As a wealth manager specialising in helping migrants establish themselves in New Zealand, I’ve guided numerous clients in making the transition. While many investors are initially drawn to the Growth investment category due to its lower financial and time commitments, I’ve found that the Balanced option often better serves those looking to make New Zealand their permanent home. Let me share why this approach might be worth considering for your long-term plans.
Understanding Your Investment Options
The Active Investor Plus visa offers two main investment categories, each with distinct requirements and risk profiles:
Growth Category:
- $5 million investment for 3 years
- Minimum 21 days in New Zealand during the investment period
- Higher risk investments in venture capital, private equity, or agricultural funds
- Limited liquidity, often requiring longer than 3 years for potential returns
Balanced Category:
- $10 million investment for 5 years
- 105 days in New Zealand during the investment period (reducible to 63 days with a $13 million investment)
- Investments in NZ listed equities, bonds, property development, or philanthropic endeavours
- Generally, more liquid with a more moderate risk profile
While the Growth category might seem appealing at first glance due to the lower investment amount and time commitment, the Balanced option offers significant advantages for those with long-term plans in New Zealand.
Beyond the Visa: Planning for Your Future
The investor visa is just one piece of a much larger puzzle. For those genuinely interested in making New Zealand their home, the Balanced category aligns better with a comprehensive wealth strategy.
From our experience working with migrants over the past 15 years, I’ve observed that successful transitions involve much more than simply meeting visa requirements. They require thoughtful planning around tax implications, estate considerations, investment structuring, and lifestyle goals.
The Balanced category, with its longer investment timeframe and greater physical presence requirement, naturally encourages deeper integration into New Zealand life and its financial systems. This alignment creates a more seamless transition for those planning to establish permanent roots here.
Our Approach to Long-term Planning
At Cambridge Partners, we specialise in helping those who choose the Balanced route, particularly when it’s part of a genuine intention to make New Zealand home. Our approach involves:
- Understanding your global financial position and goals
- Identifying potential tax complexities between your home country and New Zealand
- Developing an investment strategy that satisfies visa requirements while supporting your broader financial objectives
- Creating a transition plan that addresses both financial and lifestyle considerations
- Providing ongoing support as you establish yourself in New Zealand
The Balanced investment category allows for a more diversified approach within the New Zealand market, including listed equities, bonds, and property development. While still exposed to New Zealand’s market concentration risks, these investments typically offer better liquidity and more moderate risk profiles than the growth category alternatives.
Collaborative Planning Across Borders
One aspect I particularly value in our work is the collaboration with clients’ existing advisers in their home countries. This partnership ensures that decisions made for your New Zealand investments complement your global financial strategy.
For investor visa clients going through this transition, maintaining this connection with trusted advisers is invaluable. We regularly work alongside overseas advisers to:
- Coordinate asset allocation across multiple jurisdictions
- Address cross-border tax implications
- Ensure estate planning is consistent across countries
- Manage currency considerations and timing of asset transfers
This collaborative approach helps prevent unintended consequences and creates a more cohesive overall strategy.
For example, we might work with the home country adviser to determine the optimal timing for transferring assets to New Zealand, taking into account tax implications in both countries. Or we might collaborate on developing an investment strategy that complements existing holdings in the client’s home country, ensuring proper diversification and risk management across the entire portfolio.
This collaborative approach is particularly crucial when it comes to tax planning. The interplay between two different tax systems can be complex, and having advisers who understand both sides can help avoid potential pitfalls and maximise opportunities for tax efficiency.
Making an Informed Decision
Choosing between the Growth and Balanced investment categories ultimately depends on your personal circumstances and long-term intentions. If New Zealand is simply an option you’re keeping available, the Growth category might suffice. However, if you’re genuinely planning to make New Zealand your home, the Balanced approach often provides a more suitable foundation.
The additional time commitment required by the Balanced category should be viewed not as a burden but as an opportunity to gradually integrate into New Zealand life, understand its markets, and establish meaningful connections.
I’d welcome the opportunity to discuss how we might help you navigate the visa requirements and the entire journey of transitioning your wealth and life to New Zealand. After all, the visa is just the beginning of what could be a rewarding new chapter.
By Johnny Sharland, Principal and Financial Adviser at Cambridge Partners
28 May 2025
