NZ Funds New Zealand and Australian Shares
Managed by NZ Funds NZ Funds New Zealand and Australian Shares is a australasian equities managed fund operated by NZ Funds; PIE-structured; FMA risk indicator 5/7. Headline terms: annual fund charge 2.55% · distributions no distributions (accumulating). Compared with 57 other same-category funds on this site, the 2.55% annual fund charge sits above the same-category median of 1.00%.
PIE tax treatment — capped at your PIR (max 28%)
This fund is a Portfolio Investment Entity (PIE) under Subpart HM of the Income Tax Act 2007. Income is taxed at your Prescribed Investor Rate (10.5% / 17.5% / 28%), not your marginal income-tax rate. The fund manager calculates and pays the tax on your behalf — when your PIR is correct, you usually don't need to declare PIE income in your annual tax return. See our PIR guide and PIE tax basics for the full picture, or use the PIR calculator to confirm your rate.
Annual fund charge
2.52%
vs peer avg 1.29%
Risk indicator
5/7
1 = lower risk · 7 = higher risk
5-year return p.a.
4.59%
peer avg 4.31%
Fund size
NZ$194.3m
78% growth · 22% income
To grow your investment over the long term by investing in growth assets and other authorised assets with active management. Anticipated to mainly own and trade New Zealand and Australian shares, and other authorised asset classes over the minimum suggested timeframe.
Benchmark track record
Compare Australasian Equities consistency →How NZ Funds New Zealand and Australian Shares performed against its own market-index benchmark each year, after fees and tax — from the FMA fund-update dataset. Historical track record, not current-year performance; past performance is not a guide to the future.
Growth of NZ$10,000
2013–2022, after fees & taxA notional NZ$10,000 compounded by each year's disclosed net return — a track-record trajectory from the FMA fund-update data, not a live unit price. Past performance is not a guide to the future.
NZ$10,000 → NZ$23,134 · to 30/06/2022
Beat its benchmark in 3 of 10 years
annual returns to 30/06/2022Since inception: 8.67% p.a. after fees & tax vs benchmark 14.02%.
How NZ Funds New Zealand and Australian Shares differs
Factual contrasts drawn from the PDS, SIPO and latest portfolio holdings — no opinion.
- Top 3 holdings
- Mercury NZ Ltd (6.0%) · Port of Tauranga Ltd (5.6%) · Mainfreight Ltd (5.5%)
- Currency policy
- NZ Funds actively manages foreign currency in each Portfolio. Where a Portfolio holds assets denominated in a foreign currency, NZ Funds may choose to hedge back to the New Zealand dollar or retain a foreign currency exp…
Key facts
Fund start date
31 October 2008
Distributions
No distributions (accumulating)
Tax structure
PIE
Capped at your PIR (max 28%)
Performance fee
From the Product Disclosure Statement.
15% of the wholesale trust's returns above the hurdle rate. Performance benchmark: 70% S&P/NZX 50 Portfolio Index Gross, 30% S&P/ASX 200 Total Return Index. Subject to high-water mark.
Investment policy
From the Statement of Investment Policy and Objectives (SIPO).
Strategic asset allocation ranges
| Asset class | Target | Min | Max |
|---|---|---|---|
| Cash and cash equivalents | 5% | — | 50% |
| New Zealand fixed interest | 0% | 0% | 50% |
| International fixed interest | 0% | 0% | 50% |
| Australasian equities | 65% | — | 150% |
| International equities | 0% | 0% | 50% |
| Listed property | 10% | — | 50% |
Responsible-investment approach
NZ Funds has adopted a responsible investment policy considering ESG factors as material to long-term investment returns. The policy excludes securities from companies involved in activities such as nuclear weapons, controversial weapons, tobacco, civilian firearms, pornography, unsustainable palm oil, alcohol (≥10% revenue), armaments (≥10% revenue), gambling (≥10% revenue), fossil fuel exploration/production (≥10% revenue), fossil fuel power generation (≥10% revenue), fossil fuel services (≥50% revenue), and fossil fuel distribution (≥50% revenue). Exclusions do not apply to derivatives.
Derivatives policy
NZ Funds uses derivatives to both increase returns (active positions) and reduce risk (hedge positions), including creating leverage where a derivative produces the same gain or loss as a much larger investment in the underlying asset. Book value is used to measure derivative value except for equity index futures, commodity futures, options, crypto asset futures and certain swaps where full notional value may be used.
Reading between the lines
Plain-English summary of the scheme's disclosed conflicts and performance-fee mechanics, drawn from the OMI and PDS. Factual restatement — no opinion.
- NZ Funds discloses a conflict of interest: it acts as manager of both the investor-facing Strategies/Portfolios and the underlying wholesale trusts, meaning it sets fees at both levels simultaneously.
- NZ Funds charges performance fees of 10–15% of returns above benchmark inside certain wholesale trusts; these fees reduce wholesale trust values and therefore indirectly reduce investor returns before any portfolio-level fees apply.
- A notional management fee of 0.50% per annum is built into the hurdle-rate calculation for wholesale trusts, meaning the performance-fee threshold is set lower than if actual costs alone were used.
- NZ Funds' directors, employees, and their associated persons may invest in the same Strategies and Portfolios as external investors, a personal-interest conflict NZ Funds has openly disclosed.
Generated 2026-05-28 from NZ Funds Managed Portfolio Service Part Two (NZ Funds Wealth Builder) OMI (dated 2025-10-20). The verbatim disclosures appear in full below — this summary is a navigation aid, not a substitute.
Scheme disclosures
From the Other Material Information (OMI) document. Scheme-level — applies to every fund in this scheme.
Trustee / Supervisor
The New Zealand Guardian Trust Company Limited
Auditor
Ernst & Young
Custodian
Citibank N.A. (custodial services agreements entered into by the Supervisor, however all property of the Portfolios is currently held by the Supervisor)
Conflicts disclosed
2
In OMI
Conflicts of interest disclosed in OMI
- The Portfolios invest in wholesale trusts managed by NZ Funds, creating a conflict of interest because NZ Funds charges a performance fee in certain wholesale trusts which certain Portfolios invest in, and these fees affect the value of the wholesale trusts and indirectly the returns of the Portfolios, and could materially influence investment decisions in respect of a Portfolio if non-arm's length fees were paid.
- NZ Funds' directors and employees and their associated persons and entities may invest in the Portfolios.
How this fund compares to peers
Mechanical comparison vs the 58 other australasian equities funds in our cohort. Source: FMA Disclose register via Sorted Smart Investor. Past performance is not a reliable indicator of future returns.
Annual fund charge
2.52%
Category median: 1.01%
Pricier than most peers (top 97% by fee)
5y return p.a. (after fees)
+4.59%
Category median: +1.68%
Above peer median (64th percentile)
Fund size
NZ$194.3m
Category median: NZ$74.1m
Top 20% by AUM
Illustrative 5y fee impact on a sample balance of $10,000
$1,198
Compounded charge over 5 years (excl. returns)
$703 more than peer median
Read the full fee-vs-peers breakdown →
Mechanical scores only — no opinion or recommendation. Different funds suit different investor goals. ManagedFundsNZ is not a Financial Advice Provider. Read the current PDS and consider speaking to a licensed financial adviser.
Top 10 holdings
As at the latest published quarterly fund update (via Sorted Smart Investor).
| Holding | % of fund |
|---|---|
 Mercury NZ Ltd | 5.99% |
| PO Port of Tauranga Ltd | 5.59% |
 Mainfreight Ltd | 5.45% |
 Chorus Ltd | 5.34% |
| HG Heartland Group Holdings Ltd | 5.21% |
 A2 Milk Co Ltd | 4.98% |
 Summerset Group Holdings Ltd | 4.80% |
 Freightways Ltd | 4.54% |
| FB Fletcher Building Ltd | 4.49% |
| VS Vulcan Steel Ltd | 4.32% |
Documents
Every dated PDS, quarterly fund update and full-portfolio holdings file. Linked from the FMA Disclose register via Sorted Smart Investor.
- NEW ZEALAND AND AUSTRALIAN SHARES (FND1623) Full portfolio holdings 31 March 2026.xlsx Download the full portfolio holdings. XLSX, 1.39 KB
- NZ Funds Active Growth Series PDS 28 October 2025.pdf How this investment works, including about the provider, risks, costs and potential returns PDF, 307.64 KB
- NZ Funds Active Series New Zealand and Australian Shares Fund Update 31.03.26.pdf The quarterly update published by the provider PDF, 176.68 KB
- NZ Funds Active Inflation Series PDS 28 October 2025.pdf Additional product disclosure statement from the provider PDF, 430.11 KB
- NZ Funds Active Income Series PDS 28 October 2025.pdf Additional product disclosure statement from the provider PDF, 261.19 KB
- NZ Funds Active Series Other Material Information 28 October 2025.pdf NZ Funds Active Series – Other Material Information contains additional information relating to the NZ Funds Active Series and sho
- NZ Funds Managed Portfolio Service Scheme SIPO 28 October 2025.pdf Statement of investment policy and objectives PDF, 798.71 KB
About this category
Funds investing primarily in shares listed on the NZX (New Zealand) or ASX (Australia), or both as Trans-Tasman portfolios. Includes active stock-pickers and passive index trackers.
About NZ Funds
NZ-owned manager offering Wealth Builder strategies, Income Generator, and a series of Global and New Zealand sector portfolios.
See all funds from NZ Funds →Common questions
Questions people ask about NZ Funds New Zealand and Australian Shares
Drawn from Google's "People also ask" panel and answered with reference to the fund's filed PDS, Fund Update and FMA Disclose data. Not personal financial advice — for guidance specific to your situation, consult an authorised financial adviser.
Do I pay tax on Australian shares in NZ?
Yes, Australian shares held through a New Zealand PIE fund are subject to New Zealand tax on the fund's income and gains. This NZ Funds New Zealand and Australian Shares fund is structured as a PIE, which means your tax is capped at your prescribed investor rate (PIR), with a maximum of 28%. See the IRD website for details on how PIE taxation applies to overseas investments.
How are overseas shares taxed in NZ?
Overseas shares held through a New Zealand PIE fund are taxed on a look-through basis—you pay tax on the fund's income and gains at your PIR (capped at 28%), rather than on unrealised gains. For this fund, the PIE tax structure provides a defined tax treatment regardless of whether holdings are Australian, international, or domestic shares. Check the fund's PDS and IRD guidance on PIE taxation for full details.
Does Australia have a double tax agreement with New Zealand?
Yes, Australia and New Zealand have a double taxation agreement that applies to income and capital gains. However, the specific tax treatment of overseas shareholdings through a New Zealand PIE fund is determined by New Zealand tax law rather than the bilateral agreement. For detailed guidance on how this agreement affects your investment, consult the IRD website or a tax adviser.
Head-to-head
Compare NZ Funds New Zealand and Australian Shares with…
Side-by-side numbers — fees, returns, risk, fund size, asset mix.
Peer funds
Other Australasian Equities funds
Same manager
Other funds by NZ Funds
- NZ Funds Global SharesInternational Equities
- NZ Funds New Zealand and Australian BondsNZ Fixed Interest
- NZ Funds Global BondsInternational FI
FMA risk band
Same risk band (5/7)
See every NZ retail managed fund with the same standardised FMA risk indicator. Useful for peer-checking volatility-comparable funds outside this category.
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AI & integrations
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Frequently asked questions
Mechanical Q&A grounded in the fund's PDS, SIPO, and latest QFU on the FMA Disclose register. Verify against the source before relying on any of this.
Who manages the NZ Funds New Zealand and Australian Shares?
NZ Funds New Zealand and Australian Shares is managed by NZ Funds. NZ-owned manager offering Wealth Builder strategies, Income Generator, and a series of Global and New Zealand sector portfolios.
What asset class is the NZ Funds New Zealand and Australian Shares?
It is a australasian equities managed fund. The fund has a growth risk profile. Funds investing primarily in shares listed on the NZX (New Zealand) or ASX (Australia), or both as Trans-Tasman portfolios. Includes active stock-pickers and passive index trackers.
What are the fees for the NZ Funds New Zealand and Australian Shares?
The annual fund charge for the NZ Funds New Zealand and Australian Shares is 2.52% p.a., as reported in the latest Quarterly Fund Update sourced from the FMA Disclose register. Always check the current PDS for any additional fees.
What is the risk indicator for the NZ Funds New Zealand and Australian Shares?
The risk indicator is 5/7 on the standardised FMA-mandated scale, where 1 is lower risk and 7 is higher risk. The risk indicator is calculated from the fund's price volatility over the past five years and is published in every Quarterly Fund Update.
Is the NZ Funds New Zealand and Australian Shares a PIE fund?
Yes. The NZ Funds New Zealand and Australian Shares is structured as a New Zealand Portfolio Investment Entity (PIE). Investor tax on the fund's income is capped at the investor's Prescribed Investor Rate (PIR), which has a maximum of 28%. Most NZ-resident retail investors with a taxable income at or below NZ$48,000 qualify for a lower PIR.
How big is the NZ Funds New Zealand and Australian Shares?
Fund size (assets under management) is NZ$194 million as at the latest Quarterly Fund Update. Asset mix is approximately 78% growth assets and 22% income assets.
What does the NZ Funds New Zealand and Australian Shares invest in?
The latest published top holdings are: Mercury NZ Ltd (5.99%), Port of Tauranga Ltd (5.59%), Mainfreight Ltd (5.45%). Holdings are disclosed in each Quarterly Fund Update; the full portfolio holdings file is also available via the FMA Disclose register.
How can I invest in the NZ Funds New Zealand and Australian Shares?
The NZ Funds New Zealand and Australian Shares is available via NZ Funds directly. Always read the current Product Disclosure Statement before investing.
Do I pay tax on Australian shares in NZ?
Yes, Australian shares held through a New Zealand PIE fund are subject to New Zealand tax on the fund's income and gains. This NZ Funds New Zealand and Australian Shares fund is structured as a PIE, which means your tax is capped at your prescribed investor rate (PIR), with a maximum of 28%. See the IRD website for details on how PIE taxation applies to overseas investments.
How are overseas shares taxed in NZ?
Overseas shares held through a New Zealand PIE fund are taxed on a look-through basis—you pay tax on the fund's income and gains at your PIR (capped at 28%), rather than on unrealised gains. For this fund, the PIE tax structure provides a defined tax treatment regardless of whether holdings are Australian, international, or domestic shares. Check the fund's PDS and IRD guidance on PIE taxation for full details.
Does Australia have a double tax agreement with New Zealand?
Yes, Australia and New Zealand have a double taxation agreement that applies to income and capital gains. However, the specific tax treatment of overseas shareholdings through a New Zealand PIE fund is determined by New Zealand tax law rather than the bilateral agreement. For detailed guidance on how this agreement affects your investment, consult the IRD website or a tax adviser.