[Weekly wrap] Currency, cheap advice and SOEs
The currency conundrum is not a new one for advisers or anyone else in the business of investing money overseas, and opinion is split over whether the New Zealand dollar will continue at its high level against the greenback. Some advisers don't do any hedging, although this itself can be a risky option.
Meanwhile, advisers are trying to work out how to provide KiwiSaver advice for as little as $10 a year. With trail commissions very low for KiwiSaver and average balances still small, the only option appears to be charging fees for KiwiSaver advice. But it seems many KiwiSaver members aren't (yet) prepared to pay for that advice.
The partial sell-down of State Owned Enterprises is getting plenty of press and creating a political storm, but will these companies provide a genuine, long-term boost to New Zealand's stock exchange? Financial advisers aren't convinced. It also looks like "Mum and dad investors" might be looking to make a quick buck from their shares.
Remember the ads about "cowboy" financial advisers? Well, it looks like either they've been weeded out or there weren't that many to begin with, because the Financial Markets Authority has only rejected three AFA applications, 0.15% of the total number of adviser who have successfully become authorised.
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![[Weekly Wrap] KiwiSaver in play; but outcome unclear](https://goodreturns.publit.io/file/c_fill,w_300,h_200/0ad582e4-c9a3-4692-bbe2-62d928f77fd2.jpg)
