The criteria for KiwiSaver Default provider selection in 2021 was seriously imbalanced. What do the new Default funds look like and how do they compare to the fund managers’ equivalent non-default balanced fund? What criteria can you use to make an assessment of the funds on a forward-looking basis? Are the Default funds loss leaders for the providers, hoping to pick up more members? If so, who pays? Were the selection criteria too skewed towards fees, as opposed to best-in-class investment capabilities?
Price is what you pay, value is what you get
Our recent article explored fee disclosures, but ultimately, an investor needs to be aware of what they are investing in, caveat emptor – ‘let the buyer beware’. Like any consumer product, the consumer should undertake the appropriate due diligence to decide which KiwiSaver fund is most suitable for them. The fund manager has more information about the quality of the investment product than the consumer. Research IP aims to help lessen this difference in favour of the consumer, and help financial advisers provide a valuable service to their clients over the long term.
Is this more about marketing for FUM and flow, where managers have found ways to structure cheaper product i.e. less growth assets, less alternatives, more passive investment approaches, less diversity?
We recommend having a closer look at what each manager is choosing to do in their (non-Default) Balanced Fund, why do they have their other option?
Read the full article on interest.co.nz
To help make managed fund information more transparent, comparable, and accessible, we’ve developed the RIPPL Effect report. The RIPPL (Research IP Pty Ltd) Effect is freely available to financial advisers and DIY investors. Information on fees is provided on page 5 in every report.
The RIPPL Effect is designed to bridge the gap between our Quantitative Tear Sheets and full Qualitative Research Reports. The RIPPL Effect standardises data and information so it can be found in the same place in a report for all managed funds – KiwiSaver or investment fund.
Simple data points are collected and presented in the same place on every report. In particular key information typically found in the PDS, SIPO, or on the Fund Manager’s website, but often hard to find.
Where to from here?
Research IP currently has over 300 reports for managed funds available in the New Zealand market, as well as a range also available in Australia. The initial coverage also includes all default, balanced and growth KiwiSaver offerings. Coverage of funds and data points is expanding daily.
- The RIPPL Effect reports are also available on interest.co.nz
- You can find our research embedded at the point of sale on the new investment platform Flint Wealth.
- We announced a new partnership for Research IP in New Zealand with interest.co.nz at The RIPPL Effect – The future starts here – Research IP (research-ip.com)
Looking for something in particular or have some feedback? Please reach out to one of the RIPPL team
Research IP delivers high quality investment fund research and consultancy services to financial advisers, charities & NFPs and the broader financial services industry. Our experience spans well over 20 years working directly across the multiple facets of finance, so we understand the key drivers and challenges for managers, as well as the impact for investors and the broader industry.
We strive to give you the best information, so you can help your clients make better decisions, and feel more confident about doing business with you. We believe that not only can everybody win, everybody should.
Reach out to us today about your research and consulting needs, and how to make the data work for you, and your clients.
Would you like to see research on a Managed Fund, then enquire here?
Photo credit: Research IP, Manager logos
Comments are closed