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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