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.
© 2019 KPMG, a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.