NZ Managed Fund recommendations

[steve9]

If you had a pick a few NZ funds to manage your money who would be in the list? Looking at NZ and AU equity focus.

[stoploss]

If you had a pick a few NZ funds to manage your money who would be in the list? Looking at NZ and AU equity focus.

Check out piefunds.co.nz

[kiora]

"Match racing: NZ PIE funds vs US ETFs
Tweet
Some commentators point to the low fee structures of US ETFs and question why an investor or adviser would even consider NZ managed fund solutions. The purpose of this article is to provide a “real life” comparison of a PIE fund against US equity ETFs with similar exposure. Is one structure better?"
https://www.goodreturns.co.nz/articl....html#comments

[GTM 3442]

"Match racing: NZ PIE funds vs US ETFs
Tweet
Some commentators point to the low fee structures of US ETFs and question why an investor or adviser would even consider NZ managed fund solutions. The purpose of this article is to provide a “real life” comparison of a PIE fund against US equity ETFs with similar exposure. Is one structure better?"
https://www.goodreturns.co.nz/articl....html#comments

That's a really interesting article.

I found it quite strange and more than a little frightening that the effect of various countries' RWT rates have on the returns of investment funds is essentially ignored by the New Zealand financial services industry.

If you want a water fund, why not pick the one domiciled in Ireland?

[fungus pudding]

That's a really interesting article.

I found it quite strange and more than a little frightening that the effect of various countries' RWT rates have on the returns of investment funds is essentially ignored by the New Zealand financial services industry.

If you want a water fund, why not pick the one domiciled in Ireland?

It's worth noting that top tax rate is about to jump from 33 to 39% - giving a massive advantage to PIEs.

[kiora]

Is this going to make investing decisions easier or?

Fees higher?

More gobbly gook?

More difficult to make investment decisions?

Higher fees?

https://www.goodreturns.co.nz/articl...for+8+Jan+2021

[SBQ]

That's a really interesting article.

I found it quite strange and more than a little frightening that the effect of various countries' RWT rates have on the returns of investment funds is essentially ignored by the New Zealand financial services industry.

If you want a water fund, why not pick the one domiciled in Ireland?

The comment in that article had summed RWT quite well and look in the comment section for : "On 14 June 2017 at 9:38 am Anthony Edmonds said:"

My response below:

There's also no mention of the $50K FIF threshold. If a small time investor started with $10K and somehow over 5 or so years it grew to just under $50K, all those gains would be tax free. The minute a person makes contribution to a Kiwi Saver Fund, PIE fund, or some investment scheme where the fund has to pay RWT for their clients every year (even on years where they go negative), they are going to be in a worse position than to simply invest on their own, buy purchasing the same asset / ETF.

Lots of posts I see on my FB about the FMA spewing all sorts of "get sorted on financial advice" when that article makes no mention on taxation from different perspectives. This is no different few years ago when I called upon local NZ financial advisors who could not give me a clear indication on taxation and instead, would gladly refer my case to a 'tax specialist' so they can take their cut.

[GTM 3442]

The comment in that article had summed RWT quite well and look in the comment section for : "On 14 June 2017 at 9:38 am Anthony Edmonds said:"

My response below:

There's also no mention of the $50K FIF threshold. If a small time investor started with $10K and somehow over 5 or so years it grew to just under $50K, all those gains would be tax free. The minute a person makes contribution to a Kiwi Saver Fund, PIE fund, or some investment scheme where the fund has to pay RWT for their clients every year (even on years where they go negative), they are going to be in a worse position than to simply invest on their own, buy purchasing the same asset / ETF.

Lots of posts I see on my FB about the FMA spewing all sorts of "get sorted on financial advice" when that article makes no mention on taxation from different perspectives. This is no different few years ago when I called upon local NZ financial advisors who could not give me a clear indication on taxation and instead, would gladly refer my case to a 'tax specialist' so they can take their cut.

I'm sorry, was it not clear that I was referring to non-NZ taxes, i.e. the tax which the fund paid in its country of domicile?

[GTM 3442]

All part of the slow creep toward shutting individual investors out of everything except KiwiSaver, mortgaged property, and term deposits.

For their own good, of course.