New Zealand shares
NZ equities
Listed shares in NZX-quoted companies. A core asset class for NZ diversified-multi-asset and single-asset funds, with the S&P/NZX 50 as the most-cited benchmark.
NZ equities are listed shares in companies quoted on the New Zealand Exchange (NZX). The NZX Main Board comprises around 150 listed companies, with the S&P/NZX 50 capturing the largest 50 by free-float market capitalisation and the S&P/NZX 20 capturing the largest 20.
NZ retail managed funds hold NZ equities in two main shapes: as a single-asset-class fund (e.g. an NZ-equity index fund or an active NZ-equity fund), or as a sleeve inside a diversified-multi-asset fund. Diversified-fund SIPOs typically allocate 5–15% of total assets to NZ equities, depending on whether the fund's overall asset-allocation tilt is conservative, balanced, or growth.
NZ equities are tax-favoured inside a PIE: capital gains on NZ-listed shares are exempt from tax under the PIE rules, and dividends carry NZ imputation credits passed through to investors at the PIR. This is one of the main structural reasons PIE wrappers are dominant for NZ-share-heavy retail mandates.
Related terms
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PIE fund · PIE
Portfolio Investment Entity (PIE)
A tax-efficient New Zealand fund structure where investor tax is capped at the investor's Prescribed Investor Rate (PIR), with a maximum of 28%.
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franking credit (Australia)
Imputation credit
A tax credit attached to a NZ company dividend that represents company tax already paid on the underlying profit, used by the shareholder to offset their personal tax on the dividend.
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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.