Pie funds

[Aaron]

Portfolio Investment Entities (PIEs) sadly I don't like to speak poorly of something introduced by Labour but the Government’s(Michael Cullen's) purpose in enacting the regime was to ensure that tax issues were not an impediment to New Zealanders saving for their retirement via its flagship KiwiSaver initiative.

I guess the idea was to set your PIR rate and forget about it as you then did not need to include it in your income tax return. Still valid if you have the right PIR but it was always wrong that if you had a PIR too low you had to return the income and pay the tax shortfall BUT if your PIR rate was too high you could not get the excess tax refunded. Looks like it will take another Labour government to fix this injustice.
https://www.stuff.co.nz/business/113...nt-tax-refunds

With all the talk about Twyford cocking up Kiwibuild I honestly prefer it too denying that there is any housing crisis. Someone trying to do something and cocking it up is better than doing nothing. Although that said I am not sure what it is costing us all from our tax dollars.

[stoploss]

Interesting move from PIE funds .... 60 % in cash in the "Growth" fund , but they are taking more on board .....
https://www.goodreturns.co.nz/articl...sed-funds.html

[Leftfield]

Interesting move from PIE funds .... 60 % in cash in the "Growth" fund , but they are taking more on board .....
https://www.goodreturns.co.nz/articl...sed-funds.html

Thanks for posting.

This statement possibly explains their move. "It's hard to know why they're reopening their funds now. I doubt it's because of the view that there's a greater amount of opportunities to invest in because they have such a significant amount of cash they must be relatively pessimistic abut the market at the moment."

[bull....]

think there high cash position is affecting there returns , other competitor funds performance are out performing them who are more invested.

[Jaa]

Thanks for posting Stoploss and agree Bull, they have under performed for a few years now. Even over the last 5 years, their best performing fund, the emerging company fund has under-performed the NZ Mid Cap ETF by 4% per year.

They not only have giant cash positions but downside protection via derivatives. Also changed their fees recently to increase the base fee and remove performance fees, no doubt in anticipation of a market downturn. Paying a 1.85% fee on cash will soon produce negative returns.

As an investor, quite annoyed to find out the funds are open again via here and Good Returns and not directly from PIE Funds.

[Lego_Man]

think there high cash position is affecting there returns , other competitor funds performance are out performing them who are more invested.

Well naturally, but you are paying them for their active management ability which includes trading and timing, not just stock selection.

[bull....]

Well naturally, but you are paying them for their active management ability which includes trading and timing, not just stock selection.

but as jaa mentioned the active management is not out performing. if the markets had tanked the high cash position would have out performed but the markets have roared higher. who knows what happens next might tank or might go higher but someone is usually on the wrong side of the market.

[kiora]

but as jaa mentioned the active management is not out performing. if the markets had tanked the high cash position would have out performed but the markets have roared higher. who knows what happens next might tank or might go higher but someone is usually on the wrong side of the market.

Sometimes it best to be balanced by covering both sides of the market

[Joshuatree]

Yep i sleep easy at night knowing they are protecting my stellar gains over many years. Interesting vid below,tech is where its at especially in out of favour Europe and the UK where sentiment is poor and pricing great. The USA mkt has out performed longterm due to its high % of tech based companies.Europe is only getting going now being manufacturing based.
WATCH VIDEO

[bull....]

Pie Funds founder disappointed strategy hasn’t worked


Pie Funds is closing its Multi Strategy Fund, citing poor returns.


https://www.goodreturns.co.nz/articl...-t-worked.html

not surprised when your going to play long and short and include the US markets in the mix you need someone who understands the US markets and follows it all the time. clearly they had the wrong people.

In reality it was only ever a long equity fund anyway most of the time