Kiwisaver Strategy

[kiora]

Now this is hard to beat.100% in first year
https://www.goodreturns.co.nz/articl...+November+2020

[kiora]

Contrarian rules coming up?
"capital allocation, that people will re-up with managers who have won in the last year, and they will not allocate to managers who have lost. And we know that that's actually a losing strategy, that you do worse that way because of regression to the mean, and you're not taking luck into account, and you're just thinking about short-term results, in terms of as opposed to process.

Certainly true and-- you don't want to do this in options trading, as well. Whether you're up or down in a particular moment should matter very little. But it's a real mistake that we make and it's a weakness of human decision-making."
https://finance.yahoo.com/video/form...090000863.html

[peat]

So the default providers who lost their status actually lose the clients who were placed with them!!! I'm a bit surprised coz that is verging on the punitive.

Those in default funds managed by organisations losing their default manager status will be automatically shifted to one of the ongoing providers unless they actively choose a manager.

Lower KiwiSaver default fund fees, performance seemingly ignored | BusinessDesk (paywalled)

The main thrust of the article though is how myopic the govt was in only considering fees.... even with my financial planning training I still think its best to pay a bit more and get quality active management.

Fisher Funds was first outright but cast out from the default selection


Fisher Funds chief executive Bruce McLachlan said his company was surprised and disappointed at not making the cut, given its strong track record, but stressed that the default fund was only one aspect of its KiwiSaver business.
"We're proud of the returns and value for money we have delivered for our KiwiSaver members since 2007," McLachlan said.
"Our default fund has consistently outperformed peer group averages and, after fees, ranks first or first equal on the one, three and five-year results, based on Morningstar results," he said.

[stoploss]

So the default providers who lost their status actually lose the clients who were placed with them!!! I'm a bit surprised coz that is verging on the punitive.

Those in default funds managed by organisations losing their default manager status will be automatically shifted to one of the ongoing providers unless they actively choose a manager.

Lower KiwiSaver default fund fees, performance seemingly ignored | BusinessDesk (paywalled)

The main thrust of the article though is how myopic the govt was in only considering fees.... even with my financial planning training I still think its best to pay a bit more and get quality active management.

Fisher Funds was first outright but cast out from the default selection


Fisher Funds chief executive Bruce McLachlan said his company was surprised and disappointed at not making the cut, given its strong track record, but stressed that the default fund was only one aspect of its KiwiSaver business.
"We're proud of the returns and value for money we have delivered for our KiwiSaver members since 2007," McLachlan said.
"Our default fund has consistently outperformed peer group averages and, after fees, ranks first or first equal on the one, three and five-year results, based on Morningstar results," he said.

Hi Peat , the way I read it unless the default provider can make contact and transfer them into one of their other funds they would then lose it .
I think FMA had been on at them for a while to make contact with the client and see if they might be better suited in a higher or slightly higher risk fund ....
Be very interesting to see how many of them they can suddenly make contact with and get them into a balanced fund
As of 31 March ASB had $ 4.1 Bio in their default fund , AMP $ 1.3 bio and ANZ 1.2 Bio
https://cdn.morningstar.com.au/mca/s...vey-2021Q1.pdf

[SBQ]

Hi Peat , the way I read it unless the default provider can make contact and transfer them into one of their other funds they would then lose it .
I think FMA had been on at them for a while to make contact with the client and see if they might be better suited in a higher or slightly higher risk fund ....
Be very interesting to see how many of them they can suddenly make contact with and get them into a balanced fund
As of 31 March ASB had $ 4.1 Bio in their default fund , AMP $ 1.3 bio and ANZ 1.2 Bio
https://cdn.morningstar.com.au/mca/s...vey-2021Q1.pdf

In my early years of finance studies (nearly 25 years ago), the level of risk the individual should make would depend on their age. Meaning the so called 'default' fund in these Kiwi Saver funds do a poor job of addressing the age status situation for those investing for retirement. Why is this not considered? Does the FMA use age as a factor when they scold at KS funds having poor performance on their default providers managed funds?

What are the make up of these KS funds in terms of risk level? The mgt fees they take is an issue if they're only tweaking % proportions of their investments into fixed income / bonds to equity ratio. What I see is industry gives out awards to these fund managers for merely just tweaking things around or doing more diversification and by luck, they do better, they win. There's no 'real' art into their level of stock picking but they sure do know how to rake in the advertising.

[justakiwi]

Never mind.

[kiora]

"In a conservative fund, they would end up with about $185,000, or $151 a week, compared to $272,000 or $222 a week in a growth fund."
https://www.stuff.co.nz/business/opi...nvestment-risk

[x2rider]

"The problem was that many of those investors sold out of things like shares at the low point of the market, when they were worth less than they had been for years. They then shifted into funds that largely invested in things like term deposits and cash – and weren’t in the market when it rebounded afterwards.Some switched back but it was too late to save the lost money.
This has made a tangible difference to balances, and to the end result that many of these people will have at retirement. One financial adviser estimated that people who panic-sold missed out on combined $3.5 billion in retirement savings."

I did switch my Milford but went from the Growth fund to the aggressive fund and upped my contributions

[madmat]

I switched from Generate after they thought investing Kiwisaver funds into Social housing was a good idea. 1.5% returns for a feel good factor? No thanx, not with my money.

[Bjauck]

I am currently in the Balanced fund of a Big Bank scheme. The big bank is about to close its dedicated online portal for KiwiSaver account detailed information. The information available on the Internet Banking site is not very transparent and is in summary form with no information on units held or unit prices. So it will have insufficient information for updating the spreadsheet. Has anybody got any particular scheme recommendations? I see Milford were top in Canstar's 2020 review.