This article is relevant to NZ investors. It is a white paper on taxation of foreign equities co-written by MyFiduciary and Kernel Wealth. Overseas investment funds can be attractive for several reasons compared to New Zealand based products. There is a great deal more to choose from, investors can pick from some of the world’s best investment managers, and headline fund manager fees are sometimes much lower. However, in many cases, you will pay more tax than if you invested in a New Zealand product. The extra tax may more than offset any saving in manager fees, leaving you with a lower overall return.