Blog

Nicola Hines

Nicola Hines

Perils of the passive strategy

Posted in Kiwisaver, Savings on

There has been a huge amount of media commentary on the relative merits of active versus passive investing, particularly in relation to KiwiSaver funds. Most media commentators, including Weekend Herald columnist Mary Holm, argue that passive KiwiSaver funds are better because they are cheaper. Holm maintains that active funds underperform passive managers on an after-fee basis, mainly based on United States research, and she repeatedly encourages individuals to invest through passive funds rather than active funds. But this debate should also include an assessment of fund managers as financial intermediaries. The argument should not be about fees only.

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Henry Tongue

Henry Tongue

SuperRatings Releases 2017 Kiwisaver Ratings

Posted in Kiwisaver on

SuperRatings has now released its formal 2017 ratings, awarding seven schemes its highest Platinum rating. Now in its fourth year of rating the KiwiSaver system, SuperRatings recognises that substantial improvements have been made over the year in terms of member engagement and servicing, albeit the challenging investment environment has resulted in subdued returns for many KiwiSaver members and the race to the bottom on fees remains particularly concerning.

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Sam Goldwater

Sam Goldwater

Members may lose the ‘race to the bottom’ on fees, researcher warns

Posted in Kiwisaver, Savings on

A new analysis has debunked the assumption that low fees inevitably equate with better outcomes for KiwiSaver investors. In fact, the study, released by Australian research house SuperRatings last week, found there was “often an inverse relationship between fees and investment outcomes achieved by members”.

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Ryan Edwards

Ryan Edwards

KiwiSaver relief for quake-affected

Posted in Kiwisaver on

Commerce and Consumer Affairs Minister Paul Goldsmith has announced relief for KiwiSaver members who are suffering financial hardship following the November 14 earthquakes, by making it easier for them to withdraw their funds.

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Age appropriate KiwiSaver with 'life stages'

Posted in Kiwisaver on

Generate's new 'life stages growth' option has been featured in an article from Stuff. "By offering life stages growth we think we can meet a demand that is not currently being catered for. "We estimate a 30-year old using life stages growth will have approx 10 per cent more at retirement than ordinary life stages." "This could translate into tens of thousands of additional dollars by retirement."

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Henry Tongue

Henry Tongue

Social responsibility a rising priority for funds

Posted in Kiwisaver on

SRI is a generic term that combines the financial objectives of investors with environmental, social and governance (ESG) issues. This is based on the concept that companies which place a great deal of importance on ESG issues will achieve superior financial returns. The problem with implementing SRI is that we all have a different view of how the world can be improved. Many investors do not want to support certain products, including armaments, tobacco, alcohol and gambling facilities, while others are concerned about a number of broader issues including the impact of businesses on the environment and the widening gap between senior executive remuneration and wage earners.

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Nicola Hines

Nicola Hines

KiwiSaver guidelines needed

Posted in Kiwisaver on

Recent media reports could give the impression that KiwiSaver has major problems, particularly fee gouging and illegal investment strategies. KiwiSaver should be subject to media scrutiny but most of the recent commentary has been sensationalist and misguided. The retirement savings initiative has been a huge success, partly because individuals have personally contributed only $13.7 billion to a scheme that is now worth $35.1b according to Reserve Bank figures.

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Sam Gapes

Sam Gapes

Why are KiwiSavers saying no to money?

Posted in Kiwisaver on

Figures from the Inland Revenue department show 579,832 adults did not receive any government subsidy in the year to June 30 meaning they put no money into their account. A further 609,141 put in some money but not enough to gain the full subsidy meaning they contributed less than $1043 over the year.

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Admin

Admin

Generate’s New Product Disclosure Statement

Posted in Kiwisaver on

We have recently lodged a Product Disclosure Statement (PDS) on the Disclose Register, which you can view here: www.business.govt.nz/disclose. As part of transitioning to the Financial Markets Conduct Act this PDS will replace our current Investment Statement from 8 September 2016. Members will receive more information about this in the near future. Kind regards, The Generate Team

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Ryan Edwards

Ryan Edwards

Wonderfully Flawed

Posted in Kiwisaver on

Many more of us should be getting the $521 each year that we're entitled to if we put in $1,043 ourselves. Over the next year that works out to putting in a bit more than $20 a week in order to get $10 on top of that. Those of us who do this regularly - such as anyone earning at least $34,762 a year and putting in the minimum 3% - are already getting the government money. Nothing more to do. But if we're on a contributions holiday, or if we're in part-time work or self-employed, we could miss out.

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