Best fund managers?

Hi all.
Appreciate advice on fund managers. The recent ructions make me think maybe I should put part of our $ under the care of a fund manager as part of diversification. I have had NZ Funds and Jardines recommendations. Any thoughts welcome. Thank you

Don't take this as advice, but I have some funds with Simplicity. They charge 0.1% mgmt fee plus $20 annual membership fee on the NZ Share fund, which is the lowest I have come across. Some useful diversification at a very low cost.

The theory is that passive funds out-perform active managers over time. And I think that is true so investing through Simplicity etc is sensible.

However the active managers say that in uncertain times their research is valuable and they can react quickly. If good news affects a share, the managers buy it fast because they know the funds (ETF, Index) must buy that share = upwards price pressure. The managers sell when they think the gain is enough. Apparently A2 Milk is a good example. Often the share will drop back down later on.

I'm persuaded that active management makes sense at this time. I have talked to Milford for the last 18 months but done nothing because a correction was likely. Now is a good time to be brave for me. Or I'll continue to just worry and ponder things.

I agree Winston. Prior to 2020 everything I held was passive, but have since moved a chunk into actively managed fund (PIE Australasian Dividend Fund).

What do you think a fund manager can do that you can't?

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Originally Posted by GTM 3442

What do you think a fund manager can do that you can't?

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The thought behind it I simply do not know enough about world markets to safely (in my eyes) invest. One would presume that the big boys have access to far more info than I do. A friend last night mentioned that getting Jardins involved may also assist with market fund raising here in NZ eg the AIA one recently, Jardines clients got early notice and the ability to buy $5 something for $4 something. Appreciate everyones input

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Originally Posted by Simsee

The thought behind it I simply do not know enough about world markets to safely (in my eyes) invest. One would presume that the big boys have access to far more info than I do. A friend last night mentioned that getting Jardins involved may also assist with market fund raising here in NZ eg the AIA one recently, Jardines clients got early notice and the ability to buy $5 something for $4 something. Appreciate everyones input

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They're two different things.

Jardens are a broker who will give you advice and access to markets, but they're not fund managers as such.

So you would use Jardens (or whoever) to buy the stuff if it's traded on an exchange which they have access to.

And you could use Jardens (or whoever) to access New Zealand IPOs, bond issues, and capital raisings.

And Jardens (or whoever) will be only too happy to provide advice and other services.

All at a price.

As for the fund managers, that's a different kettle of fish entirely. You have to decide what to invest in, and where to invest in.

Then pick who to invest with.

Lots of people will happily sell you lots of advice, and lots of people will happily clip the ticket to implement whatever it is that you want to do.

Good luck. . .