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  1. #161
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    All of the tax goes to themselves. No brainer to be investing heavily in the super fund.

  2. #162
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    Quote Originally Posted by Panda-NZ- View Post
    All of the tax goes to themselves. No brainer to be investing heavily in the super fund.
    The government does get a nice amount of tax from The Super Fund ($2.3 Billion last year) and from Kiwisaver accounts too of course.

    Just 4% of its assets are in NZ equities. I wonder, is that the lowest percentage of any nation's sovereign fund invested in its own country's equities? All while so many successful NZ companies end up relocating to Australia to access funding....

    It seems the Superfund invests more into NZ land if I understand the breakdown correctly!

    https://www.nzsuperfund.nz/news-and-...annual-return/
    https://www.stuff.co.nz/business/126...allenges-ahead
    Last edited by Bjauck; 15-09-2021 at 07:15 AM.

  3. #163
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    Quote Originally Posted by Bjauck View Post
    The government does get a nice amount of tax from The Super Fund ($2.3 Billion last year) and from Kiwisaver accounts too of course.

    Just 4% of its assets are in NZ equities. I wonder, is that the lowest percentage of any nation's sovereign fund invested in its own country's equities? All while so many successful NZ companies end up relocating to Australia to access funding....

    It seems the Superfund invests more into NZ land if I understand the breakdown correctly!

    https://www.nzsuperfund.nz/news-and-...annual-return/
    https://www.stuff.co.nz/business/126...allenges-ahead
    Don't leave out the most important aspect of the Superannuation Fund in the previous linked article:

    "its funding model means that over time Government contributions tend to offset tax paid. Government contributions to the fund over 20201/21 were $2.1 billion with the total tax paid by the fund in the 2020/21 year was $2.3 billion."

    So essentially the Superannuation Fund operates on a tax free basis. On the other hand with Kiwi Saver, unlike individuals over in N. America, there is no tax credit to the person in NZ contributing to Kiwi Saver. I will go to say both funds are not even comparable.

    Capital flows all over the world and NZ should NOT be the only place to consider for any investor. Particularly those KS funds and NZ brokers that are promoting investment in NZ equities. The historic performance of the NZ Superannuation fund is proof that investments in US growth equities does far better than keeping your $ in NZ. Yet in industry, NZ financial advisors and brokers tend to have a different point of view. After all, they get nothing out of it when clients choose to buy US stocks or ETFs.

  4. #164
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    If our stock market was as mediocre as the ASX (0% gain since 2007 vs 400% for NZX) I'd agree.

    In a perfect world there would be no local bias. It will bring new currency into the country when the gains are realised.
    Last edited by Panda-NZ-; 15-09-2021 at 09:20 PM.

  5. #165
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    Quote Originally Posted by SBQ View Post
    Don't leave out the most important aspect of the Superannuation Fund in the previous linked article:

    "its funding model means that over time Government contributions tend to offset tax paid. Government contributions to the fund over 20201/21 were $2.1 billion with the total tax paid by the fund in the 2020/21 year was $2.3 billion."

    So essentially the Superannuation Fund operates on a tax free basis. On the other hand with Kiwi Saver, unlike individuals over in N. America, there is no tax credit to the person in NZ contributing to Kiwi Saver. I will go to say both funds are not even comparable.

    Capital flows all over the world and NZ should NOT be the only place to consider for any investor. Particularly those KS funds and NZ brokers that are promoting investment in NZ equities. The historic performance of the NZ Superannuation fund is proof that investments in US growth equities does far better than keeping your $ in NZ. Yet in industry, NZ financial advisors and brokers tend to have a different point of view. After all, they get nothing out of it when clients choose to buy US stocks or ETFs.
    I am not sure if I would call the superfund operating a tax-free basis. The original capital came from tax receipts, its income is taxed again and subsequent capital contributions come from tax receipts too.

    I agree that NZ should not be the only place to consider for investments. I think NZ should figure more highly than it does for a NZ pension fund. However the small allocation to NZ shares just reflects the share market's relative position for investment in NZ

  6. #166
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    Wife and I are mid 30s and both in KiwiSaver.

    Have own home, a rental property, around 150k combined in KiwiSaver and 20k in a managed index fund.

    So all up 170k in index funds across 3x accounts. They are all invested into Superlife TWF total world fund with from memory 8000+ companies invested in.

    In lieu of the previous comments is there any reason to invest some of this into NZX50 indexes instead?

  7. #167
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    Quote Originally Posted by Panda-NZ- View Post
    If our stock market was as mediocre as the ASX (0% gain since 2007 vs 400% for NZX) I'd agree.

    In a perfect world there would be no local bias. It will bring new currency into the country when the gains are realised.

    I'm not sure it is as clear cut as that. The NZX50 has ostensibly outperformed the ASX200 by far on a price basis, but then the former presupposes the reinvestment of dividends, while the latter does not (like most major indices). The total return on the ASX200 has trailed the NZX50 by two to three pre cent per annum on a five and ten year basis (I'm not sure about since 2007 in particular) - which is still a notable difference on a compound basis.

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