New Zealand & Australian Shares

Tax efficient, long-term capital appreciation

The New Zealand share market is one of the highest dividend-paying markets in the world, making it ideal for long-term investors. Over the last 40 years the New Zealand share market has grown from a handful of government-controlled companies to over 186 listed shares worth more than $100 billion. 

By owning New Zealand and Australian shares in a PIE portfolio, investors pay no tax on capital gains and, because the maximum PIE tax rate is 28%, they do not need to pay any additional tax on fully-imputed New Zealand dividends. This highly advantageous tax treatment is a big reason why New Zealand shares are an investor favourite. However, we would never advocate putting all your investment eggs in one asset type (see the Global Shares and Global Macro Portfolios for long-term growth and diversification).

Professionally selected companies

NZ Funds New Zealand & Australian Shares Portfolio offers investors a professionally selected portfolio of between 20 and 30 companies. NZ Funds has been researching and investing in Australasian companies for over 30 years. We have research analysts in both New Zealand and Australia who curate a portfolio of companies to meet our criteria for quality, stability and long-term growth potential.

The Portfolio also holds Australian index futures to closely match the market returns of Australian share market index. This ensures investors benefit from owning both actively selected companies and the broader share market. By using index tracking futures, the Portfolio may be more than 100% invested (for example, 120% invested). This amplifies the opportunity for the Portfolio to generate returns over time but may also increase the risk of the Portfolio. 

Highly liquid & convenient

Building an easily accessible but highly diversified portfolio of New Zealand and Australian shares can be time consuming and expensive. It can also be difficult to withdraw or deposit small amounts regularly (for example, to fund retirement spending or family trust distributions) when shares need to be purchased or sold individually.

By using a PIE portfolio, investors can deposit or withdraw in a highly liquid manner small or large amounts whenever they wish, and these amounts will be taken from (or applied to) all the securities in the Portfolio. This ensures each company in the Portfolio retains its optimal weight. Similarly, all dividends are reinvested avoiding both administrative hassle and cost.

Since inception (31 October 2008) to 30 September 2026. Returns are stated after full Portfolio fees and expenses including performance fees (where applicable), but before any advisory fees or investor tax. No management fee rebates have been applied to these numbers, see PDS for management fee rebate criteria. Past performance is not necessarily an indication of future returns. Maximum decline represents the largest decline in value in the previous 12 months. Volatility 5 Years is the annualised standard deviation calculated from weekly returns of the Portfolio over the 5 years ending 30 September 2026. 

The graph displays the change in value of a notional investment of $100 after full fees and tax (assuming a tax rate of 28%) but before any advisory fees (if applicable). No management fee rebates have been applied in the graphs of individual Portfolio performance. In the graph above, quarter ends are full standard calendar year quarters except the first quarter from inception (31 October 2008) which is not a full quarter.

The market index for the Portfolio is made up of the S&P/NZX50 Portfolio Index Gross (70%) and the S&P/ASX200 Total Return Index (30%). In addition to the market index, the performance of futures contracts (an asset class held by the Portfolio) can be illustrated by the S&P ASX 200 Price Index. You cannot invest in these indices and these indices do not take Environmental, Social and Governance (ESG) factors into account.

NZ Funds takes ESG criteria into account in its investment decisions. This impacts on our investment choices. Our ESG criteria are set out in NZ Funds Active Series SIPO. 

NZ Funds is an active manager so the securities listed above may not be held in the future. Past performance is not an indicator of future returns. A full list of securities held by the Strategy is available through NZ Funds Digital Wallet. Rounding may affect totals.

Further information is contained in the Portfolio Profiles and in the NZ Funds Advised Portfolio Service Product Disclosure Statement (PDS).