Managed Funds

The following is a selection of articles mainly from January 2005 to the present. To explore this topic in more depth and access earlier columns, please use the search box.

Articles

NZ Herald 24 November 2012

Q&As: Lessons from a bad managed fund investment
- An older reader's tips on money and life
- Do parents commit their children to KiwiSaver if they sign them up?
- Meaningful Christmas giving

NZ Herald 11 August 2012

Q&As: The kids are off, the house is mortgage-free, now what?
- Couple are disillusioned by pathetic returns on managed funds
- What to do with a small KiwiSaver nestegg when it's your only savings
- Clarifying the rules about KiwiSaver withdrawal if you've moved overseas permanently

Syndicated column 8 October 2011 - Fees matter, especially for younger KiwiSavers

Too many KiwiSavers - particularly younger ones - are sitting in funds that are likely to grow less than other similar funds.

NZ Herald 2 July 2011

Q&As: How to find a good financial adviser
- Difference between an adviser and a fund manager, and how they charge
- Adviser should always make high-interest debt the top priority
- 70-year-old KiwiSaver's plan for her grandchildren

NZ Herald 9 April 2011

Q&As: Bad experience with fund shouldn't put you off KiwiSaver ...
- ... Nor should low income
- Way of getting around high-interest fixed mortgage not without risk

NZ Herald 2 April 2011

Q&As: Executives of failed finance companies can't get away with wearing the dunce's hat
- Beware "investment houses" offering 20-per-cent-plus returns
- Why did long-term investment go backwards?

NZ Herald 4 December 2010

Q&As: Bank's handling of a fee inquiry leads customer to switch banks
- One good proverb deserves another
- Should Gareth Morgan Investments be under more scrutiny?
- PLUS Meaningful Christmas gifts

NZ Herald 31 July 2010

Q&As: Two readers are unhappy with ASB's closing of some of its investment funds - with some justification, but only "some".
Another reader gives up on reading this column, claiming I am "inside the tent" with the financial industry

NZ Herald 24 July 2010

Q&As: One reader is angry that ASB is closing the trusts he's invested in, while ...
Another reader sees it as a great opportunity to try a new investment strategy with term deposits
I might be a duck or a weasel, but I'm not a financial adviser

NZ Herald 10 July 2010

Q&As: Other ways in which gold is risky
The difference between term deposits and bonds
Why is ING's default KiwiSaver scheme cheaper than the very similar ANZ and National Bank schemes?
Readers offer some udder ideas on what to call Mum and Dad investors

Money column for 10 July 2010

NZ Herald 8 May 2010

Q&As: Two readers' bright ideas on how to negotiate with real estate agents
Everything you need to know about tax on PIEs, which include almost all KiwiSaver funds

NZ Herald 1 May 2010

Q&As: Real estate agent objects to my suggesting people negotiate with agents
Brian Gaynor's and my differing views on the best way to invest
Buy a KiwiSaver book for less than half price

NZ Herald 20 February 2010

Q&As: Paying off mortgage - and getting rid of badly undiversified portfolio - are two great ideas
KiwiSaver can work well for student
Laying out the details on KiwiSaver exit fees
Buying shares directly from overseas broker cheaper in short run, but may not be wise

NZ Herald 13 February 2010

Q&As: Some active share funds will do better than passive index funds, but it's impossible to predict which ones
Don't go chasing high-performing KiwiSaver funds - here's how to choose your provider
Another index fund available in New Zealand
Fee-charging advisers don't gain from putting clients in higher risk investments than they should

NZ Herald 6 February 2010

Q&As: It's not wise to let yourself be forced into being a landlord
Which New Zealand providers offer passive or index funds?
What are the minimum investments in passive funds?
Details on how the new resolution schemes for disputes with advisers will work

Syndicated column 3 November 2009 - Fund performance tables can do more harm than good

Some figures I saw recently strengthened my resolve to steer people away from KiwiSaver performance comparisons.

NZ Herald 1 August 2009

Q&As: Reader's sad story about racing tips company
Horse breeder and racer gives his perspective on tips companies
When is a KiwiSaver cash fund not a cash fund?

NZ Herald June 20 2009

Q&As: No use crying over split milk: Investor can still make use of 10-year rule
Not all landlords have a dream run with their tenants
How KiwiSaver returns are boosted
Do KiwiSaver contributions need inflation-proofing, and if so, how?

NZ Herald June 6 2009

Q&As: Are rental properties the low-risk way to invest?
How to find out which financial institutions are covered by the government's deposit guarantee scheme
Getting rid of KiwiSaver mortgage diversion was a mercy killing

Syndicated column June 2 2009 - Nyah nyah to Morningstar

One aspect of the recent Morningstar report on investors' experience of managed funds - in which New Zealand came bottom out of 16 countries - got little coverage in the news media. Ironically, it's about media coverage.

NZ Herald May 30 2009

Q&As: "Gambler" with foreign currency movements had better get out of the casino before he loses more than his shirt
2 readers object to what I said last week about managed funds - but are their comments fair?
The fun continues over classic cars and whether they make good investments

NZ Herald May 23 2009

Q&A: Don't let international survey put you off investing in managed funds
Reader challenges comments about classic cars

NZ Herald May 2 2009

Q&As: When investing in four funds is not necessarily better than investing in one
How employees can go about topping up their KiwiSaver contributions
Plus: "Too many providers" and other gripes of non-KiwiSavers who took part in a survey

NZ Herald August 16 2008

Q&As: Advice on investment during retirement has worked for these readers
KiwiSaver contributions holidays will be easy to take
Reader dislikes last week's answer on KiwiSaver fund performance

NZ Herald August 9 2008

Q&As: Reader wants a list showing how KiwiSaver funds have performed, but I won't oblige.
Why farmers mingle their work and personal expenses.
More reasons why taxing families as one unit might harm more than it helps.

NZ Herald December 8 2007

Q&As: Why 20 shares are much better than two.
Reader claims diversification is not a great idea. I disagree.
Is land a lower risk investment than a share fund?

NZ Herald September 22 2007

Q&As: KiwiSaver totals over the years should be adjusted for inflation - but let's not get carried away.
People receiving ACC payments or Paid Parental Leave have a choice in KiwiSaver.
Early retirement plans won't be harmed by membership in KiwiSaver.

NZ Herald September 2007

Q&As: Should a couple with 3 children move to a bigger house in town or take a bet on a coastal property?
Are KiwiSaver bond funds as conservative as they seem?

NZ Herald July 28 2007

Q&As: KiwiSaver providers that are offering ethical investment funds.
More on ethical KiwiSaver funds.
Will the KiwiSaver kick-start be around for a while?
Could the government take KiwiSaver money to repay student loans?
Oops! Too much haste.
Sack adviser who recently recommended Bridgecorp.

NZ Herald January 27 2007

Q&As: Unclaimed money may be yours!
Options for couple retiring with $200,000 and no house.
More on the index/active share fund debate - the theory and how it works in NZ

NZ Herald January 20 2007

Q&As: Are index funds, which I recommend, inferior share fund investments, as Herald columnist Brian Gaynor claims?
A small New Zealand town has it all, a resident claims!

NZ Herald January 13 2007

Q&As: Options for a newly retired couple with $200,000 and no home include part-time work, buying a home with a flat attached, an interest-only mortgage and equity release.
Two Q&As on which investments are affected by the new tax law on international shares, and how it will work for investors.

Syndicated column November 21 2006: Look beyond the dividends

In share fund investing, keep your eye on the prize - the over-all return, not just the fees and dividends.

Syndicated column November 7 2006: An exceptionally unlucky reader

International index funds, a favourite long-term investment of mine, don't look good to one reader.

"I bought about $2000 worth of WiNZ in 2000," he writes. "They are now 27 per cent lower (have been for quite a while). Fortunately for me it was not a huge amount.

"Twenty years is a long time to wait for the fund to claw its way back up. Hopefully all the investors in index funds can wait that long!"

NZ Herald October 28 2006

Q&As: A reader finds a flaw in my "avoid the rear-view mirror" argument. Or does he?

Would NZ's tax revenue actually increase if we all invested offshore?
Inland Revenue says it can't fix everything at once.

Syndicated column October 24 2006: Why some advisers don't recommend index funds

A while back I wrote that I still think index funds are the best way for most people to invest in shares, even though they are scheduled to lose their tax advantage next year. That has prompted an intriguing question from a reader:

"If index funds outperform all other forms of sharemarket investing over a long period of time (10 years?), then why do advisers recommend other forms? Is it simply due to their commission?"

NZ Herald October 21 2006

Q&As: Is there an 18-year cycle for industrial and resource shares?
Why index fund of Aussie shares has done much worse than its index.
Limited submissions on tax changes not good enough.
NZ shares, already favoured, shouldn't get still more favourable tax treatment.

NZ Herald October 14 2006

Q&As: Why I won't do research on an Aussie resource index fund.
Too little time to study the new tax plans for international share investments.

NZ Herald July 22 2006

Q&As: 2 on whether preparation and research plays a part in "luck".
Winning entries in competition to win a copy of "Get Rich Slow".

NZ Herald February 25 2006

Q&As: Is compounding interest over-rated?
Credit cards v eftpos.
How long is long-term? Returns on different assets.

NZ Herald January 21 2006

Q&As: Shares v term deposits - it depends how much time you have.
Short-of-cash millionaires should try to renegotiate their mortgage.
When is a 2% penalty not 2%?

NZ Herald November 19 2005

Q&As: How well do share funds perform?
Comparison of investment performances.

Syndicated column September 6 2005: Share pickers respond to my doubts

Even as I typed it, I thought a certain sentence in my last column was bound to cause trouble.

"Lots of research," I wrote, "shows that an individual investor who researches companies doesn't tend to do any better than someone who chooses shares at random."

Sure enough, a man who describes himself as "a paid-up member of the share pickers guild" emailed me.

Syndicated column July 12 2005: Complexity of financial products no accident

Confirmation, at last, of what we've suspected all along: Providers of financial products may deliberately make them sound complicated.

Syndicated column May 3 2005: Index funds still the best, despite tax changes

An ice cream is still delicious without the chocolate dip. The same goes for index share funds.

Since they made an appearance in New Zealand in the late 1990s, these funds have had a tax advantage over the other type of share funds, called active funds.

It seems likely that the tax advantage will be removed soon. But even if it goes, I still think index funds are best.

Holm Truths summer 02-03

Lessons from past mislead: Investing in what did well last year, or selling what did badly, usually does more harm than good

Also in this issue: Great Debate - Low v high insurance excesses

Holm Truths winter 01

Free lunch a rewarding spread: It's wise to spread your investment money around

Also in this issue: Great Debate - Shares v share funds

Holm Truths autumn 01

Terms of enrichment: How long you want to tie up your money affects what you invest in.

Also in this issue: Great Debate - Shares v rental property