global equities · offshore shares
International equities
Listed shares in companies outside NZ. The largest growth-asset sleeve in most NZ diversified-multi-asset funds, typically held via passive or active offshore-equity sub-funds.
International equities — also called global or offshore equities — are listed shares in companies outside NZ. The most-cited benchmarks are MSCI World, MSCI All Country World (ACWI), S&P 500, and FTSE Developed Markets. NZ retail managed funds usually access international equities through underlying offshore-domiciled sub-funds (Vanguard, BlackRock, Dimensional, Mercer) rather than direct security holding.
In diversified-multi-asset NZ funds, international equities are typically the largest growth-asset sleeve — 30–60% of total assets in a Growth-profile fund, compared to a smaller domestic-equity allocation. The currency-hedging policy on the international-equity sleeve materially affects total NZD return: a hedged-to-NZD fund neutralises NZD/foreign-currency movement, while an unhedged fund retains it.
International equities inside a NZ PIE are subject to FIF tax at the fund level. The FIF income flows into the PIE's taxable income and is taxed at the investor's PIR, capped at 28%. The investor does not separately apply FIF rules to their PIE units.
Related terms
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hedged-vs-unhedged
Hedged vs unhedged (NZD)
A hedged fund neutralises foreign-currency movements back to NZD using forward currency contracts. An unhedged fund leaves foreign-currency exposure in place — returns include the NZD/foreign-currency move.
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FIF rules
Foreign Investment Fund (FIF)
A New Zealand tax regime that taxes NZ-resident individuals on the holding of most foreign shares and non-PIE foreign funds above a NZ$50,000 cost-basis de minimis threshold.
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PIR
Prescribed Investor Rate (PIR)
The tax rate applied to your share of a PIE fund's taxable income. NZ has three PIRs for resident individuals — 10.5%, 17.5% and 28% — chosen using a two-year look-back of taxable + PIE income.
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asset-allocation
Asset allocation
The percentage split of a fund's portfolio across asset classes: equities, fixed interest, listed property, cash, alternatives. Drives the fund's risk and return profile more than security selection.