Showing posts with label kiwisaver. Show all posts
Showing posts with label kiwisaver. Show all posts

Thursday, October 27, 2011

Labour kick employers in the guts with Kiwisaver.

Interesting that Labour's policy released today that advocates making Kiwsaver compulsory and raises the employer contribution to 7% from 2% and keeps employee contributions the same is about saving.


"The KiwiSaver change "for all workers" would take effect from 2014.

Employee contributions remain at 2 per cent, "because we know families are finding it hard to make ends meet right now, let alone save".

However, employer contributions would increase by 0.5 per cent a year from 3 per cent in 2014 to 7 per cent by 2022.

"Making KiwiSaver universal will make it simpler for Kiwis to save and build a retirement nest egg", "Universal KiwiSaver also reduces our reliance on foreign lending. It builds up our own pool of savings which can be invested in New Zealand businesses and create jobs for Kiwis."

To make the policy more affordable for the Government, Mr Goff said Labour would phase in the $1000 kick start for all new members at $200 a year". NZ Herald

The $1000 every kiwisaver will get via a State handout will be borrowed from China and gather interest. The employee contributes a tiny amount and the employer gets socked the most.

The merits of saving via kiwisaver have yet to be shown. So far it has been a gigantic failure in terms of saving and returns.

The big kick in the guts though is for employers who will struggle to make this contribution and to kick our business in the guts at a time of severe recession is just plain idiotic.

The taxpayer is a net loser from this policy.





Posted by Share Investor at 5:03 PM 0 comments

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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

But wait there’s more: How I’m learning to love Kiwisaver

Discuss Kiwisaver @ Share Investor Forum

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Recommended Amazon Reading

The Intelligent Investor: The Definitive Book on Value Investing. A Book of Practical Counsel (Revised Edition)
The Intelligent Investor: The Definitive Book on Value Investing. A Book of Practical Counsel (Revised Edition) by Benjamin Graham
Buy new: $14.95 / Used from: $7.50
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c Share Investor 2010

Posted by Share Investor at 11:40 AM 0 comments

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Wednesday, April 2, 2008

Wheres the Love? [Extended Political Animal Edition]

http://www.blogut.ca/wp-content/uploads/2007/05/bureaucracy.jpg
Government cost to business hasn't been ameliorated by today's quadrangle of
State interference that kicked off, appropriately, on April 1.


Just we wee addendum to the original article. In parliament today, listeners would have heard Michael Cullen et al waxing lyrically about how much the Labour Government had "given" to New Zealanders over the years and the latest raft on handouts, mentioned below were added to the long list.

 Labour gave us free student loans, more holidays, 20 free hours childcare,higher wages,more holidays,corporate tax cuts, yadda, yadda.

 The point is clear to me and underlined by a great speech by Act's Heather Roy who just happened to mention that Labour gave us none of those things. It was our money to begin with and how about giving some of it back so we can make our own decisions about what we want to do with our moola!
Originally published @ Share Investor Blog 1 April 2008

 I cant help myself talking about it, politics is intrinsically linked to investing and business and in New Zealand our economy is hugely influenced by what the government of the day does to it more than most global economies.

 The introduction and trumpeting today by our Labour government of 4 things that "they are proud of" that will "help business" has less to do with helping business but more to do with election year and keeping control over the economy and its participants.

 The much ballyhooed 3% cut in corporate tax rates, taxpayer handouts to business for research and development, employer contributions to Kiwisaver and the lift of the minimum wage to 12 bucks all run against each other in their purpose and execution.

 The over hyped tax cut and R & D subsidy for our corporates hides the fact that Kiwisaver, the associated paper work and the lift in wages easily dwarfs the meager 3% cut already.

 Include all the other government imposed costs to business over the last 9 years, like higher ACC, energy and carbon taxes and nonsense like employer funded maternity leave(what is wrong with the family paying, a novel idea I know, but just an idea) and an extra weeks leave for workers and even the blind, deaf, dribbling and Labour voters(OK maybe that is a stretch) can see how far behind business is.

 The tax cut would have to be at least down to a 25% rate to get business back to where it was in 1999, in terms of costs and return of capital.

 That way, business could afford to fund R & D from cashflow instead of another army of extra State funded bureaucrat's handing out taxpayer money to those they see should get our money-I mean these people picking business winners? I doubt many of them can remember their PIN numbers let alone pick good businesses.

 What is missing from today's election focused "take more it and give some back" approach to business is a bold statement to business, especially small business, the back bone of this country, that the country values your contribution and we are going to reward your entrepreneurship.

 State attached funding via R & D subsidies and other quasi government welfare schemes, extra business expense and paperwork isn't a good way to show that we love business.

 I fear the present administration doesn't like the independence and confidence that self employment or owning your own business brings and are doing everything they can to inextricably link business owners quest for economic freedom by weighting business and therefore the economy down with cost and bureaucracy.

 A 3% company tax cut isn't going to cut it for those hard working individuals who own companies and in fact bypasses those who are sole traders entirely.

 Its time to show business we love them.

 Not the opposite.
Related Political Animal Reading

Labour's State Control Out of control


c Share Investor & Political Animal 2008



Posted by Share Investor at 9:22 PM 0 comments

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Friday, December 7, 2007

Share Investor Friday Free for all: Edition 13

Bollard sits on his hands

http://www.illustr8.co.nz/images/Editorial%5Calan-bollard.jpg

Allan Bollard in a more animated frame of mind.


Allan Bollard rattled his sabre again this week.

Keeping the cash rate at 8.25% while telling us inflation was a risk down the road.

Well helloooo! could one of the reasons to the risk of inflation be your 4 rate hikes this year and multiple ones over the last few years?

The short answer is yes but the less interesting answer is that Bollard is clearly out of his depth.

Barely able to see over the rims of his accountant style glasses, he rarely has the vision to see further than what happens from day to day..

Instead of dropping the cash rate, as he should have, he risks putting the New Zealand economy at the sort of risk the Labour Government has put it under for the last 8 stifling years.

Labour did it with world record breaking high taxes, removing cash and investment from the economy and Bollard did it with the worlds highest interest rates outside the worlds other banana republics, ditto removing cash from street level and strangling productive investment, savings and business.

World economies are cutting rates to stimulate economies and Bollard sits on his hands. It looks like he will only move once the economic cycle we are in is in the middle of a meltdown.


The Warehouse wont be sold for a bargain


http://www.ezgo.co.nz/images/default/galleryimages/silvia%20park%20warehouse.jpg

Warehouse extra store, one of only three

It looks like it is all on for young and old in the fight for The Warehouse.

After the recent High Court decision granted New Zealand's Foodstuffs and Australia's Woolworths the right to bid for the general merchandise retailer the two prospective buyers have wasted no time in talking to Warehouse management.

Competition between the two to bid for the company is going to be intense and this writer has a $NZ 50000.00 bet that the bidding is going to be explosive.

There is talk of Foodstuffs teaming up with a private equity player to make a bid but the star likely to shine through is Woolworths. It has a very strong balance sheet, excellent cash flows and a history of paying good money for assets it really wants.

The share price has already done the impression of a Nasa rocket by taking off from below 5 bucks last week to close at NZ$6.65 today.


The Canadians Fly in, again.

In the long running saga that is the Auckland International Airport merger/takeover, yesterday news that the Canada Pension Plan Investment Board has changed the terms of its proposed amalgamation with the airport, stimulating more interest in the company's shares. CPPIB would reduce the convertible note component and increase the value of the ordinary share.

http://upload.wikimedia.org/wikipedia/commons/thumb/f/f8/Auckland_airport_international_terminal.jpg/800px-Auckland_airport_international_terminal.jpg

Part of the main Auckland international airport at Mangere

It is offering a convertible note, valued at $2.75, an ordinary share valued at 70.5c and 20c cash.

The proposal will be put to airport shareholders only if CPPIB's $3.66 a share all-cash partial takeover bid for 40 per cent of the airport is successful.

The proposed amalgamation, which requires the support of 75 per cent of airport shareholders, is the second part of the CPPIB's two-pronged scenario to negotiate a restructure of the airport's balance sheet to realize tax benefits.

That offer opens on December 14 and closes mid-March.

The possibility that the board will recommend the bid to shareholders could be a little dodgy considering the pedigree of some of its board members.

Lloyd Morrison or John Brabazon have voiced their opposition to such deals over the last 6 months or more of this long opus and the two council shareholders look reluctant to sell.

Who the hell knows really. The sale process of the airport has only been trumped in its complexity and opaqueness by the sorry tale of Sky City Entertainment and its managements' dilly dallying over bids for the casino company.


Hobson's choice


http://www.kiwisaver.org/assets/2007/5/9/GirlwithKiwifruit.JPG

According to NZ Government stats the Kiwisaver super scheme has 300,000 participants that have "chosen" to "enroll" in it.

What is left out of any analysis is that the scheme is an opt out one rather than opt in so the bulk of those 300,000 haven't done anything. They are merely too lazy to opt out.

Micheal Cullen, our out of his depth Minister of Finance, of course trumpets this as a great success but as usual leaves out the details when they don't stand the scrutiny of logical argument and clear thought processes.

Of course this is the chap who has spent the last 8 years telling New Zealanders that tax cuts don't stimulate economies but is going to hand our money back to us in election year 2008.

Good luck balancing your check book Mr Cullen.

I'm no big fan of this harebrained state controlled and controlling scheme because it is expensive and tax inefficient but it will benefit shareholders in New Zealand listed companies.


Burgers going for half price


http://nzdaisuki.com/yellowpage/upload_img/Burgerfuel.jpg

In Burger Fuel news, you guys out there love Burger Fuel:

According to Google information released this week, Burger Fuel was the subject of the most internet searches of any New Zealand listed company.

This is no surprise to me because I have known this little tidbit since the company listed back in July. Its the biggest search term on my blog as well, followed by the worlds credit problems and Pumpkin Patch Ltd.

Incidentally the share price still languishes at 60c and is thinly traded, with a massive $150 going through today.

Its still on my watchlist though.


NZX Market Wrap & commentary

6:27PM Friday December 07, 2007
By Melanie Carroll, NZ Herald

New Zealand shares made a late rebound today to recover the ground lost after last week's downgrade by international share index compilers MSCI.

The benchmark NZSX-50 index closed up 49.4 points, or 1.2 per cent, at 4092.9, its highest in over a week. Turnover totalled $109 million, and rises outnumbered falls by 58 to 38.

Lines company Vector was the standout stock, recovering to a two-month high of 251, up 6c or 2.5 per cent, from 218 last week.

"The stock always looked cheap anyway but particularly post-the MSCI selldown the market is starting to focus on fundamentals behind the stock, and the fact that there was effectively a profit upgrade in recent times," Macquarie Equities NZ investment director Arthur Lim said.

Other blue chips to rebound were Telecom, up 13c to 444, Auckland Airport, up 7c to 289, Fletcher Building, up 29c to 1169, Fisher & Paykel Healthcare, up 11c at 329, and F&P Appliances, rising 6c to 340.

Sky City was up 6c at 491, Sky TV rose 3c to 566, and Contact Energy slid 17c to 847.
The compilers of the MSCI indexes, which guide international trading and portfolio composition, downgraded New Zealand and are removing five of the top-10 stocks due to lack of liquidity and market capitalisation.

Remaining in the index are Telecom, Fletcher Building, Contact Energy, Auckland Airport and Sky City.

The Warehouse was up 10c at 664, having jumped over 12 per cent since the High Court overturned a Commerce Commission ruling blocking supermarket chains Foodstuffs and Woolworths from bidding for the retailer.

"If you add back the special dividend of 35c, it means that the price is now the equivalent of $7. Clearly the market is saying it is unlikely that the Commerce Commission is going to appeal, and it follows news in Australia that discussions have started taking place between the different parties," Mr Lim said.

Air New Zealand was up 3c at 182, Nuplex gained 10c to 700, Infratil was up 7c at 297, Mainfreight rose 11c to 721, and Ryman Healthcare was up 2c at 212.

Freightways fell 6c to 374, Pumpkin Patch was down 5c at 265, NZX fell 5c to 925, and ING Medical Properties was down 2c at 122.

Among dual-listed stocks, ANZ jumped 50c to 3225, Westpac was up 35c to 3265, AMP rose 16c to 1192, and Lion Nathan rose 17c to 1090.

NZPA


Disclosure: I own Auckland Airport, The Warehouse shares

C Share Investor 2007

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Friday, July 13, 2007

But wait there’s more: How I’m learning to love Kiwisaver

For selfish reasons, I have been thinking lately. What I have been mulling over is Kiwisaver and its relation to the NZX and what it might mean for its future. The stocks in my portfolio and yours are going to benefit.

 Let’s get this straight, I am dead against Kiwisaver. It is compulsory, inefficient, costly, enormously complex, will have low returns for its participants and is damaging for business.

 The big winners will be the Kiwisaver providers, the IRD, who have hired 400 more drones and other government lackeys and the recipients of our largess.

 The NZX could be the big winner if overseas experience has anything to go by.

 The US and most recently the Australian stock market have benefited greatly from the retirement schemes that run in both those countries. The companies on those countries listed indexes have performed consistently better than our listed companies simply because of the large amount of retirement money sloshing around with no place to go but investment.

 True, a lot of retirement funds will be inefficiently filtered through fund managers before reaching the NZX and much of the Kiwisaver proceeds will go offshore to other exchanges but there will clearly be billions going into our stock market.

 In the USA their 401ks have helped push stock fundamentals to levels above the Kiwi NZX and in Australia multiples are similarly higher.

 The extent of many countries super funds and its contributions to their local economies cannot be understated but as these funds have gotten bigger they have even stretched their economic tentacles abroad, US funds through private equity have bought companies in Australia and New Zealand and other countries while Australian funds have bought up large in New Zealand. The biggest retirement money buyout in New Zealand being the Canadian teachers fund buyout of Telecom New Zealand Ltd [TEL.NZ] Yellow Pages for over $2 million NZ dollars.

 How long it will take for the New Zealand super funds proceeds to have an effect on our market depends on the uptake of Kiwisaver by its citizens of course and the impact will also depend on whether Kiwis who start a new job opt out of the conservative 6 providers that are the default ones and whether current employees decide to open themselves up for more risk and more return by going with a provider such as Fisher Funds which is likely to focus on the NZX and ASX and its smaller growth companies.

 Certainly there is already evidence that these types of funds have had an impact on our market. Government and quasi Government institutions through agencies such as the ACC and the Government super fund for state employees have helped bolster our market and its listed companies. Mostly the blue chips but also a few middle to smaller cap stocks have been targeted by these funds.

 Our market has mostly been a disappointment over the years compared to foreign bourses and the absence, up till now, of retirement funds bolstering the NZX will put our market on more of an even footing, help stimulate IPO’s and channel funds away from the over inflated and the tax friendly property market.

 Even though our market has done well over the last few years don’t imagine that it is overvalued as a whole. When you include the extra funds from retirement money that are to come on-stream over the coming years you could be forgiven for doing cartwheels if you are already in the market at the prospects of fund managers pouring mum and dads money into the NZX.

 Kiwisaver isn’t a perfect tool or even close to a perfect tool for helping kiwis save retirement money, tax cuts would be a far better and cheaper solution and then we could put those funds directly where we like.

 Having said that there are always winners and losers when it comes to Governments meddling in its citizens business and for those that are already invested in the NZX and its fund managers of course, they are the big gainers.
Kiwisaver @ Share Investor

 Kiwisaver mediocre substitute for real saving





c Share Investor 2007

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