Due Diligence | Method

Grow your investment knowledge.

Invest for Your Future & Vacation in the Present

Known for being unbelievable tourist destinations, Australia and New Zealand are also recognized for their thriving economies, making them prime countries to invest in. The 2017 Index of Economic Freedom, compiled by The Heritage Foundation, ranked Australia and New Zealand in the top five – categorizing them as countries with “free” economies.
Evaluating each country’s rule of law, government size, regulatory efficiency and open markets, the index – developed in 1995 – gives a grade from 0-100 (or repressed to free economies). While the majority of economies around the world are “moderately free”, Australia and New Zealand’s high scores directly correlate to their higher income per capita, social progress, democratic government, encouraged entrepreneurialism, and involvement in global trade.
Index of Economic Freedom Image
2017 Index of Economic Freedom
Source: The Wall Street Journal and The Heritage Foundation, 2017
With all of these factors leading to greater prosperity, Commonwealth Funds believes these two countries offer the economic stability many investors are interested in. In fact, since the inception of Commonwealth’s Australia/New Zealand Fund in 1991, Australia and New Zealand’s economies have continued to grow – even through the 2009 global recession.
Putting this in perspective for U.S. investors, Australia and New Zealand citizens benefit from greater judicial effectiveness, fiscal health, and business freedom in comparison to the United States. However, trade and investment freedom is comparable between the three countries.
Coupled with their proximity to Asia and the rising trade freedom in the region, Australia and New Zealand are posed to reap the benefits of their ample exports including technology, manufactured goods, mining, and agriculture. U.S. investors also benefit from their easy to understand tax environment and similar market structures, as well as the fact that the countries are English speaking.
Wintergarden Sign ImageIn addition to the flourishing economies, Australia and New Zealand offer a variety of iconic and unique settings for tourists to enjoy. From the Sydney Harbour, home of the famed Sydney Opera House, in Australia to the Wintergarden in Auckland, New Zealand, these two countries have beautiful and active landscapes prime for visitors to enjoy. The South Island of New Zealand also offers luxurious accommodations, like the historic Marlborough Lodge in the center of the famous Marlborough wine region in Blenheim, New Zealand.
International Antarctic Centre ImageUndoubtedly, Australia and New Zealand are home to interesting surroundings. In fact, Christchurch, New Zealand has been labeled “the gateway to the Antarctic” and offers over 100 direct flights there a year. Even Antarctic air logistic operations for the United States and Italy are organized through Christchurch Airport. Beginning in 1955 through today, Christchurch International Airport has supported various U.S. Airforce missions including Operation Deep Freeze as well as the International Antarctic Centre.
Whether you’re interested in Australia and New Zealand to diversify your portfolio or expand your cultural awareness, both countries offer features that make both possible. For more information about Australia and New Zealand – as well as Commonwealth’s Australia/New Zealand Fund – please visit our Fund page.