The thing is, IPL does throw off not insignificant cash, and takes advantage of our PIE tax laws which allows them to pay unit holders more than their earnings indefinitely. This is a gift from the NZ government, only partially wound back by Nicola Willis clamping down on (some) of the depreciation top up payouts.


Back to your argument about the NASDAQ being the index that NZ investors should follow? Different market, different risk and cashflow issues with FIF so less tax friendly. Not saying don't do it, but come meal time, I like variety in my PIEs.

SNOOPY[/QUOTE]


Yes the tax situation between NZ pies and US shares is pretty stark. On the former you can get decent dividends with no further tax to pay. On the latter you can receive minimal dividends and pay NZ tax on a hypothetical dividend.