Advisers urged to question fund managers

Berry said concerns remain about the level of disclosure in offer documents in New Zealand for offshore investments.

He said the use of derivatives, leverage, liquidity of underlying assets, third party transactions, fee burdens and currency risk are issues that are often not fully or clearly disclosed.

"For example in relation to currency risk, many offer documents which invest in international assets do not even mention currency exposure or currency hedging in the product description," he said.

 "This is a grave oversight as the investment statement should give a clear explanation to investors."