Best option for exposure to global markets?
I currently have 1/5th of my investment portfolio in Milford's global PIE fund. I am invested in other milford PIE funds and am happy with them, but the milford global fund just invests in other mutual funds from around the world as opposed to all the other Milford funds which actively pick stocks. The returns I am seeing from the global fund are average and the returns are high. I am looking at other options for some global exposure.
I was thinking of investing in the Vanguard Australia US total share market EFT on the ASX or the S&P 500 index offered by ishares.
Questions:
What do you personally invest in for exposure to global markets?
Is 1/5 of total investment enough global investment?, I have heard of some people recommending that 1/2 of your portfolio should be global
Any recommendations or advice would be appreciated.
Thank you.
Warning: My tax situation is almost certainly different to yours.
Quote:
Originally Posted by
zb3
Thanks for that GTM. On first glance these guys look quite good. It seems they even offer access to vanguard mutual funds. Are you using them/have you used them in the past and do you recommend them?
TD Direct in Luxembourg offer me access to a lot of things which are very useful, but charge me for these very useful things.
They offer me custody services. They offer me accounts in multiple currency. They offer me access to a wide range of Mutual Funds. They offer me access to a wide range of ETFs. They offer me access to direct investment in specific shares in a wide selection of markets. They are easy to pop money into.
Note that they do not pay interest on cash balances. Note that they charge for custody services. Note that they charge brokerage. Note that they make money on multi-currency transactions.
Primarily they offer me a "one-stop-shop" which allows me to keep all my non-NZ non-bank investing in one easily-accessible place. This is my main reason for using them. It has worked well for me for years now.
I will shut up now as I am starting to sound as if I am on the payroll.
But before I go - be very careful about all of this. Much of the work of investment is in administration , in compliance, and in taxation.
Before you start flinging money around the world, make sure that you know what you will be up for in the way of tax liabilities, where those liabilities will fall, how you will deal with them when they arrive, as well as the inevitable compliance and administrative overhead
My experience will be of limited value to you.
Quote:
Originally Posted by
zb3
Thanks for the reply GTM. I am looking at investing in UPRO and TQQQ ETFs through them. Just have a few questions for you.
- How does the tax work? Is the tax on dividends withheld at source like in NZ, or do they pay you out their imputation credit without withholding any RWT? Or what? Where is the best place to find out this sort of thing?
- What sort of statements do they send you?
- How difficult is it signing up as an NZ resident?
Any other info you could tell me about the process would be much appreciated.
Thanks for your help.
Mornin' zb3
Tax is either paid or not paid at source. This will vary according to where the investment vehicle is based. The best way to find out the details is to ask, either by email or by a telephone. You do get two consolidated tax statements each year. As a custodian, they simply pass on the details provided by the investment vehicle, and assume that you know what to do with those details.
It's an online system, so they don't send you any statements, but you can access them online, and print them if you feel the urge. Similarly with contract notes and other documentation.
I imagine that it would be as easy to sign up as a New Zealand resident as any other form of resident. I certainly had no issues or problems other than the fact that I have no residential address.
Note: It is almost certain that my residency and tax situation is different to yours. Thus my experience will be of limited value to you, and you should check it out for yourself