Bank of New Zealand (BNZ) has said its investment management unit used wrong tax values on some of the $430 million invested in five of its managed funds.
BNZ head of corporate office Alan Adcock said the incorrect tax values affected the total asset values in each of the five investment
funds.
About $1.3 million of the combined $130 million in the bank's balanced fund and active growth fund was represented by wrong tax values, Mr Adcock said.
Some $6 million of the $300 million invested in the future lifestyle plan's conservative growth fund, balanced growth fund and dynamic growth fund was represented by wrong tax values, he said.
The investment unit was "... taking steps to correct this and intends to ensure that customers' investments will not be adversely impacted", Mr Adcock said.
BNZ had stopped accepting contributions to the five funds and had started a "comprehensive review".
Affected customers would be contacted by the bank and those adversely affected by the tax bungle would be recompensed.
"Investors who have withdrawn funds in the past have generally been advantaged and BNZIM (BNZ investment management) will not be seeking any refund from them," Mr Adcock said.
Meanwhile, withdrawals from the funds were still being processed but, as the issue affected funds valuation, investors might receive a positive adjustment after taking money out.
- NZPA
