In this first edition of The KPMG Funds Management Update, we explore how advisers are meeting the challenge of providing quality financial advice. We also look at the impact of exchange traded funds, the annuities market and the lessons from across the ditch, the explosion of operational risk together with topical tax and KiwiSaver related articles from internal and external contributors.
The Funds Management Update reveals New Zealanders are being too passive with their KiwiSaver earnings. There are an unnecessarily high concentration of KiwiSaver investment within the conservative funds. New Zealanders need to take a closer look at their potential KiwiSaver growth. In recent times, growth fund can deliver double-figure rates of return compared to a cash fund at around 2-3%.
“As a rule of thumb, if you’re aged between 25-40, you should be more disposed to a growth fund; as you have plenty of time to earn at higher level and recover should the market fall. If you are a little older, you might lean toward a balanced or growth fund. People who should be in a conservative fund are those who are nearing retirement age and wanting certainty around their capital – but even then, they might want to split their risk.”
- John Kensington – KPMG Head of Financial Services -
For in-depth analysis on all of the above topics, download a copy of Funds Management Update 2015.
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