Showing posts with label Gareth Morgan. Show all posts
Showing posts with label Gareth Morgan. Show all posts

Wednesday, November 23, 2011

Labour's Capital Gains tax to impact negatively on house prices

The impact on the economy of a 15% capital gains tax (CGT) proposed by Labour will be huge. Not only will all asset classes be negatively impacted directly but the 15% tax on rental housing will have a direct impact on the selling prices of the family home.


The 15% tax on rental housing will almost immediately affect that sector as shortly after election day investors would want to sell before the CGT is imposed in 2013. It is hard to tell by how much but in a depressed market with increased selling pressure you don't have to be Einstein to figure out it will be substantial negative impact.

The spill-off of that will be pressure from falling rental house values impacting on sellers of private homes. These are of course homes that kiwis generally have their biggest investment in.

Long-term a CGT and its impact on house prices may be debatable in terms of its influence but in the short to medium term it is economics 101 that prices for the family home will fall.

Given a more robust economy, sustainable rising house prices and good demand a CGT may not have been such a bad thing in terms of its economic kick but in the most uncertain economic times since the Great Depression a CGT has the potential to kick-off a major housing sell-off and a consequent drop in house prices.

The fallout from that is obvious. Less confidence in people's personal financial situation and a resultant slowdown in consumer spending and a loss of jobs.

Labour really need to think hard about this if they are lucky enough to gain enough votes on November 26. It may have support from left commentators like Gareth Morgan, Bernard Hickey and the hapless Rod Oram but it is probably more akin to an exercise in economic suicide rather than a good way to raise more taxes - especially given the tough times that we are currently facing and will continue to face for years to come.

Every Bastard Says No: The 42 Below Story

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Monday, July 5, 2010

Kiwisaver: A mediocre substitute for real saving

Kiwisaver has been lauded by most commentators as the tool to help New Zealanders save money but an almost compulsory scheme that lacks the right incentives and is also designed to provide mediocre returns (see table at bottom) to investors is clearly not the answer.

The big winners have been the Kiwisaver providers who have clipped the ticket along the way while investors have so far lost capital and for folks like Mary Holm and Gareth Morgan -who is also a Kiwisaver provider - who are selling books on the subject.

The only incentive for those to get into Kiwisaver is one of a selfishness and greediness that they can get something for free off their fellow taxpayer or employer in the form of a subsidy or what most would call a handout and that is just morally and intellectually dishonest.

It is mostly a default scheme for the lazy who cant be bothered to opt out when they get a new job and for those already in work the incentive to chose a provider wisely is limited to mostly guesswork.

Kiwisaver is a bloody socialists wet dream but a financial nightmare.

We need choice and real financial incentive to boost our savings levels and the best thing any Government could do would be to lower taxes on all savings and investments therefore providing real long-term returns, a great incentive to start in the first place. The added benefit of choice would follow along with the absence of interference and the extra expense from Bureaucrats within the State system.

Making Kiwisaver strictly compulsory, as Sam Knowles from KiwiBank advocates, will lead to poor returns for investors, and eventually a collapse of the scheme as it eats itself up with expenses and fees.

The Government of the day simply cannot be trusted to keep its nose out of the scheme and it is bound to be interfered with in the future, to the detriment of the investor and at the expense of the taxpayer.

Under Kiwisaver individuals in the scheme have no control over where their provider puts their money and it could be invested in any of the harebrained "investments" that many have lost their money in over the last few years. Hardly a good investment and not safe at all.

Better that the individual has control over where their moola goes and that way, with a little education, your money can go where you want it too and you will have more chance of having it if you retire.


KiwiSaver Performance Survey - Returns to 31 March 2010
http://www.goodreturns.co.nz/pics/morningstar_logo.gif





Default Options
3-month
(%)
6-month
(%)
1-year
(%)
2-year
(%pa)
AMP KiwiSaver (Default) Fund
1.04
2.93
7.50
4.67
ASB KiwiSaver Conservative Fund (Default)
2.05
3.32
9.89
5.58
AXA KiwiSaver Income Plus (Default)
2.24
4.07
14.15
5.67
ING KiwiSaver - Conservative Fund (Default)
1.93
3.40
9.97
5.21
Mercer KiwiSaver Conservative (Default)
2.83
4.66
17.63
6.60
TOWER KiwiPlan-Cash Enhanced (Default)
1.77
3.44
10.51
4.87





Multisector Options



Conservative
3-month
(%)
6-month
(%)
1-year
(%)
2-year
(%pa)
AMP KiwiSaver (Default) Fund
1.04
2.93
7.50
4.67
ANZ KiwiSaver - Conservative Fund
1.98
3.79
10.35
5.23
Aon KiwiSaver Russell Lifepoints Cnsrv
3.19
6.20
20.66
6.52
ASB FirstChoice KiwiSaver Tracker Conserv Fund
2.05
3.31
9.86
5.61
ASB KiwiSaver Conservative Fund (Default)
2.05
3.32
9.89
5.58
Asteron KiwiSaver Conservative Fund
2.09
4.31
11.95
4.53
AXA KiwiSaver Income Plus (Default)
2.24
4.07
14.15
5.67
Fidelity KiwiSaver-Capital Guaranteed Kiwi
1.48
2.62
6.48
-
Fidelity KiwiSaver-Conservative Kiwi Fund
3.08
5.31
13.44
5.93
Fisher Funds Conservative KiwiSaver Fund
0.38
0.74
-
-
Gareth Morgan Kiwisaver Scheme Conservative Fund
1.66
3.15
6.37
4.95
Grosvenor KiwiSaver Enhanced Income Fund
1.27
2.61
4.80
5.96
ING KiwiSaver - Conservative Fund (Default)
1.93
3.40
9.97
5.21
ING KiwiSaver SIL Conservative Fund
2.03
3.82
10.50
5.41
Mercer KiwiSaver Conservative (Default)
2.83
4.66
17.63
6.60
National Bank KiwiSaver - Conservative
1.99
3.82
10.48
5.29
Smartshares Smartkiwi Conservative Fund
0.71
2.75
7.50
4.09
TOWER KiwiPlan-Cash Enhanced (Default)
1.77
3.44
10.51
4.87
Average
1.88
3.57
10.71
5.38





Moderate
3-month
(%)
6-month
(%)
1-year
(%)
2-year
(%pa)
AMP KiwiSaver Conservative Fund
1.44
3.67
7.75
6.95
AMP KiwiSaver Moderate Fund
1.38
4.16
10.27
4.21
ANZ KiwiSaver - Conservative Balanced Fund
2.39
4.84
15.12
4.36
Aon KiwiSaver Russell Lifepoints 2015
3.14
6.80
24.81
5.04
Aon KiwiSaver Russell Lifepoints Mod
3.16
7.06
26.12
4.34
ASB FirstChoice KiwiSaver Active Conservative Fund
2.53
4.17
15.73
5.62
ASB FirstChoice KiwiSaver Tracker Moderate Fund
2.87
4.79
17.92
3.58
ASB KiwiSaver Moderate Fund
2.88
4.80
17.90
3.80
AXA KiwiSaver Conservative
2.50
4.63
15.85
-
Grosvenor KiwiSaver Conservative Fund
2.43
3.85
12.80
5.99
Huljich Conservative Diversified KiwiSaver Fund
-1.49
-0.69
11.90
9.62
ING KiwiSaver - Conservative Balanced
2.06
3.84
13.49
4.02
ING KiwiSaver SIL Conservative Balanced Fund
2.48
4.92
15.40
4.58
Mercer Super Trust KiwiSaver Conservative
2.72
4.49
19.73
4.74
National Bank KiwiSaver - Conservative Balanced
2.40
4.82
15.13
4.34
Smartshares Smartkiwi Balanced Fund
0.11
4.06
20.81
1.53
TOWER KiwiPlan-Conservative
3.00
5.12
16.46
4.72
Westpac KiwiSaver-Conservative Fund
1.90
3.64
10.72
4.76
Average
2.11
4.39
16.00
4.54





Balanced
3-month
(%)
6-month
(%)
1-year
(%)
2-year
(%pa)
AMP KiwiSaver Balanced Fund
1.26
4.91
14.55
2.02
AMP KiwiSaver Moderate Balanced Fund
1.33
4.66
12.89
2.54
AMP KiwiSaver-TOWER Balanced Fund
3.33
6.55
18.17
3.04
ANZ KiwiSaver - Balanced Fund
2.75
5.76
19.53
3.43
Aon KiwiSaver ING Balanced
3.34
7.13
26.94
6.08
Aon KiwiSaver Russell Lifepoints 2025
3.13
7.65
29.54
2.24
Aon KiwiSaver Russell Lifepoints Bal
3.06
7.89
31.51
1.65
ASB FirstChoice KiwiSaver Active Balanced Fund
3.16
5.58
23.12
2.74
ASB FirstChoice KiwiSaver Tracker Balanced Fund
3.52
6.05
24.21
1.93
ASB KiwiSaver Balanced Fund
3.51
6.07
24.15
1.97
Asteron KiwiSaver Balanced Fund
2.65
5.68
21.52
3.83
AXA KiwiSaver Balanced
2.93
6.61
27.73
3.48
Brook Professional KiwiSaver Scheme Balanced Fund
2.20
4.78
12.78
5.28
Fidelity KiwiSaver-Balanced Kiwi Fund
3.67
6.13
18.69
6.23
Fidelity KiwiSaver-Ethical Kiwi
3.04
5.16
17.74
-
Forsyth Barr KiwiSaver Balanced Port
1.59
3.85
14.57
-
Gareth Morgan Kiwisaver Scheme Balanced Fund
1.80
3.96
7.99
2.08
Grosvenor KiwiSaver Balanced Fund
2.97
4.96
19.32
5.34
Huljich Balanced Diversified KiwiSaver Fund
-3.26
-2.60
13.52
5.80
ING KiwiSaver - Balanced
2.29
4.39
17.00
2.63
ING KiwiSaver SIL Balanced Fund
2.85
5.87
19.81
3.75
Mercer KiwiSaver Balanced
3.38
5.69
29.23
2.03
Mercer Super Trust KiwiSaver Active Balanced
3.38
5.68
28.94
2.01
Mercer Super Trust KiwiSaver Moderate
3.66
6.02
24.70
5.46
National Bank KiwiSaver - Balanced
2.78
5.75
19.50
3.48
TOWER KiwiPlan-Balanced
3.80
6.89
22.29
3.00
Westpac KiwiSaver-Balanced Fund
2.68
5.77
18.61
3.71
Average
2.62
5.44
20.69
3.33





Growth
3-month
(%)
6-month
(%)
1-year
(%)
2-year
(%pa)
AMP KiwiSaver-ING SIL Balanced Fund
2.23
7.36
22.03
3.11
AMP KiwiSaver Growth Fund
1.23
5.70
18.16
-1.64
AMP KiwiSaver - TYNDALL Balanced Fund
3.04
5.95
20.16
2.05
ANZ KiwiSaver - Balanced Growth Fund
3.15
6.69
24.27
2.36
ANZ KiwiSaver - Growth Fund
3.45
7.62
28.90
1.13
Aon KiwiSaver Russell Lifepoints 2035
3.11
8.28
33.28
-0.03
Aon KiwiSaver Russell Lifepoints Growth
3.09
8.44
34.39
-0.46
Aon KiwiSaver Tyndall Balanced
2.90
6.16
19.70
2.88
ASB FirstChoice KiwiSaver Active Growth Fund
3.49
6.32
27.42
1.54
ASB FirstChoice KiwiSaver Tracker Growth Fund
4.05
7.20
30.17
-0.12
ASB KiwiSaver Growth Fund
4.05
7.21
30.11
0.10
Asteron KiwiSaver Balanced Growth Fund
2.99
7.03
29.08
2.41
Fidelity KiwiSaver-Growth Kiwi Fund
4.12
6.42
24.12
3.66
Forsyth Barr KiwiSaver Growth Portfolio
1.49
4.04
18.25
-
Gareth Morgan Kiwisaver Scheme Growth Fund
2.78
4.60
8.30
-2.10
Huljich Growth Diversified KiwiSaver Fund
-5.32
-4.70
13.46
4.54
ING KiwiSaver - Balanced Growth
2.43
4.88
20.64
1.35
ING KiwiSaver - Growth Fund
2.56
5.32
24.20
-0.14
ING KiwiSaver SIL Balanced Growth Fund
3.17
6.80
24.59
2.65
ING KiwiSaver SIL Growth Fund
3.47
7.69
29.13
1.41
Mercer Super Trust KiwiSaver Growth
3.26
5.61
30.16
0.46
National Bank KiwiSaver - Balanced Growth
3.19
6.72
24.23
2.31
National Bank KiwiSaver - Growth
3.46
7.61
28.73
1.02
Staples Rodway KiwiSaver Balanced Fund
2.68
0.80
22.28
-0.18
Staples Rodway KiwiSaver Growth Fund
3.89
5.38
20.71
1.70
Westpac KiwiSaver-Growth Fund
2.53
5.98
21.52
2.50
Average
2.71
5.81
24.15
1.17





Aggressive
3-month
(%)
6-month
(%)
1-year
(%)
2-year
(%pa)
AMP KiwiSaver Aggressive Fund
1.18
6.22
20.78
-3.38
Aon KiwiSaver Russell Lifepoints 2045
3.07
8.86
37.29
-2.45
AXA KiwiSaver Growth
2.95
7.51
35.12
1.22
Brook Professional KiwiSaver Scheme Growth Fund
3.15
7.12
21.01
6.48
Fidelity KiwiSaver-Aggressive Kiwi Fund
6.30
9.17
33.03
6.21
First NZ Capital KiwiSaver Scheme
3.50
6.16
19.79
-5.94
Fisher Funds Growth KiwiSaver Fund
3.95
9.09
49.31
11.97
Grosvenor KiwiSaver Geared Growth Fund
4.69
7.71
-
-
Grosvenor KiwiSaver High Growth Fund
4.53
7.05
29.66
1.61
Mercer KiwiSaver High Growth
3.46
6.07
35.35
-1.57
Mercer Super Trust KiwiSaver High Growth
3.39
5.96
34.91
-1.68
TOWER KiwiPlan-Growth
4.38
8.38
31.42
0.47
Westpac KiwiSaver - Capital Protection Plan (1)
3.29
7.75
28.21
-
Average
3.68
7.47
31.32
1.18





Single Sector Options



Cash
3-month
(%)
6-month
(%)
1-year
(%)
2-year
(%pa)
AMP KiwiSaver Cash Fund
0.88
1.83
3.80
5.91
ANZ KiwiSaver Cash Fund
0.48
1.00
2.14
-
Aon KiwiSaver ING Cash
0.51
1.11
1.86
-
Aon KiwiSaver Tyndall Cash
0.73
1.47
2.93
5.42
ASB FirstChoice KiwiSaver NZ Cash Fund
0.56
1.16
2.48
4.87
ASB KiwiSaver NZ Bank Deposit Fund
0.56
1.17
2.50
4.85
Asteron KiwiSaver Capital Fund
0.70
1.43
3.25
5.44
AXA KiwiSaver Cash
0.86
1.90
4.40
5.38
ING KiwiSaver - Cash Plus Fund
0.58
1.15
2.50
4.84
ING KiwiSaver SIL Cash Plus Fund
0.43
0.85
1.93
4.25
Mercer KiwiSaver Cash
1.25
2.17
4.01
5.89
Mercer Super Trust KiwiSaver Cash
0.91
1.84
3.50
5.61
National Bank KiwiSaver Cash Fund
0.50
1.02
2.17
-
Staples Rodway KiwiSaver Conservative Fund
0.79
1.62
2.70
4.33
TOWER KiwiPlan-Preservation
0.74
1.55
3.20
5.26
Westpac KiwiSaver-Cash Fund
0.67
1.40
3.15
4.54





Fixed Income
3-month
(%)
6-month
(%)
1-year
(%)
2-year
(%pa)
Asteron KiwiSaver High Yield Fixed Interest Fund
2.15
5.08
9.07
4.86
ING KiwiSaver SIL New Zealand Fixed Interest Fund
2.68
4.77
7.94
5.44
ING KiwiSaver SIL International Fixed Int Fund
1.48
1.90
4.04
7.51
Mercer Super Trust KiwiSaver Fixed Interest
3.94
5.98
20.76
10.01





Property
3-month
(%)
6-month
(%)
1-year
(%)
2-year
(%pa)
Asteron KiwiSaver Global Property Fund
6.01
9.20
65.43
-14.67
ING KiwiSaver SIL Australasian Property Fund
-3.16
-0.86
20.73
-4.84
ING KiwiSaver SIL International Property Fund
6.97
14.29
81.22
-13.03
Mercer Super Trust KiwiSaver Property
3.19
6.87
64.28
-6.34





Australasian Equity
3-month
(%)
6-month
(%)
1-year
(%)
2-year
(%pa)
Aon KiwiSaver Milford
-
-
-
-
Aon KiwiSaver Milford Aggressive Fund
2.79
7.40
22.88
14.53
Asteron KiwiSaver SRI Share Fund
1.96
4.19
29.62
0.48
Asteron KiwiSaver Trans-Tasman Small Companies Shr
3.16
9.82
58.03
6.93
ING KiwiSaver SIL Australasian Share Fund
0.97
4.28
25.65
-0.11
Mercer Super Trust KiwiSaver Trans-Tasman Shares
0.80
3.44
24.51
0.98
Mercer Super Trust KiwiSaver Shares
3.82
6.49
33.96
-3.61
Smartshares Smartkiwi Growth Fund
-0.46
5.29
32.44
-1.66





International Equity
3-month
(%)
6-month
(%)
1-year
(%)
2-year
(%pa)
ASB FirstChoice KiwiSaver Active High Growth Fund
4.09
7.67
30.63
-
ASB FirstChoice KiwiSaver Global Sustainability Fd
6.17
10.03
31.09
-
Asteron KiwiSaver International Share Fund
3.34
7.21
23.32
-4.00
ING KiwiSaver SIL International Share Fund
5.78
10.84
26.02
0.60
ING Kiwisaver SIL Sustainable Growth Fund
3.41
7.71
19.35
-
Mercer Super Trust KiwiSaver Global Shares
5.05
7.66
37.50
-6.09
TOWER KiwiPlan-Equity
5.35
11.12
36.30
-2.73





Miscellaneous
3-month
(%)
6-month
(%)
1-year
(%)
2-year
(%pa)
Fidelity KiwiSaver-Options Kiwi Fund
8.04
12.53
32.81
14.38







Kiwisaver @ Share Investor

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Thursday, June 18, 2009

Morgan's book "After the Panic" timely

Media - Video | Text

It is a little too late when you look back having lost your life savings to get it back, but anything that improves investor education and puts the spotlight on dodgy financial practices so you don't perpetuate the same mistake has got to be a positive thing.

Gareth Morgan, the well known economist/socialist has finally come back on track, pulled his finger out of his backside after his embarrassing book on so-called "global warming" and produced a book the average investor should read called After the Panic: Surviving bad investments and bad advice.
His book names collapsed companies and those individuals who are responsible for some of the finance companies that have been buried, along with nearly NZ$ 2 billion of investor money buried along with them.

I am not sure if it includes names of "financial advisers", the financial world equivalent of global warming zealots, but these individuals take a large part of the blame.

The book provides documents from said finance companies that reinforced their "stability" to the investor public while behind the scenes trusts were re-organised, bank accounts were siphoned, money was given to mistresses and tickets to Australia were purchased -my emphasis.

This excerpt from the book is but one example:

"You can have peace of mind when investing with Provincial Finance as you're dealing with an experienced, dedicated finance company," Provincial Finance said in a prospectus in 2005.

"... when you invest with Provincial Finance you'll enjoy high levels of personal service, regular, easy to understand performance reports, attention to risk, and a good rate of return over the term of your investment".

Disclosure was only the beginning of the dodgy dealing of finance companies of course, there was also the massive inter-related party lending to bolster the books, the selling of property that didn't exist, money siphoned from company accounts to pay for lavish personal expenses and a whole host of small crimes and massive mis-demeanor's.

Gareth has written a book of its time and inexperienced/experienced prospective investors alike, in any asset class, should have a read of his book, if only to see where the bodies are buried.

You can be sure though, just as some of these individuals who have participated in this financial rape of the greedy, the hapless, the elderly and the mis-advised, came out of the ashes of similar shell games from the financial collapse of the sharemarket in the 1980s, they will rise again sometime in the future to do it all again.

Gareth's book looks like another tool that investors can use to stop them from becoming financial prey, again.

Related Video

Gareth Morgan Interview - One News



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