tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Tuesday, March 19th, 6:25PM

Investments

rss
Latest Headlines

Portfolio-building has limited appeal

A KiwiSaver provider offering members the ability to pick the assets their retirement savings are invested in says only a small percentage of investors want to take such a hands-on approach.

Wednesday, March 2nd 2016, 6:00AM 1 Comment

NZX-owned Superlife gives investors more control of their KiwiSaver accounts, if they want it.

As well as funds that will be familiar to most KiwiSaver members, such as a life stages option that de-risks the investment as the saver gets closer to retirement, and a fund designed for those saving for a first-home deposit, Superlife also offers investors a more active option.

Those who want to create their own investment strategy can use 14 sector funds to do so.

Investors who want to get to a more detailed level can use 23 exchange-traded funds to create their own portfolios,  the same range on offer from Smartshares,which is also owned by NZX.

Superlife founder Michael Chamberlain said: "Superlife is a vehicle that allows you to implement what you want to do in a cost-effective and efficient way. We are not trying to sell you a product, we are just providing a vehicle and equipping people with education and information."

But he said the appeal of the option would probably always be limited.

Only about a third of KiwiSaver investors would want something that was not mainstream, he said.

"Out of 100 people, 85 aren't going to be interested, don't have the confidence and want to be told what to do, to be able to opt out and leave it to someone else. Of the remaining 15 I would expect two or three to really want to build a portfolio. Ten might want to put together their own strategy , the others don't know what they want, they just know it's not standard."

But he said there would be growth.

"Not necessarily because of investor education improving because generally across New Zealand I don't think it does improve but within New Zealand people are coming into the workforce, others are retiring. As balances get bigger people tend to take more notice. Many people still won't be interested because they prefer to leave it, to trust the experts."

Self-managed super funds have been an area of growth in Australia. 

Chamberlain said there was always a risk that investors would do something ill-advised with their investments, such as cementing losses by moving out of equities during periods of market volatility.

But he said Superlife had a clear philosophy communicated to its members that if they were investing money in the sharemarket it should be money they did not plan to spend within the next 10 years.

Chamberlain said Superlife dealt with advisers who catered for clients on a fee-only basis but because it did not pay commission, was not marketing widely to them.

Tags: KiwiSaver NZX Superlife

« Amanah amasses membersInterest grows in ethical options »

Special Offers

Comments from our readers

On 3 March 2016 at 5:48 am henry Filth said:
Out of 100 people, 85 aren't going to be interested, don't have the confidence and want to be told what to do, to be able to opt out and leave it to someone else. Of the remaining 15 I would expect two or three to really want to build a portfolio. Ten might want to put together their own strategy , the others don't know what they want, they just know it's not standard."

Sad, isn't it.

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

News and information about KiwiSaver

Previous News
Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build 6.19 - - -
AIA - Go Home Loans 8.74 7.24 6.79 6.65
ANZ 8.64 7.84 7.39 7.25
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 7.24 6.79 6.65
ASB Bank 8.64 7.24 6.79 6.65
ASB Better Homes Top Up - - - 1.00
Avanti Finance 9.15 - - -
Basecorp Finance 9.60 - - -
Bluestone 9.24 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Classic - 7.24 6.79 6.65
BNZ - Green Home Loan top-ups - - - 1.00
BNZ - Mortgage One 8.69 - - -
BNZ - Rapid Repay 8.69 - - -
BNZ - Std, FlyBuys 8.69 7.84 7.39 7.25
BNZ - TotalMoney 8.69 - - -
CFML Loans 9.45 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 7.04 - -
Co-operative Bank - Owner Occ 8.40 7.24 ▼6.79 ▼6.65
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Standard 8.40 7.74 ▼7.29 ▼7.15
Credit Union Auckland 7.70 - - -
First Credit Union Special - 7.45 7.35 -
First Credit Union Standard 8.50 7.99 7.85 -
Heartland Bank - Online 7.99 6.69 6.45 6.19
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.90 7.60 7.40 -
HSBC Premier 8.59 - - -
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 7.85 7.05 ▼6.75 6.59
Lender Flt 1yr 2yr 3yr
Kainga Ora 8.64 7.79 ▼7.39 ▼7.25
Kainga Ora - First Home Buyer Special - - - -
Kiwibank 8.50 8.25 7.79 7.55
Kiwibank - Offset 8.50 - - -
Kiwibank Special - 7.25 6.79 6.65
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 9.00 7.75 7.35 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
Resimac - LVR < 80% 8.84 8.30 7.89 7.69
Lender Flt 1yr 2yr 3yr
Resimac - LVR < 90% 9.84 9.30 8.89 8.69
Resimac - Specialist Clear (Alt Doc) - - 8.99 -
Resimac - Specialist Clear (Full Doc) - - 9.49 -
SBS Bank 8.74 7.84 7.45 7.25
SBS Bank Special - 7.24 6.85 6.65
SBS Construction lending for FHB - - - -
SBS FirstHome Combo 6.19 6.74 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.95 - - -
Select Home Loans 9.24 - - -
TSB Bank 9.44 8.04 7.55 7.45
Lender Flt 1yr 2yr 3yr
TSB Special 8.64 7.24 6.75 6.65
Unity 8.64 6.99 ▼6.79 -
Unity First Home Buyer special - - 6.45 -
Wairarapa Building Society 8.60 7.15 6.85 -
Westpac 8.64 7.89 7.49 7.25
Westpac Choices Everyday 8.74 - - -
Westpac Offset 8.64 - - -
Westpac Special - 7.29 6.89 6.65
Median 8.64 7.29 7.32 6.65

Last updated: 14 March 2024 9:32am

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com