The PIE structure compounding benefit

Investing in a PIE can offer a tax advantage for high-income earners and trusts. And these tax benefits can compound over time.
iStock-1396022174 (1)

Sound investment strategies have always been about more than just generating a return. They also focus on preserving those returns and minimising any factors that can eat into your profits. And one factor that can greatly influence your net return is taxation.

This is where investing in a Portfolio Investment Entity (PIE) can be helpful.


As you know, the PIE pays tax on behalf of its investors at a maximum rate of 28%. This structure provides a tax advantage for high-income earners taxed at 39% and for many Trusts, which will see their tax rate rise from 33% to 39% starting from 1 April 2024.


The benefits of a PIE investment become even more significant when you take into account the compounding effect of these tax savings over the long term. The graph below shows the compounding impact of the PIE tax rate vs 33% and 39% tax rates, assuming a 10% p.a. net return.

Like to learn more about the Wholesale 1 PIE Trust and why we chose the PIE structure? Get in touch – we will be happy to have a more detailed discussion.

Note: This article is intended to provide general information and does not constitute financial advice. We recommend you speak with a financial adviser for advice tailored to your individual circumstances. Investors must qualify as Wholesale Investors as that term is defined in sections 3(2)(a) – (c) or 3(3)(a) of Schedule 1 of the Financial Markets Conduct Act (“FMCA”). The Trust is not suitable for retail investors.

Give us a call on 09 215 9364 or email us at if you’d like to set up a time to talk.

1 thought on “The PIE structure compounding benefit”

  1. Pingback: Wholesale 1 PIE Trust: More about our approach - Merx

Comments are closed.

We'd love to hear from you. Please fill in the form below to request a callback

Contact Merx and see how we can help you on your way.