Having read a recent article from the Financial Standard in Australia I was really surprised to see how much it costs Kiwi’s to purchase NZ shares.
According to the article NZ is the most expensive market in Asia Pacific for purchasing shares. Whereas the likes of investors in Australia and Hong Kong pay on average 35bp or 0.35% per trade, here in NZ the average is 400bp or 4.00% … that’s over 10 times as expensive here in NZ!
I then compared it to what we charge as entry fees for our managed funds, which include NZ equities funds AMP, Asteron, ING and Tower. We charge an entry fee of 75bp or 0.75% which is 80% cheaper than the average share trade as reported by the Financial Standard. Investors need to take a close look at managed funds as a more attractive means of investing in NZ equities – even more so when you consider that most managed funds offer the PIE tax benefits.
To check out our range of managed funds take a look at our Fund Selector (note – all managed funds we offer are PIEs).