Kiwisaver Strategy

[Aaron]

You have to wonder, Kiwisaver default schemes are now directed to "balanced" funds rather than "conservative" funds just in time for a recession.

It might have the benefit of people taking more notice of their Kiwisaver funds especially if we have a recession and rising interest rates mean negative returns.

Probably not what the world improvers were hoping for but as is often the case intelligent well meaning meddling world improvers making things worse for the people they are trying to help.

They need to understand their theory only works if interest rates keep dropping and money continues to be debased. Which is probably not a bad bet, probably only a little early on the timing.

[kiora]

Value creating

"Morningstar data director Greg Bunkall said Milford was a high performer because it had a very loose mandate around asset allocation. “It allows them to generate a differentiated return profile, as they can substantially dial up or down the portfolio’s risk buckets as they see the markets evolving.”"

https://www.stuff.co.nz/business/mon...t-30-in-a-year

[iceman]

I have just looked at my Kiwisaver holdings in some detail. I am invested in Simplicity Growth Fund. I find it alarming that 2 of Simplicity's own schemes, appear in the top 10 holdings overall and number 1 & 3 in their NZ portfolio.
Here are the 10 biggest holdings from highest to lowest: Apple, Microsoft, Simplicity Living Ltd, Fisher & Paykel, Simplicity Home Mortgages, NVIDIA , Spark, Infratil, Meridian.

I have been happy with this fund to date but this recent change concerns me. I don't like how Sam Stubbs can just decide where, when and how he wants to "do the right thing" and invest a large proportion of our Kiwisaver money into his schemes. As an example, his 2 schemes combined hold more of my Kiwisaver than any of the other holdings in the fund, including Apple, Microsoft & NVIDIA.


What do others think about this ?

[stoploss]

I have just looked at my Kiwisaver holdings in some detail. I am invested in Simplicity Growth Fund. I find it alarming that 2 of Simplicity's own schemes, appear in the top 10 holdings overall and number 1 & 3 in their NZ portfolio.
Here are the 10 biggest holdings from highest to lowest: Apple, Microsoft, Simplicity Living Ltd, Fisher & Paykel, Simplicity Home Mortgages, NVIDIA , Spark, Infratil, Meridian.

I have been happy with this fund to date but this has recently changed and I don't like how Sam Stubbs can just decide where, when and how he wants to "do the right thing" and invest a large proportion of our Kiwisaver money into his schemes. As an example, his 2 schemes combined hold more of my Kiwisaver than any of the other holdings in the fund, including Apple, Microsoft & NVIDIA.

What do others think about this ?

It's not so much "passive investment" is it if he can move the money into his own projects .

[iceman]

It's not so much "passive investment" is it if he can move the money into his own projects .

No definitely not. I think its time to do some research for an alternative. Then when I looked further down the list, Simplicity Living Limited Redeemable Preference shares appear at 13th biggest holding. More alarm bells !

[audiav]

No definitely not. I think its time to do some research for an alternative. Then when I looked further down the list, Simplicity Living Limited Redeemable Preference shares appear at 13th biggest holding. More alarms !

Same boat as you, except it’s my kids accounts, which have a pretty good whack in them, through good fortune rather than intentional. Wanted to switch them to Kernel but they still don’t offer kids accounts. MoneyKingNZ tries to review the different options while staying neutral.

[iceman]

Same boat as you, except it’s my kids accounts, which have a pretty good whack in them, through good fortune rather than intentional. Wanted to switch them to Kernel but they still don’t offer kids accounts. MoneyKingNZ tries to review the different options while staying neutral.

Just received an advice from Simplicity saying my money has been transferred from them. I am pleased as I am alarmed at what is happening to Simplicity's Kiwsaver funds.

[Jaa]

Same boat as you, except it’s my kids accounts, which have a pretty good whack in them, through good fortune rather than intentional. Wanted to switch them to Kernel but they still don’t offer kids accounts. MoneyKingNZ tries to review the different options while staying neutral.

Are you with Kernel for your own account? They seem like a good option and a bit cheaper than Superlife.

Where did you move to Iceman if you don't mind saying?

[Ricky-bobby]

I’m the same, just pulled some back from aggressive to balanced… 50% growth, 25% balanced, 25% aggressive

[thegreatestben]

I think the concern Snoopy was that the Simplicity Growth and High Growth funds feature holdings of Simplicity Living in the top 5.
Growth it's number 2 and High Growth it's number 4.

Shane Brealey and Sam Stubbs are people who get things done. They make it very clear they want to do good things and that doesn't have to involve not making money for investors.