Passive Kiwisaver Fund that tracks Index

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Forums › Finance and wealth management › Passive Kiwisaver Fund that tracks Index

brendand

20 posts

Geek

#38952 6-Aug-2009 16:37

I've been doing some reading about managed funds, and it turns out the majority of actively managed funds rarely outperform their index fund counterparts over an extended period of time. Some good reading about the advise that the guys at google recommended to their employees can be found here http://www.sanfranmag.com/story/best-investment-advice-youll-never-get

I'm looking at investing for about 35 year timeframe. I want to invest in a Kiwisaver fund that is 100% shares, but not actively managed. I'd like to find one that tracks an index, ideally the MSCI World index which would give me a well diverified portfolio, but should have low mangament fees.

Any idea if there is a kiwisaver fund like this? Or are they all underperforming actively managed funds.

Brendan

wellygary

8333 posts

Uber Geek

#243566 6-Aug-2009 16:52

http://tinyurl.com/myosoa :)

brendand

20 posts

Geek

#243576 6-Aug-2009 17:11

Thanks for that. However "tracker" funds don't appear to be true index funds.

First Choice Growth Tracker (Sovereign, ASB) is 20% invested in cash and fixed interest.
What's the point of cash and fixed interest in a growth fund, unless you are putting cash aside to take advantage of investments opportunities (which is not index style behaviour).

First Choice Active High Growth is 100% invested in equity, but it is active style which in the long run will probably under perform (as it is at the moment).

brendand

20 posts

Geek

#243606 6-Aug-2009 18:15

Apparently NZX might be planning to launch a kiwi saver fund like what I want. "...at a later stage there could be new Smartshares launched tracking global sharemarkets"

http://www.stuff.co.nz/sunday-star-times/business/money-story-archive/earlier-money-stories/44811/NZX-enters-fee-stoush

Ooops, missed the bit about it being 2007. Too bad.