Australian vs International Shares

[ENP]

If investing in a share fund, what are the pro's and con's of investing in an Australian one compared to a "world" share fund?

Thanks.

[stone small green]

easier and cheaper.
NZX and asx are treated much in the same way by brokers.

If u trade in the US, the transaction cost will be much higher.
market is more complex,
to start, I'd say NZX, then to ASX..then wherever u want
good luck
ssg

[Lego_Man]

Sector diversification - the Aussie economy is skewed towards Resources.

[ratkin]

Dont totally understand the question , but if your looking for exposure to world markets then buy a few of the aussie listed funds which invest in world shares , for example i would look at MFF

[ENP]

easier and cheaper.
NZX and asx are treated much in the same way by brokers.

If u trade in the US, the transaction cost will be much higher.
market is more complex,
to start, I'd say NZX, then to ASX..then wherever u want
good luck
ssg

I'll trade in a managed share fund though? So won't have contact with brokers or anything like that?

I've read that NZX is only 0.5% and ASX only 2% of world shares, by going international, I'll have more diversification in wider range of industries. Does this really matter?

[ENP]

Dont totally understand the question , but if your looking for exposure to world markets then buy a few of the aussie listed funds which invest in world shares , for example i would look at MFF

I'm comparing New Zealand managed funds that invest either in Australian or world shares, just trying to decide...

[POSSUM THE CAT]

ENP listed share funds wich you buy on market are better than straight managed funds where you usually pay at least a 5% entry plus a trailing commision to the financial advisor that put you into it. And if you need money you can sell via a broker. You may find with managed funds that the funds are frozen. No payout or if there is a payout or if there is sometimes a 6months wait.

[percy]

If investing in a share fund, what are the pro's and con's of investing in an Australian one compared to a "world" share fund?

Thanks.

I think Lego man's reply sums it up.I have some MLN Marlin Global listed on nzx.Although sp is under my$1 cost I feel it is on track.I invested directly in USA stocks a few years ago and the transaction costs were high. I also had problems when selling as I had to have the share certifacates in the USA before I could sell.There were also problems should I die with paper work.

[ENP]

ENP listed share funds wich you buy on market are better than straight managed funds where you usually pay at least a 5% entry plus a trailing commision to the financial advisor that put you into it. And if you need money you can sell via a broker. You may find with managed funds that the funds are frozen. No payout or if there is a payout or if there is sometimes a 6months wait.

Are listed share funds like FONZ, TENZ, OZZY, WINZ?

Like ETF's (exchange traded funds). These have management fees also? I've been looking at the Raboplus ones...

http://www.raboplus.co.nz/managed-funds/managed-fund-range/default.aspx

[ratkin]

I'm comparing New Zealand managed funds that invest either in Australian or world shares, just trying to decide...

In that case go for world shares

[ENP]

In that case go for world shares

Reasons being?

[ratkin]

Australia and New Zealand very similar . By going for world shares you increase diversification away from the region you live in.

[ENP]

Australia and New Zealand very similar . By going for world shares you increase diversification away from the region you live in.

So diversification is good?

[ratkin]

Well , in an extreme example , if New Zealand suffered a huge natural disaster like in Haiti , with a tsunami thrown in , then you would not only lose your home but all your companies would probably dissapear too.
However if all your investments were offshore then you would only lose your house

[OldRider]

Maybe some ideas from this link

http://www.asx.com.au/products/pdf/lmi/lmi_performance_200912.pdf

For myself I avoid unit trusts and fund managers, preferring the LIC way.
For international shares PMC takes some beating, there has to be a reason it seems to be always priced rather higher above NTA than anyone else.

For Australian shares AFI didn't get so big without being well managed.

[Huang Chung]

I also prefer the LIC approach. Just remember with international exposure, there is a currency risk to consider as well. Different funds will have different ways to try to manage exchange rate risk (or not).

Also look to see if the LIC is allowed to short or not. For example, if you don't like the ides of shorting stocks (or currency), you wouldn't want to be in a LIC that undertook such activities.

[POSSUM THE CAT]

ENP listed funds have much lower fees than managed funds because they do not pay advisors commisions or have to track each individual holding so much or hold a large amount of cash for redemptions etc. I hold PMC & TGG on the ASX. Hunter Hall listed funds or if you like listed investment companies are worth a look

[CJ]

ENP listed funds have much lower fees than managed funds because they do not pay advisors commisions or have to track each individual holding so much or hold a large amount of cash for redemptions etc. I hold PMC & TGG on the ASX. Hunter Hall listed funds or if you like listed investment companies are worth a lookWhat are the NZ tax implications - are they subject to FDR or do they fit the australian exemption?

[Ish]

What are the NZ tax implications - are they subject to FDR or do they fit the australian exemption?

If they are unit trusts then they will likely be subject to the FIF regime unless they have an RWT proxy.

[Ish]

So diversification is good?

If you are risk averse yes.

If you arent.. then maybe not

[voltage]

there are global investment trusts, some listed on the NZ share market worth looking at, very low management cost, they are UK based, access via a share broker. I do not like unit trusts, a flawed system. If there are many withdraws they have to sell shares regardless and management fee is higher.