Comparing kiwisaver scheme performance

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Forums › Finance and wealth management › Comparing kiwisaver scheme performance

nzkc

1572 posts

Uber Geek

#34137 19-May-2009 10:58

Hi All,

As Kiwisaver has now been going for a wee while (over a year) I thought I'd have look at how the various schemes are performing. And that's where my problem lies...that and the fact I'm too lazy to go through EVERY provider individually.

Does anyone know of a website that compares the schemes easily? Specifically I'm looking to compare the returns over the year(s) after fees are withdrawn. Basically I want to find out "where should I put my money"?

I've tried Fundsource but didnt really get too far there. Garath Morgan have a good overview here http://www.gmk.co.nz/Pages/Content.aspx?PID=68&ref=fp which would suggest they're doing very well...but I'm always cautious of info from a source that has an interest in your custom. Are there any independent ones?

Is this an opportunity for me to go off and start up my own website?

Cheers
nzkc

magu

Professional yak shaver
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#215861 19-May-2009 11:42

http://www.sorted.co.nz should give you some information.

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ockel

2031 posts

Uber Geek

#215866 19-May-2009 11:56

Its not comprehensive but Morningstar do a 6-monthly survey.

http://www.morningstar.net.nz/

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aperfectcircle

62 posts

Master Geek

#215886 19-May-2009 13:03

I'd say be very cautious using past performance as a decision making guide, as any (good) financial advisor will tell you: past performance is no indicator of future fund performance! The current state of global financial markets probably makes that statement more relevant than ever.

Dawg

233 posts

Master Geek

#215889 19-May-2009 13:10

Just for an update i'm with GMK and there reporting on where your money is invested is pretty good.
I get regualr updates from them & And I can see that I own .01% of a share in google with my fund. So I have no complaints there.
My wife is currenty with a default provider & very little information back in comparison (Can't remember the provider, ), so not so impressed - Will be moving her over to GMK soon.

Just my 2c worth

nzkc

1572 posts

Uber Geek

#215893 19-May-2009 13:34

aperfectcircle: I'd say be very cautious using past performance as a decision making guide, as any (good) financial advisor will tell you: past performance is no indicator of future fund performance! The current state of global financial markets probably makes that statement more relevant than ever.

Yep..well aware of this. But unfortunately I dont yet see a way to be able to compare future performance

There are other reasons I'm looking and as "Dawg" has said I'm not happy with the level of reporting I'm getting either.

So I've decided I'm shifting provider...I'm yet to decide who to.

magu

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#215895 19-May-2009 13:38

nzkc:
aperfectcircle: I'd say be very cautious using past performance as a decision making guide, as any (good) financial advisor will tell you:? past performance is no indicator of future fund performance!? The current state of global financial markets probably makes that statement more relevant than ever.

Yep..well aware of this.? But unfortunately I dont yet see a way to be able to compare future performance

When you do, be sure to let us know!

"Roads? Where we're going, we don't need roads." - Doc Emmet Brown

Ragnor

8223 posts

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#215902 19-May-2009 13:47

This comparison is good also...
http://www.interest.co.nz/directory-kiwisaver.asp

I've been tossing up over Huljich or Gareth Morgan myself. Huljich is producting bigger returns (14% since inception) but has higher fees and keeps what they are investing in secret,

Gareth Morgan has lower fees, more open about where your money is invested however lower returns.

The consumer org's kiwisaver site is worth a look too:
http://www.consumersaver.org.nz

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bazzer

3438 posts

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#215915 19-May-2009 14:08

I would go with the worst performing fund. Theyre bound to be the best next time! ;)

grant_k

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#215998 19-May-2009 17:09

Dawg: Just for an update i'm with GMK and there reporting on where your money is invested is pretty good.

I get regualr updates from them & And I can see that I own .01% of a share in google with my fund. So I have no complaints there.

+ 1

I am with GMK also and have been really impressed by the detailed reports, and the transparency concerning their investment strategy. Sure, the Growth Fund (which I am in) has taken a bit of a hit, but much less than other similar funds operated by other providers because Gareth kept a large holding in cash until the worst of the falls were over.

If you are worried about market volatility, go for the Conservative Fund which is still showing a positive return in spite of all the market turmoil. However, if time is on your side (15+ years till retirement) then the Growth Fund is probably where you should be depending on your appetite for risk vs. return. It's impossible to say for sure, but going by the history of the markets for the past 100+ years, Shares are likely to outperform Bonds which are likely to outperform Cash over the long term. The GMK Growth Fund concentrates on Shares, although has retained a heavy Cash component and even some Bonds during the recent market turmoil.