Index v Managed

[Schrodinger]

http://www.cnbc.com/id/102157205

Favouring index funds at the moment and unless you get lucky with a good fund this maybe the best strategy.

[Corporate]

What NZ index funds are you looking at?

[GTM 3442]

I tend to use Index funds for a particular geography (Germany, US, Asia etc) and to use
Active funds for niche/industry exposure (gaming, biotech etc).

There are very few places in the world where I would consider buying individual financial instruments.

So each fund type has its place.

[OldRider]

GTM,
Your thinking makes sense to me too. To be able to get such a wide range of ETF's on the ASX
with the ease of purchasing there, and currency simplicity is real useful.

[Schrodinger]

Looking into a few on the ASX. They seem to have a few options that are interesting. I think you can also borrow against them which is good.

www.asx.com.au/products/etf/managed-funds-etp-product-list.htm#ETF (http://www.asx.com.au/products/etf/managed-funds-etp-product-list.htm#ETF)

For example: http://au.ishares.com/fund/fund-performance-IJH-ASX.do has acceptable returns and gives diversification.

[Harvey Specter]

Looking into a few on the ASX. I dont think these qualify for the 'Australian' exemption from FIF income so you are required to do a FIF calculation for your tax return.

I am surprised the NZX didn't buy AMP's Global index when they closed it. Seems an obvious way to get people interested in the sharemarket. Options like https://www.wealthfront.com/ and www.stockspot.com.au/ are becoming extremely popular overseas (I dont know if you can invest in these from NZ). I especially like Wealthfronts tax loss harvesting - great option for a country with CGT.

If NZ had self managed kiwisaver funds, I would investigate setting up something for NZ.

[dingoNZ]

This is a great idea but I cannot see if implemented for a while. Australia have some super funds that can be 'selfmanaged' but AFAIK you can only pick stocks from the ASX200. I'm unsure if there are maximum weightings in each stock but I really do like the idea.

If this happens in NZ it would be a while off


I dont think these qualify for the 'Australian' exemption from FIF income so you are required to do a FIF calculation for your tax return.

I am surprised the NZX didn't buy AMP's Global index when they closed it. Seems an obvious way to get people interested in the sharemarket. Options like https://www.wealthfront.com/ and www.stockspot.com.au/ (http://www.stockspot.com.au/) are becoming extremely popular overseas (I dont know if you can invest in these from NZ). I especially like Wealthfronts tax loss harvesting - great option for a country with CGT.

If NZ had self managed kiwisaver funds, I would investigate setting up something for NZ.

[Harvey Specter]

This is a great idea but I cannot see if implemented for a while. Australia have some super funds that can be 'selfmanaged' but AFAIK you can only pick stocks from the ASX200. I'm unsure if there are maximum weightings in each stock but I really do like the idea.

If this happens in NZ it would be a while offMy comments re self managed kiwisaver was more a reference to the Australian self managed superfunds. With those, you have complete control over what you invest in (Its effectively just a family trust but you have to pay for a special trustee to ensure you follow the rules and dont withdraw the cash before your 65 - makes sense for anyone with more than $500k locked away). I think there is one self directed in NZ via one of the brokerage firms (Craigs?) but the fees are expensive.

[D. Fender]

This is a great idea but I cannot see if implemented for a while. Australia have some super funds that can be 'selfmanaged' but AFAIK you can only pick stocks from the ASX200. I'm unsure if there are maximum weightings in each stock but I really do like the idea.

If this happens in NZ it would be a while off

Hi, the Aussie self-managed super fund market has around $700 billion of assets. It's around 30% of the entire Aussie super fund market. Not sure re the limitation to ASX200 stocks. I'm pretty sure you can invest in any listed stocks and also in funds.

It won't be too far away in NZ. Once Kiwisaver balances start get above $250K I think demand for self-managed will soar. Imagine being able to manage your own Kiwisaver or being able to allocate it to managers you like even if they don't offer Kiwisaver funds.

[blackcap]

Hi, the Aussie self-managed super fund market has around $700 billion of assets. It's around 30% of the entire Aussie super fund market. Not sure re the limitation to ASX200 stocks. I'm pretty sure you can invest in any listed stocks and also in funds.

It won't be too far away in NZ. Once Kiwisaver balances start get above $250K I think demand for self-managed will soar. Imagine being able to manage your own Kiwisaver or being able to allocate it to managers you like even if they don't offer Kiwisaver funds.

It would be brilliant, but wait for the bureaucrats to poo poo this idea with the usual rubbish excuses. Probably only those with an AFA qualification or similar will be allowed to self manage. But yes I would love to be able to manage my own Kiwisaver. Currently I use the Smartshares as my provider as in NZ I cannot see many other options. (My overseas exposure I get through my own investments)
p.s I bug smartshares on a regular basis about providing us with an International ETF or similar that could also be incorporated into KiwiSaver. They assure me they are working on it and seeing if it will be feasible.

[Bobdn]

My managed fund (Devon Alpha fund) has always done better than my passive funds (via Superlife and Smartshares). In fact Devon Alpha has done better than my own stock picks over all. I bought in at 90 odd cents and have been putting in a $1000 per month for the last few years and reinvested the dividends. I see today the unit price is $1.51 cents. That's tidy and a lot less stressful way of doing business. Devon seems to be holding a lot of cash in the fund at the moment, however. Maybe that's a good thing. I'm 100% confident they know more about these things than I do.

[stoploss]

Managed funds not always easy ......

https://www.investordaily.com.au/markets/41190-ausbil-suspends-redemptions-on-microcap-fund?utm_source=ID&utm_campaign=ID_Newsflash&utm_medium=email

[FIsaver]

If NZ had self managed kiwisaver funds, I would investigate setting up something for NZ.


Superlife - in some ways have "self managed" kiwisaver - in that you are able to choose and allocated different % of your kiwisaver to any of their investment options including the ETF's / an Index. https://superlife.co.nz/investments/investment-options

There has been a separate thread on which kiwisaver is best sighting "simplicity" as the cheapest. While they are they only offer three bespoke funds, "conservative, balanced and growth". I've basically found superlife to be second cheapest but with far more investment options for kiwisaver like just investing in the S&P500, or total world.

[BeeBop]

I prefer managed funds when going for a specific target e.g. I have BG's Monks Investment Trust as a balanced way to get access to Alibaba, Amazon, and Alphabet.

[alistar_mid]

I prefer managed funds when going for a specific target e.g. I have BG's Monks Investment Trust as a balanced way to get access to Alibaba, Amazon, and Alphabet.

does that have a fund for each letter of the alphabet - ie an "A" fund where you get companies starting with A?

[BeeBop]

does that have a fund for each letter of the alphabet - ie an "A" fund where you get companies starting with A?

Excellent observation! To add further, they also have Athem Inc and AIA....I won't destroy the pattern by naming the other six top holdings.

[GTM 3442]

does that have a fund for each letter of the alphabet - ie an "A" fund where you get companies starting with A?

For names, I quite like the "themed" funds run by Janus in the USA - FIT, OLD, etc

https://www.janus.com/products/exchange-traded-funds/thematic

[BeeBop]

Themes are actually quite good as they do allow you to focus on an area and have a degree of risk management within it. I am selecting funds (for my UK portfolio) that meet current growth areas e.g. Have picked up Jupiter India, looking to pick up a European focused growth (general), and of course, I bought into Monks to get a bite of the internet based growth (with managed exposure, return this year just a tad under 60%). As I love small cap stocks, I purchase them directly myself. I will take a look through the Janus link to see how they are putting their themes together. Having these managed funds means I can release time allowing me to work on my small cap (UK) and NZ portfolios where I can navigate the information!