Another Kiwisaver comparison using 'value of money' assessment considering both fees and investment return (rather than sole focus on fees) http://www.superratings.com.au/kiwisaver
Superlife (my provider) only made Silver (bottom 50%) so I may have to investigate other options
Another Kiwisaver comparison using 'value of money' assessment considering both fees and investment return (rather than sole focus on fees) http://www.superratings.com.au/kiwisaver
Superlife (my provider) only made Silver (bottom 50%) so I may have to investigate other options
May not continue to underperform though. You might risk jumping out to one that has just had its good spell, and miss the upturn in Superlife.
Tbh most seem pretty lazy, they just stick all the cash into the vanguard ETFs
I think any provider offering international equities exposure at low cost is on the right track. The website is fresh and I hope they do well.
From their Product Disclosure Statement:
This is the only thing missing however. Save yourselves money and offer clients the higher reward/higher risk option of no hedging - unhedged portfolios will outperform any of the other current Kiwisaver portfolios long term.
You're already superior to Smartshares with your international equities/low cost offering. Now you could beat KiwiWealth/Gareth Morgan (who benchmark 50% hedged/50% unhedged of their 85% international equity exposure) by offering 0% hedged.
Even better would be a service that let the client choose level of hedging...
Nothing to add to the KS debate - but the comment above about unhedged global portfolios outperforming is incorrect on an historic basis. Over any meaningful timeframe hedged has outperformed unhedged, for NZ investors. This can be verified very easily by comparing global providers where those providers offer the same underlying product on a hedged and unhedged basis. No comment on future returns but the historic data is there for anyone to see.
Nothing to add to the KS debate - but the comment above about unhedged global portfolios outperforming is incorrect on an historic basis. Over any meaningful timeframe hedged has outperformed unhedged, for NZ investors. This can be verified very easily by comparing global providers where those providers offer the same underlying product on a hedged and unhedged basis. No comment on future returns but the historic data is there for anyone to see.
You don't mention it, but the reason for this historic outperformance is caused by the higher short term interest rates in NZ capital markets when compared to overseas markets - this is known as the hedge premium or carry.
In order to gain from this trend the trade off is exposure to increased short term volatility caused by the positive correlation with NZD and equity markets.
I talked to a couple of KiwiSaver providers and most took a high conviction view that the short term downside risk was worth the hedge premium over the longer term.
I have transferred my kiwisaver to Simplicity - very low fees and index tracking attracted me. I am in the process of transferring my wife's kiwisaver as well. They now have 4500 members and 115 million under management (approximately $25,500/member) which is not bad for a new small kiwisaver provider.
I'm with Aon Russell Lifepoints, but not set exactly to my age but as if I was ten years younger so that it stays growth oriented a bit longer.
As per the latest morningstar report they consistently perform. Fees are slightly high yes.... oh well never mind.
I have transferred my kiwisaver to Simplicity - very low fees and index tracking attracted me. I am in the process of transferring my wife's kiwisaver as well. They now have 4500 members and 115 million under management (approximately $25,500/member) which is not bad for a new small kiwisaver provider.
I have just moved mine acrross to. Will give them a year, then compare to the wifes, then chat with her about moving hers.
I have just moved mine acrross to. Will give them a year, then compare to the wifes, then chat with her about moving hers.
Same here. I've moved to Simplicity from Milford - I will be interested in how the results (AFTER fees) compare. I might also move the children from ASB but it is a bit more hassle for minors and I'm not sure I won't everyone's KS in the same boat.
Got my latest Tax Certificate from Super Life with which I have my Kiwisaver Growth Fund. Total fees paid p.a. are $427.50. Seems reasonable but how does it compare to some of yours?
Bookmarks