https://mindfulmoney.nz/ is a new tool looking to cover ethical investment but also returns
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https://mindfulmoney.nz/ is a new tool looking to cover ethical investment but also returns
Simplicity also offering lower interest home loans
"To celebrate, we're now offering first home loans charging just 2.95% interest.
How can we do it? It's simple.
Currently, all our KiwiSaver and Investment funds have some investments in bank deposits.
The banks then lend those deposits as home loans, making huge profits.
By offering first home loans directly to our members, we're cutting out the middleman.
And because the interest paid to us by borrowers will be higher than bank deposit rates, returns to KiwiSaver and Investment funds should be higher.
And lending directly to our members will make their first homes easier to afford."
I switched to Simplicity a few months ago and while it is obviously early days, I am very impressed and very happy with my decision. They are a bunch of down to earth, genuine people who are passionate and dedicated and their communications and customer service are excellent. Their home loan announcement today, is too late for me, but I will be encouraging my adult children to seriously consider switching to Simplicity.
Also interesting to note that the 2.95% rate will be floating rather than fixed. They mentioned in one of their videos they aim to undercut the lowest fixed rate on offer by at least 20%
If I was looking for my first home i'd definitely be keen to take on this offer!
Latest QTR Kiwisaver reports out .
Juno aka PIE Funds has taken out # 1 in the Growth category ...not bad going in their first year .
https://cdn.morningstar.com.au/mca/s...ey-Q3-2019.pdf
Interesting reading. I swapped from Kiwi Wealth to Simplicity at the start of the year after very poor performance by Kiwi Wealth in the previous 12-18 months. I note from reading this that they continue their poor performance. Seems to have gone downhill after Kiwibank bought out Gareth Morgan
What I don't like, the disclaimer:
* Performance numbers supplied directly from the provider rather than calculated independently by Morningstar.
A lot of information missing such as are the returns net of taxation, PIR 28%? FIF? Otherwise the reported returns can only be taken as a 'gross' figure quoted below:
"Average multisector category returns over the September quarter ranged from 2.9% for the Growth category to 2.2% for the Conservative category."
LONG term performance is key and while i'm being repetitive, Warren Buffet pointed out in the past that managed funds do not beat buying the index returns over a long term period. He won a wagered bet that they could not beat the S&P500 index. What i'm seeing in NZ is more $ is wasted on managed funds, administration fees, etc. via 'salesmanship' than actual returns to investors. I'm not seeing transparency in any of these NZ based fund when compared to say buying real estate in NZ. One thing is certain though, that $60B in Kiwi Savers invested gives IRD the ticket to tax all these funds (while the FMA basically locks out NZ retail investors out by directly buying ie an S&P500 Vanguard ETF through a US broker.
Adding to my last post, the last paragraph in the survey says it all:
"Investors may notice differences between the returns published in this survey and those they see elsewhere. There are several possible reasons for this. First, the returns published here are after fees but before tax. Second, we take the associated tax
credit into consideration when calculating and publishing these returns, while some fund managers base their published performance figures on month-end unit prices only. "
YEP
Numerous people agree with this. Great you tube presentation from "Cramer" from mad money on the same subject.
Swapped last month from Kiwi Wealth to Simplicity. In the past GMI held a significant portion of Vanguard ETF, but this has now disapeared as has the leading performance of this fund, now struggling to hit thier own published benchmark.
Wish I could buy the ETF directly.
thanks for the link, otherwise I wouldn't have read it. Re Growth funds, That No 1 fund Juno, is tiny, and new , still got pimples , so irrelevant to me. Simplicity doing well but only 3 years under the belt. Fisher doing well currently but ranking drops over the longer periods. Look at Milford Active !! I knew I should have chosen them but...
I'm with Aon Russell 2045 only doing average for the year but 5th over a 10 year period. Yes their fixed fees are a little high, I know I should care about this but I just cant. Its fixed so becomes less and less a big deal.
I like the option of choosing the year for redemption so you don't have to go from growth to balanced as time passes. That said 2045 is too far out but what I wanted.
How's people's kiwisavers doing last few days...?
:cool:
.^sc
The more compelling issue is, are those managed fund patient enough to accumulate cash to take advantage of this week's crash? In prior years analysts were critical of Buffet hoarding too much cash in Berkshire - now around $130B. Now the table has turned around so we will see who will win. :cool: