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

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/ 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 off

My 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.