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TechnoGuy001

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#311839 19-Feb-2024 14:31
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I like there fund options, the S&P500 and Global 100 or there High Growth fund all have pretty great returns. 

 

Even when compared to say Milford (which I think is probably one of NZs best providers for balanced/growth fund return)

 

 

 

Obv past results don't guarantee future returns, but they seem to have some promising options, with low fee's. (similar to Simplicity, another index Kiwisaver, but Kernel, so far, has better returns)

 

 

 

Anyone been with them for a few months/year? What has your experience been like?


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duckDecoy
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  #3197496 19-Feb-2024 14:41
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Not addressing the OPs question.  But

 

I always wonder how organisations with index funds can have different returns when their index funds seem to be pretty much the same.

 

 


 
 
 

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TechnoGuy001

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  #3197550 19-Feb-2024 15:04
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Edit: Also, you gotta be careful you're comparing apples to apples, e.g. the same time period, and inc/ext the same things, like tax (same rate too) and fees. Also check both returns are p.a. (Milford like to show total return sometimes, not p.a. for example)

 

There are so many pitfalls when comparing funds. Which is why I tend to use Sorted or mindfulmoney, at least most of it's accounted for. Also can use the companiesoffice.govt.nz, but it's not super user friendly and kinda slow.

 

 

 

I can probably answer that, it's probably because they're following a different index, there a 1000s of them, allot very similar, some just exclude stuff like war stocks, or filter for ESG etc.

 

You can see how it's structured in the SIPO file, which is on the companiesoffice.govt.nz/disclose site.

 

Some index funds on Kernel or Simplicity are mostly 1:1 to the index, but others like the Kernel High Growth Fund, is a mix of different index funds.

 

On reddit, it's well known that Simplicity for example have a pretty heavy weighting on NZ in there growth fund, there as Kernel, at least a the moment isn't.

 

 

 

 

The site also shows some unbiased fund returns. Just click on "Search for an offer" and type in the company name, select the fund and go to the "Investment Option" tab. (the below is for the kernel growth fund)

 

 

 

 

At least this is my understanding. I am by no means an expert, and if anyone else can elaborate, please do.


wellygary
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  #3197559 19-Feb-2024 15:22
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TechnoGuy001:

 

I like there fund options, the S&P500 and Global 100 or there High Growth fund all have pretty great returns. 

 

 

Global markets are pretty much on a huge tear at the moment, on the premise that Fed rates have peaked and will be coming down soon-ish..

 

Pretty much all the indexes are at record or near record highs, 

 

Its really easy to post great numbers in such an environment,  esp if you are a new fund provider.

 

The real fun comes when markets fall/ there is a recession..

 

Kiwisaver is a 40 year investment horizon.. so don't get blinded by huge returns at this stage of the cycle..

 

They will not be the norm over a lifetime of investing...




TechnoGuy001

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  #3197568 19-Feb-2024 15:46
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Yeah, this is true. I try not to flip flop between Kiwisaver companies or change funds. I'm fairly young, and plan to stick in the growth / high growth fund/s till closer to retirement/house.

 

I'm not expecting 32 or 18% to continue. Long term, like 10+ years I'm hoping for around 10%, I know Milfrod's Active Growth Fund has done a little over that, since inception they've done 11.58% p.a. which is still great. But they've been around since 2007, about 17y.

 

I'm just a little weary about active investing for looong term, which is why I'm interested in the likes of Kernel or Simplicity. Low fee, passive and still decent returns.

 

 

 

Just compering some ETFs (ex BRK.A and OOI index), over 2007-10-01 to 2024-02-01 (same run time as Milford's growth fund).

 

Obv the returns here are ex some costs NZders will incur to invest in them. (and they're more aggressive then some growth funds here, and less diversified)

 

There is risk in everything in the end of the day. Just kinda thinking out loud now.

 


JimmyH
2848 posts

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  #3197605 19-Feb-2024 16:46
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Also, a key note of caution - previous performance is NOT a predictor of future performance. Just because a fund was at the top of the pack next year doesn't mean it will be next year.

 

My advice is to look at who is running the fund, what their investment philosophy is, and what they are investing in (which market(s), index/indices, active or passive, risk profile etc). Only put your money in if you are personally comfortable with all three of these.


marpada
450 posts

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  #3197633 19-Feb-2024 18:52
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Additional opinion on Kernel https://moneykingnz.com/whats-inside-money-king-nzs-investment-portfolio-2024/


TechnoGuy001

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  #3197675 19-Feb-2024 21:35
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marpada:

 

Additional opinion on Kernel https://moneykingnz.com/whats-inside-money-king-nzs-investment-portfolio-2024/

 

 

Daamn, that's just out today too. Thanks for the link. Just gave it a read. Pretty interesting.


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