material fees or charges payable by you in respect of any such transfer.


Trust DeedAsset Finance entered into a Debenture Trust Deed with Covenant Trustee Services Limited, as supervisor, on 15 March 2004, which was amended on 1 December 2010, 11 September 2012, 21 October 2016 and 3 December 2018 in relation to the Secured Deposits (the “Trust Deed”). A copy of the Trust Deed may be obtained from the Disclose register at: https://disclose-register.companiesoffice.govt.nz.

Interest rate and comparisonAsset Finance sets interest rates based on its own liquidity needs, having reference to current interest rates offered by the five major trading banks and other Non-bank deposit takers. For terms of longer than 12 months, Asset Finance’s interest rates are usually between 1 – 3% p.a. higher than interest rates offered by major trading banks, with the margin increasing as the investment term increases.

The diagram below demonstrates the interest rates payable on the Secured Deposits for terms ranging from nine (9) months to five (5) years. The interest rates are compared with the following in relation to each of the terms noted in the diagram below:

• Banks – the average interest rate offered by the five largest New Zealand retail banks. • Finance companies – other than as noted below, the average interest rate offered by the seven finance

companies listed on interest.co.nz with a credit rating up to BB+, or with no credit rating.• Asset Finance – the publicly available interest rates it is offering at the date of this document.

If multiple rates are offered, Asset Finance has used the highest publicly available rate for investments of $50,000 or less. Rates are as published at 3:05pm 22 January 2020 on http://www.interest.co.nz/saving/term-deposits-1-to-5-years.

The five banks whose interest rates Asset Finance has used in the graph below have credit ratings between A+ and AA-. Of the seven finance companies Asset Finance used, five have no credit rating, one has a rating of B and one has a rating of BB. Asset Finance has a rating of B- / Negative / B.

Asset Finance excluded one finance company from the comparison because they are a registered charity who offers returns significantly lower than their credit rating of B+ suggests they should. They are likely to attract investors who are willing to accept lower returns due to the charitable status of the organisation.

Comparison of Interest Rates as at 22 January 2020

6.00

5.00

4.00

3.00

2.00

1.00

0.00

12 months

Banks

Interest rate

% p.a.

Investment term

18 months 2 years 3 years 4 years 5 years

Finance Companies

Asset Finance Ltd


3. Asset Finance and what it doesOverview of Asset FinanceAsset Finance LimitedAsset Finance is in the business of borrowing money from investors, and lending that money to borrowers at a higher rate since 1997.

Asset Finance is a medium sized company providing finance in niche lending markets. It relies upon investments from the general public to fund the majority of Asset Finance’s loan book. Asset Finance employs 14 people full time; two part time, nine of whom are based at head office in Whakatane, New Zealand. Head office is where most administrative functions including loan payouts and investment deposits are managed. In addition to head office, it has a small network of Asset Finance branded offices and non-branded lending agencies located throughout New Zealand, mainly in the North Island. The purpose of the branch network is to facilitate new lending and provide better service to existing loan customers.

Asset Finance attracts new investors by advertising in printed mediums and online, or by referrals from existing investors. All investment enquiries are directed to a small team at head office. Asset Finance sources loans by advertising in a range of media, with loan enquiries directed to the customer’s nearest branch office.

Asset Finance’s operations and activities

Loan approval processThe assessment of any loan advance starts with some form of application or proposal. This provides details of the requested loan or facility amount, the borrower, guarantor, the security and the repayments. If the application or proposal is reasonable the next step is to assess the security together with the borrower’s income, affordability and cash flow. If the proposal still checks out, credit checks are performed on the customers and the security.

Once Asset Finance has all of the information, a decision can be made on whether to approve a loan facility to this customer, and if so, whether the full amount can be approved and under what terms. Approval authority is delegated based on the size of the loan exposure. There are multiple tiers but all loan exposures of $10,000 or more must be approved by two individuals, and Board approval is required for any exposure over 10% of Equity. Many loan enquiries are rejected prior to application, usually due to insufficient security. Of the applications that are submitted to Asset Finance, around 50% are approved. Many applications that are approved are approved for a reduced amount compared to what was originally requested.

Any request for a top-up or refinance is treated in a similar fashion, but Asset Finance places more reliance upon repayment history and this history can often be used in lieu of a new credit check. It can also usually re-use existing securities thereby saving costs (e.g. PPSR lodgement costs, caveat or mortgage registration costs, etc) as set out below.

Loan Top-Ups and Repeat CustomersLoan top-ups are an integral part of Asset Finance’s business, and it has simplified processes in place to make the approval of loans to existing and past clients as straightforward as possible.

These processes may include any of the following measures as Asset Finance sees fit:

• Reduced interest rate because it perceives the client as reduced risk due to their payment history; and• No updated credit check because it is satisfied the client honours their commitments; and• Reliance upon information previously obtained such as bank statements, collateral verification and

valuation information; and• An establishment fee credit in part to reflect the slightly reduced effort on Asset Finance’s part, but mainly

as another way of showing it values the client.


Asset Finance’s Loan bookThe table below shows the types of products Asset Finance lends to borrowers as at 30th September 2019.

Category Description of category

Consumer Loan This category consists of loans Asset Finance has provided to an individual for consumer purposes. Typical of Asset Finance’s consumer lending is a loan for less than $10,000 for a term of two to three years, secured by a car or house. Amounts up to $5,000 can be lent unsecured, but unsecured lending accounts for less than 2% of Asset Finance’s total tangible assets.

Business Finance This category is made up of any loan or credit facility Asset Finance has provided for business or investment purposes. Whilst there is a broad range of lending in terms of size and term of loan, a typical business facility would be a loan from $20,000 to $250,000 for a term of up to five years secured by machinery and/or land and/or buildings, or a factoring facility of a similar size but secured by the company’s accounts receivable and guarantees.

Managed by a Third Party

This category consists of new or existing loan or credit facilities between a third party and the client which Asset Finance has taken assignment of. While Asset Finance funds the facility, the third party is responsible for performing several aspects of approval assessment and for managing the day to day operation. Security arrangements are in place and the third party is guarantor to each facility. All exposures currently in this category would fall under the ‘Business Facility’ heading if Asset Finance was managing the facility directly itself.

The first table below breaks Asset Finance’s loans down to consumer loans, business finance, and loans managed by a third party, showing the average exposure that Asset Finance has to each category of lending and also the average loan term.

The second table breaks Asset Finance’s loans down to the different types of securities its loans are held over and shows the average exposure that Asset Finance have under each category of security.

The third and fourth tables show Asset Finance’s loans according to the regions the borrowers reside in, then loans primarily operating in New Zealand and loans primarily operating in Australia.

Breakdown of Loan book by product category as at 30th September 2019

Consumer Loans Business Finance Managed by a Third Party

Total exposure $8,600,894 $11,083,106 $1,503,414

% of Total Tangible Assets 32.97% 42.48% 5.76%

Average exposure $5,006 $68,414 $57,824

Average exposure of top 10 $147,071 $601,329 $124,606

Weighted average loan term 48.5 months 22.0 months Not applicable

Number of loans 1,719 162 26


Breakdown of Loan book by collateral as at 30th September 2019

Car, Truck or Motor Vehicle

Home or Land First Charge

Home or Land Second Charge

Machinery & Equipment

Accounts Receivable

Unsecured Other

Total exposure $5.882m $6.209m $3.708m $0.623m $2.032m $0.656m $2.076m

% of Total Tangible Assets

22.55% 23.80% 14.22% 2.39% 7.79% 2.51% 7.96%

Average exposure

$5,197 $258,702 $22,480 $44,472 $65,543 $1,868 $10,930

Average exposure of top 10

$84,355 $546,955 $143,610 $57,019 $165,650 $4,003 $91,303

Some of the security provided for Asset Finance’s loans is unique in nature and accordingly carries greater credit risk as the ability to sell the assets may be limited by the size of the market. Asset Finance obtains specialist valuations of unique securities, and these are updated on a periodic basis.

Breakdown of Business and Consumer loans by regionBoth consumer loans and business loans are well represented throughout the country, although Asset Finance has comparatively less consumer activity in the South Island. This geographical spread avoids undue reliance on any particular region of the country.

Region Business Loans Consumer Loans 3rd Party Loans

$ % loan book

$ % loan book

$ % loan book

Auckland & Northland $5,865,418 27.7% $2,807,543 13.3% $1,313,567 6.2%

Waikato & Bay of Plenty $2,675,133 12.6% $2,761,569 13.0% $185,930 0.9%

Central & Lower North Island

$1,820,776 8.6% $2,530,649 11.9% $11 0.0%

South Island $721,779 3.4% $453,854 2.1% $3,905 0.0%

Overseas $47,279 0.2%

Total $11,583,106 52.3% $8,600,894 40.6% $1,503,413 7.10%

Breakdown of Loan book by Jurisdiction

New Zealand Australia (NZ $)

Total exposure $21,140,136 $47,279

% of Total Tangible Assets 81.03% 0.18%

Average exposure $11,091 $47,279

Average exposure of top 10 $621,550 $47,279


All figures are listed in New Zealand dollars.

Action taken against defaulting loansThe software system Asset Finance uses was developed in New Zealand and tailored to suit Asset Finance’s business. After importing bank transactions each business day, the software automatically identifies accounts that are past due one day or more. When payments are missed Asset Finance can send a letter, make a phone call or send a text message. The severity of Asset Finance’s action is determined primarily by how far past due an account is and the type of security Asset Finance has.

Asset Finance’s first and preferred option is always for the client to pay the arrears or enter into a suitable arrangement to pay the arrears over a reasonable time-frame. However, if a client chooses to ignore the problem or is unable to make a suitable payment arrangement, Asset Finance is forced to act upon security it has over any assets pledged as collateral. In the case of motor vehicles or machinery, this action can happen quickly. A typical motor vehicle sale takes from between two and three months to complete. It can take significantly longer to sell real estate, with the process often taking up to a year. Delays can occur if the property owner can’t be served with the required documents, if Asset Finance enters into a payment arrangement that is subsequently not kept or if the property doesn’t attract a reasonable sale price at first attempt.

Bad Loan Write offsOnce all security options have been exhausted, if the client is not paying the loan then the balance is written off as a bad debt.

Even once a loan is written off, efforts are still made to recover the funds. Loans that are written off due to being assessed as having a low likelihood of collection are sent to a debt collection agency for collection. In the six months ended 30 September 2019 Asset Finance recovered $38,821 of bad debts previously written off (30 September 2018: $53,615).

The industry in which Asset Finance operatesAsset Finance has been offering fixed term deposits to the public since 2004, and anyone in New Zealand and Australia can invest with the company. Asset Finance is classified as a non-bank deposit taker and is licensed under the Non-bank Deposit Takers Act 2013. Asset Finance is part of the financial services industry and operate alongside banks and non-bank deposit takers which issue term deposits.

Asset Finance’s main competition for lending is credit unions and other finance companies. It can’t usually compete on price with banks, so the majority of Asset Finance’s lending is either to customers that would not currently qualify for bank lending, or is in niches in which banks do not operate or do not target. Some of Asset Finance’s customers would qualify for a bank loan but prefer to avoid the complicated process, or feel threatened approaching their bank. Many of Asset Finance’s customers use the company for short term bridging financing, then later refinance with a bank.

While there are similarities between Asset Finance and a bank, Asset Finance is very different from a bank. A bank makes money by lending a large number of people large amounts and charging a smaller interest margin over a long period. In contrast, Asset Finance makes money by charging a much smaller number of people a higher margin over a shorter period.

Keys to generating incomeAsset Finance’s key source of income is the loan receivables and interest rate margins generated by lending money to its borrowers. Asset Finance also generates income from fees and charges for default payments, early termination (for borrowers), and early repayment (for investors).


About Asset Finance’s Board and Senior ManagementAsset Finance is governed by a board consisting of four (4) directors, three (3) of whom are independent and one (1) Managing Director.

John Whittfield - Independent ChairmanJohn is currently Managing Director of Corporate Solutions and Management Limited, a company that primarily operates in the field of business recovery. Prior to the formation of this company he was managing partner of McDonald Vague (Auckland) from 2005 -2010 where he had been a partner since 2002.

Before taking up the position at Mc Donald Vague, John had held a significant number of directorships in the dairy industry and had been involved in the process of mergers and acquisitions that lead to the formation of Fonterra.

John has also taken directorships to assist and facilitate the sale of company assets or amalgamation of trading entities.

Scott Weenink (BA/LLB, Mstud (Oxon)) – Independent DirectorScott joined the Board on 11 December 2018. He has a background as an M&A and corporate finance lawyer, has broad governance experience and his current board roles include Modica Group (a global enterprise messaging provider), Generate KiwiSaver Funds Management (a KiwiSaver funds manger), Enable Networks (a Ultra Fast Broadband provider) and also the New Zealand Cricket Players Association. Scott has also previously held directorships in the telecommunications industry in Asia and the airport industry in New Zealand and Australia.

Scott, who is admitted to the Bar in NZ, UK and NSW, has a Masters in Law from Oxford University.

Bryan Heapy – Independent DirectorBryan has 25 years’ experience in the finance and business banking industry, and he has held several senior positions in a variety of leading financial institutions. These positions have covered a spectrum of roles, including client relationship management, lending, credit, and regional management.

These roles have exposed Bryan to a broad range of industry sectors including finance, manufacturing, fishing, tourism, commercial property, vehicle retailing, heavy equipment and civil engineering.

In recent years Bryan has been an executive of one of NZ’s largest private companies. More recently he has been CEO of Admark Visual Imaging Ltd, a significant printing company; and Manager of Precision Component Machining Ltd, an engineering company based in Hamilton.

Daniel McGrath (BA/LLB, MA (Cantab) – Chief Executive Officer and Managing DirectorDaniel was appointed a Director on 16th August 2018. He was then appointed Managing Director and Chief Executive Officer on 1st April 2019, replacing former Chief Executive Officer Paul Elliott who resigned effective 1st April 2019.

Daniel has extensive experience in senior management positions, having worked as a solicitor for major international law firms Freshfields Bruckhaus Deringer LLP and Shearman & Sterling LLP, representing banks, private equity firms and global corporations. Daniel was also Senior Legal Counsel for ASX-listed Challenger Financial Services Group Ltd, advising on acquisitions and divestments for the Challenger’s funds management group.

Daniel holds a BA/LLB from Queensland University of Technology and an MA from Cambridge University.


4. Key features of secured deposits

Ranking and securityThe Secured Deposits are secured by a security interest which Asset Finance has granted under the terms of the Trust Deed over all of Asset Finance’s assets to Covenant Trustee Services Limited as supervisor. Except for prior security interests totalling no more than 2% of total tangible assets, the Trust Deed prohibits us from granting any security interests that rank ahead of, or equally with, the first interest given to Covenant Trustee Services Limited for the benefit of investors under the Trust Deed in relation to Secured Deposits.

As at the date of this PDS, there were no outstanding prior security interests that had been granted by us. The only interests that rank ahead of the first interest given to Covenant Trustee Services Limited are those given preference by law such as PAYE and RWT.

The secured debenture stock deposits totalling $20,372,298 as at 30 September 2019 are secured by security interest in favour of Covenant Trustee Services Limited over all of Asset Finance’s present and after acquired personal property, and rank ahead of the other secured liabilities (other than permitted prior security interests and claims given preference by law, such as outstanding taxes and payments to employees). The total value of Asset Finance’s assets that are subject to the security interest in favour of Covenant Trustee Services Limited is $26,884,319 as at 30 September 2019.

Asset Finance is permitted under the Trust Deed to create security interests over its assets which rank in priority to the security interests granted in favour of Covenant Trustee Services Limited under the Trust Deed to secure any borrowing or money owed in purchasing or acquiring assets, provided that the amount secured by all prior ranking security interests does not exceed 2% of Asset Finance’s total tangible assets.

The diagram below illustrates the ranking of the Secured Deposits on Asset Finance’s liquidation and is based on $20,372,298 of Secured Deposits being in issue, being the number of Secured Deposits issued by Asset Finance as at 30 September 2019.

Ranking on liquidation of Asset Finance

Examples Indicative amount as at 30 September 2019

Higher ranking/ earlier priority

Liabilities that rank in priority to the Secured Deposits

Creditors preferred by law and any permitted prior ranking security interests

$464,839

Liabilities that rank equally with the Secured Deposits

Secured Deposits, including the accrued interest

$20,372,298

Lower ranking/ later priority

Liabilities that rank below the Secured Deposits

Lesser ranking secured creditors and unsecured creditors

$357,259

Equity Distribution of surplus assets $6,154,782

GuaranteesAsset Finance is solely responsible for repaying you.

The offer of Secured Deposits under this PDS and the returns payable thereon are not guaranteed by Asset Finance, the Supervisor, and any shareholder of Asset Finance or any other person.


5. Asset Finance’s financial information

Asset Finance is required by law and its Trust Deed to meet certain financial requirements. This table shows how Asset Finance is currently meeting those requirements. These are minimum requirements and meeting them does not necessarily mean that Asset Finance is safe or secure. The section on specific risks relating to Asset Finance’s creditworthiness sets out risk factors that could cause its financial position to deteriorate. The offer register provides a breakdown of how the figures in this table are calculated, as well as full financial statements.

Key ratios

Key Ratio 30/09/2019 30/09/2018 30/09/2017

Capital ratio 15.75% 17.66% 17.99%

Minimum capital ratio (under the Trust Deed)

10% 8% 8%

Minimum capital ratio (under the 2010 regulations)*

8% 8% 8%

The capital ratio is a measure of the extent to which Asset Finance is able to absorb losses without becoming insolvent. The lower the capital ratio, the fewer financial assets Asset Finance has to absorb unexpected losses arising out of its business activities.

The Minimum capital ratio under the Trust Deed has increased from 8% to 10% from 1 September 2018.

Aggregate exposures to related parties

0% 0% 0%

Maximum limit to aggregate exposures to related parties (under the Trust Deed)

15% 15% 15%

Maximum limit to aggregate exposures to related parties (under the 2010 Regulations)*

15% 15% 15%

Related party exposures are financial exposures that Asset Finance has to related parties. A related party is an entity that is related to Asset Finance through common control or some other connection that may give the party influence over Asset Finance (or Asset Finance over the related party). These related parties include directors of Asset Finance. The maximum limit to aggregate exposure to related parties under the Trust Deed is 5%.

Liquidity calculated in accordance with the quantitative liquidity requirements under the Trust Deed

October: $4.860m

November: $4,802m

December: $4,624m

October: $5.188m

November: $5.371m

December: $5.238m

October: $7.018m

November: $7.097m

December: $6.875m

Minimum liquidity requirements required under the Trust Deed

Asset Finance’s projected Liquidity Position must be positive for each of the first three months of each of its monthly Liquidity Report.


Liquidity requirements help to ensure that Asset Finance has sufficient realisable assets on hand to pay its debts as they become due in the ordinary course of business. Failure to comply with liquidity requirements may mean that Asset Finance is unable to repay investors on time and may indicate other financial problems in its business.

Selected financial information

Period Six months to 30/09/19 Six months to 30/09/18 Six months to 30/09/17

Total assets as determined in accordance with GAAP

$27,349,158 $26,058,650 $27,069,405

Total liabilities as determined in accordance with GAAP

$21,194,376 $20,069,418 $20,993,458

Net Profit after Tax as determined in accordance with GAAP

$419,630 $274,582 $844,700

Net Cash Flows from Operating Activities as determined in accordance with GAAP

$(507,827) ($3,809,635) $2,668,258

Cash and cash equivalents as determined in accordance with GAAP

$4,548,826 $4,946,045 $6,949,328

Capital as calculated in accordance with the 2010 regulations*

$4,895,600 $5,989,231 $5,450,671

*”the 2010 regulations” means the Deposit Takers (Credit Ratings, Capital Ratios, and Related Party Exposures) Regulations 2010.

Other limitations, restrictions and prohibitionsFinancial restrictionsThe Debenture Trust Deed with Covenant Trustee Services Limited requires that Asset Finance do not:

• Where the Total Tangible Assets are less than $10,000,000, permit the Total Liabilities to exceed 85% of the Total Tangible Assets;

• Where the Total Tangible Assets are $10,000,000 or more but less than $20,000,000, permit the Total Liabilities to exceed 87% of the Total Tangible Assets;

• Where the Total Tangible Assets are $20,000,000 or more, permit the Total Liabilities to exceed 90% of the Total Tangible Assets; and

• Borrow on the security of a security interest that ranks in priority to that granted to Covenant Trustee Services Limited under the Debenture Trust Deed that exceeds 2% of the value of Asset Finance’s total tangible assets.

• Allow the Capital Ratio to be less than 10%. The Capital Ratio is the ratio, expressed as a percentage, of the Company’s capital to an amount representing the degree of risk to which the Company is exposed.

Other restrictionsFor further details regarding other limitations, restrictions and prohibitions on Asset Finance, refer to the Trust Deed on the offer register at https://disclose-register.companiesoffice.govt.nz.


6. Risks of investingGeneral risksYour investment is subject to the risk that Asset Finance becomes insolvent and as a result cannot repay your investment or the interest it has earned. Additional risk is that should you wish to sell your investment prior to its maturity you are unable to find a buyer or realise the amount you paid for the deposit. There is currently no established market available to trade such investments.

In addition to the general risks associated with any investment securities of this nature, there are numerous factors relevant to the Secured Deposits and to Asset Finance, which may impact on the Secured Deposits. Details of these specific risks are provided in the section below.

Specific risks relating to Asset Finance’s creditworthinessFunding and liquidity risk The typical investor in Asset Finance Secured Deposits is likely to be retired. The average amount invested in Asset Finance is approximately $32,000 but investments range from small amounts to almost a million dollars.

Description of circumstanceLiquidity risk is the risk that Asset Finance is not able to raise enough cash to repay investors upon maturity, particularly where a significant number of investors do not reinvest their deposit upon maturity.

Why circumstance is of significanceA significant number of Asset Finance investors are retirees who may discontinue to reinvest in Asset Finance upon maturity due to personal financial situation, other financial commitments, significant lifestyle changes or death. If this group of investors were to cease investing with Asset Finance it would find lending severely constrained. Any reduction in lending affects Asset Finance’s profitability. Moreover, if investors do not reinvest upon maturity, and if a significant number of them mature around the same time, Asset Finance may not have sufficient cash on hand to pay them all or to pay interest and other returns due to investors.

Likelihood of impactAsset Finance has enjoyed high rates of reinvestment in the past and have a spread across all regions in New Zealand and some from overseas. It also takes care to match deposit maturity dates with lending terms so that it can avoid spikes in maturing deposits.

A large proportion of investors choose to reinvest on the maturity of their existing stock. In the year to 30 September 2019 the rate of reinvestment was 76.72%. Asset Finance’s investor base is fairly well diversified geographically, although it has more investors from the Bay of Plenty and Waikato regions which is traditional to Asset Finance and not surprising given the Company’s origins.

The five largest individual investments in Asset Finance as at 30 September 2019 as follows:

Amount invested Percentage of all investments

$524,607 2.6%

$522,989 2.6%

$320,258 1.6%

$299,128 1.5%

$277,655 1.4%

$1,944,637 9.5%


Geographically, the spread of investors as at 30 September 2019 was as follows:

Region Amount Percentage

Auckland and Northland $5,979,840 29.4%

Waikato $3,621,072 17.8%

Bay of Plenty $2,815,094 13.8%

Central and Lower North Island $2,886,607 14.2%

South Island $3,099,946 15.2%

Overseas $1,969,742 9.7%

Total 20,372,301 100.0

Therefore, Asset Finance considers the likelihood of a liquidity risk is currently low.

Nature of ImpactAsset Finance would have less money to lend and would face offering higher rates to new investors to attract funds.

Potential Magnitude of ImpactAsset Finance considers that the impact of a severe fall in the number of investors and amount of investment in Secured Deposits will be significant but the effect would be felt in its ability to lend rather than to repay Secured Deposits as they mature. Asset Finance also seeks longer term deposits (the average term being in excess of three years) and by monitoring investments closely it can see any pattern in falling investments very early.

Asset Finance also actively manages its liquidity risk by adhering to its Risk Management Policy. This is reported on and discussed at every Board meeting, considering the level of accounts maturing across months ahead and the alignment of maturing loans and the cash flows relating to those activities.

Loan default riskThe Asset Finance mix of borrowers, in terms of both geographical spread and type (consumer, business), and amounts borrowed also vary greatly, from a few hundred dollars to several hundred thousand dollars. The mix of consumer loans, business loans and third party lending is shown in the table on page 12.

For consumer loans up to $5,000 Asset Finance may lend on an unsecured basis. For larger loans, whether consumer or business, security will be required. Typically, this will be real estate but also includes motor vehicles and business assets. The table on page 13 shows the make-up of the loan book according to the type of security held.

Business loans carry more risk to Asset Finance, in that there are fewer loans for mostly large amounts, the average loan balance being in excess of $78,000. However, all are secured, and its credit policy and management are such that care is taken to mitigate potential losses.

Asset Finance operates in a competitive landscape, with a number of companies offering similar loan products. Borrowers very often choose to borrow from Asset Finance again and again, demonstrating that very often after shopping around and comparing interest rates and fees they stay with the lender they have grown to have confidence in. Asset Finance’s rates and fees are comparable to most other companies. A risk is that one or more competitors reduce their charges significantly. Although Asset Finance does not see large reductions as being likely it would need to respond and potentially reduce Asset Finance’s rates to remain competitive.


Some of Asset Finance’s competitors also seek funding from the public in the way that Asset Finance does, often offering shorter term arrangements. Asset Finance tends to seek longer term investments in order to best manage funding requirements with a balance of affordability and sustainability. That is, Asset Finance and its investors tend to prefer the security of medium to longer term deposits and certainty as to rates.

Description of circumstanceBorrower risk is where borrowers are unable to meet their repayment obligations and where Asset Finance holds security that proves inadequate.

Why circumstance is of significanceAsset Finance has a broad mix of borrowers, representing its lending to consumer and business borrowers. The ten largest borrowers account for $6.4 million of loans, being 29.3% of the loan book and 24.4% of Total Tangible Assets. If they, or a large number of smaller but significant loans were to fail and security was inadequate to cover losses the impact would be significant in their effect on profitability.

Likelihood of impactAsset Finance monitors the performance of loans closely, reporting at each Board meeting those in arrears and the actions being taken to manage the accounts and recover through security if necessary. Asset Finance’s lending is spread across New Zealand and in a number of industries. It lends to a broad range of borrowers in respect of age, occupation and reasons for borrowing. The ten largest borrowers in Asset Finance as at 30th September 2019 are as follows:

Total exposure Percentage of Total Tangible Assets

$2,449,363.97 9.4%

$766,699.25 2.9%

$499,088.10 1.9%

$464,996.56 1.8%

$463,306.09 1.8%

$432,197.92 1.7%

$396,295.81 1.5%

$356,449.43 1.4%

$265,555.66 1.0%

$261,125.01 1.0%

$6,355,077.80 24.4%

The table above includes a loan with a carrying value of $2.55m, which is secured by way of first mortgage over land.

Nature of impactAsset Finance would face losses through loan defaults and inadequate security and have less money to lend and with which to repay deposits.

Potential magnitude of impactAsset Finance considers the impact of a number of Asset Finance’s largest loans to default to be significant. The effect is likely to be on Asset Finance’s ability to lend but could also affect Asset Finance’s ability to repay investors.


To mitigate the potential for large losses Asset Finance exercises close management over loans falling into arrears, including formally reporting their status at Board meetings, and where it becomes necessary it moves quickly to recover those loans and contain losses through security.

Operational risk

Computer systemsAsset Finance’s operations are administered using a computer system specifically designed for its type of business. The system also manages the investor information that it holds as well as being the core data collection system for financial information excluding payroll, which has a separate standalone system.

Description of circumstanceThis is where Asset Finance’s computer network or the applications it uses to administer lending, deposit taking and accounting fail.

Why the circumstance is of significance

Without the computer systems functioning, Asset Finance is unable to operate, no loans could be made, and deposits would be unable to be repaid.

Likelihood of impactAsset Finance’s computer systems and applications are protected by appropriate service plans which hold the primary objective of restoring service as quickly as possible. The loan system, payroll and other applications are backed up daily, with backups stored offsite. The systems are considered robust and are fully supported by appropriate service plans. Should computer systems or applications fail, or there is a physical event that damages Asset Finance’s IT network, Asset Finance can expect to restore capability within two days by operating from an alternative site if necessary and with backups that have been made daily. The robustness and capability of the computer systems and applications Asset Finance uses are part of regular reporting to the Board in order to help management of the risk.

Therefore, Asset Finance considers the likelihood of a computer systems risk is currently low.

Nature of impactAsset Finance would be unable to operate until systems were restored or replacement systems were available and operating.

Potential magnitude of ImpactThe impact would be significant as business cannot be conducted without the computer systems, this would result in it being unable to administer payments to investors, employees and suppliers or to monitor loan performance.

This impact is mitigated by way of a disaster recovery plan that includes daily backups offsite and service plans which allow for Asset Finance to operate from alternative site within two days should that prove necessary.

Key staff

Description of circumstanceThis is where one or more key staff leave with no or very short notice. There are three key people in Asset Finance’s head office from a day to day perspective. Whilst knowledge transfer is an ongoing and essential part of Asset Finance’s risk management, the loss of any of these people would place strain on existing resources until further knowledge transfer occurred. This is mitigated by Asset Finance’s ensuring that continual upskilling of staff is maintained.

Two other staff members have significant responsibility from a month to month, business development and strategic perspective. Further support is available at Board level should the need arise.


Why circumstance is of significanceAsset Finance relies greatly on the industry knowledge and skills held by its key people, without which the Asset Finance’s operations would be severely limited.

Likelihood of impactAsset Finance considers that having its head office in Whakatane is further protection against staff loss. Unlike some of New Zealand’s major cities, the town has comparatively less employment and appears to have a strong sense of belonging and staff retention.

Therefore, Asset Finance considers the likelihood of a key staff risk is currently low.

Nature of impactThere would be a lack of knowledge amongst staff on how to properly asses, process loans and adequately administer them.

Potential magnitude of impactThe impact would be that significant pressure is placed on remaining staff to undertake increased workloads whilst the skills gap created by staff leaving were filled.

Although Asset Finance has a small team, there is continuous skills transfer taking place and so reducing the impact to the extent possible. Further, within the Board there is strong knowledge of the business and its operations to assist if necessary.


7. TaxInvesting in fixed interest investment products will have taxation implications. The effect of taxation will vary according to your personal circumstances. You should seek independent professional advice prior to investing and satisfy yourself as to the tax implications of the investment.

Withholding taxUnder current legislation, Asset Finance is required to deduct resident or non-resident (as the case may be) withholding tax from the gross interest payable to you on your investment, and to account for this deduction direct to the Inland Revenue Department.

Provided you supply Asset Finance with your IRD number, you can choose the rate of withholding tax to be deducted. Where you do not provide your IRD number withholding tax is deducted at the default rate (currently 33%).

Asset Finance is not required to deduct withholding tax where you hold a valid Certificate of Exemption. If you hold a Certificate of Exemption, you are required to forward a copy to Asset Finance and to notify Asset Finance immediately if the Certificate of Exemption is withdrawn at any time during the period of your investment.

If you are a qualifying non-resident, and Asset Finance’s prior agreement is sought, Asset Finance will deduct the costs of the Approved Issuer Levy.

Asset Finance does not accept responsibility, nor does it give any undertaking or warranty that withholding tax deductions will not be made from any interest paid to any person who holds or is entitled to hold a valid Certificate of Exemption, where a copy of that Certificate has not been forwarded to Asset Finance. There is no undertaking or warranty given that non-resident deductions will not be made from interest remitted to any address outside New Zealand, irrespective of whether or not the recipient of the interest is or may become a tax resident in New Zealand.


8. Who is involved?Name Role

Issuer Asset Finance Limited Asset Finance issues the debt securities you are purchasing.

Supervisor Covenant Trustee Services Limited Provides independent oversight of Asset Finance in relation to the Secured Deposits.

Legal advisers Stace Hammond Asset Finance’s solicitors with regard to the preparation of this PDS are Stace Hammond.

Auditors Grant Thornton New Zealand Audit Partnership

The auditors are licensed and provided financial advice and assistance to Asset Finance with regard to the preparation of this PDS.

Accountants Ernst & Young, Auckland Ernst & Young provide financial and accounting advice to Asset Finance.


9. How to complainYou can make a complaint to any of the following entities:

Name Contact details

Asset Finance Limited 38 Richardson Street PO Box 497 Whakatane Telephone: (+64 7) 306 0272 Toll free within NZ: 0800 657 800 Facsimile: (+64 7) 306 0274 Email: [email protected] Website: www.assetfinance.co.nz

Covenant Trustee Services Limited Level 6, 191 Queen Street (Crombie Lockwood Building), Auckland PO Box 4243, Shortland Street Auckland 1140 Telephone: (+64 9) 302 0638 Facsimile: (+64 9) 3021037

Companies Office Private Bag 92061 Victoria Street West Auckland 1142 Within NZ: 0508 377 726 Overseas: +64 3 962 616 Website: www.business.govt.nz

Financial Service Providers Register*

*This entity will not charge you a fee for investigating or resolving a complaint.

Private Bag 92061 Victoria Street West Auckland 1142 Within NZ: 0508 377 746 Overseas: +64 3 962 616 Website: www.business.govt.nz/fsp

The Insurance and Savings Ombudsman Scheme (ISO Scheme)

PO Box 10-845 Wellington 6143 Phone: 0800 888 202 Email: [email protected] [email protected] Website: www.iombudsman.org.nz

Complaints can also be made to the Financial Markets Authority through its website www.fma.govt.nz.


10. Where you can find more information

Further information relating to Asset Finance and Secured Deposits is available free of charge on the offer register at: https://disclose-register.companiesoffice.govt.nz. A copy of information on the offer register is available free of charge on request to the Registrar of Financial Service Providers, or on Asset Finance’s website at www.assetfinance.co.nz.

11. How to apply1. Request an investment information pack at www.assetfinance.co.nz/investments.

2. Read Asset Finance’s Product Disclosure Statement

3. Decide on a term and interest rate

4. Complete the application form

5. Send the application form to Asset Finance, along with a cheque or details

Asset Finance is also required to either sight original documents to verify the investor’s identity and address. Asset Finance will contact the investor to discuss these requirements by telephone. Feel free to call Asset Finance to discuss at any point in this process, Asset Finance will be happy to help.

An application form is attached to this PDS and an online version can be found at www.assetfinance.co.nz.

12. Contact informationAsset Finance Limited 38 Richardson Street PO Box 497 Whakatane Telephone: (+64 7) 306 0272 Toll free within NZ: 0800 657 800 Facsimile: (+64 7) 306 0274 Email: [email protected] Website: www.assetfinance.co.nz.


Application for secured deposits

Full name, IRD number and contact details

Individual Investor

Full name

IRD Number – –

Individual Joint Investor (if applicable)

Full name

IRD Number – –

Company or Trust (if applicable)

Full name

IRD Number – –

Physical address

Town/City

Postcode

Phone Work ( )

Home ( )

Mobile ( )

Email

Postal address (if different to physical)

Investment detailsEnter the amount, term and applicable interest rate at which you would like to invest. You can specify multiple deposits (1 on each line) each for a different term and earning at a different interest rate.

Amount(min $500)

Term or maturity date

Interest rate (% p.a.)

Interest Payments

Example only 5 years 6.50% Compound Quarterly

Direct CreditQuarterly

Direct CreditMonthly

$ Compound Quarterly













Bank account detailsSpecify the bank account to which you would like interest and maturity funds paid. Please attach a bank verified deposit slip for this account.

Bank

Branch

Bank Branch Account Number Suffix

Withholding taxIf you do not supply your IRD number, we are required to deduct RWT at 33%

10.5%

17.5%

30%

33%

Exempt

Non-resident

AIL approved issuer levy

For new secured depositsAs part of our audit obligations can you please indicate in your own words the original source of wealth for this investment. Examples:

• Retirement savings from 35 years as a public servant • Savings with an investment maturing from the bank

StatementsHow do you wish your statements to be sent?

Email (electronic)

Post (paper)

SignaturesHaving received and read the Investment Statement of Asset Finance Limited, I/We hereby apply for Secured Deposits as set out above upon the terms and conditions of the Trust Deed and registered Prospectus to which this document relates.

Are you a US citizen or a reporting entity for the purposes of FATCA regulations?

Yes

No

/ /

Signature Signature DateIf signed under power of attorney the attorney hereby declares that they have not had notice of the death of the donor or the revocation of the power of attorney.

• Inheritance from parents’ estate• Sale of farm

Help? Should you need help completing this section, please call us on 0800 657 800

DISCLAIMER

Asset Finance Limited is a Non-Bank Deposit Taker regulated by the Reserve Bank of New Zealand licensed under the Non-Bank Deposit Takers Act 2013, regulated by the Reserve Bank of New Zealand.

Asset Finance Limited is the issuer of the term deposits. Our latest Product Disclosure Statement (PDS) is available at: www.assetfinance.co.nz/investments.

The creditworthiness of Asset Finance Limited has been rated by Standard & Poors, a ratings agency approved by the Reserve Bank under section 86 of the Non-bank Deposit Takers Act 2013.


38 Richardson Street PO Box 49, Whakatane

Telephone: (+64 7) 306 0272 Toll free within NZ: 0800 657 800

Facsimile: (+64 7) 306 0274

[email protected] www.assetfinance.co.nz

PLACE ON A GREEN BACKGROUND

replacement product disclosure statement · 2 | asset finance limited product disclosure statement....

Documents