Managed funds

[BlackPeter]

I have been pondering the future lately, as retirement is looming within the next few years. I have never invested in managed funds, but I feel that maybe I do need to start thinking about this as an option down the track.

Not asking for recommendations as such, but would be interested to hear how others made/make their decisions about which managed fund to invest in. I am talking small amounts here - maybe $10,000 - $20,000. I still have my very small portfolio, but to be honest, I think I have done my dash with investing in companies. Just not the best option for me now for various reasons.

If anyone cares to contribute, I would appreciate your input.

Not many managed funds around which beat index funds on a regular basis. Actually - not sure I know of any (regularly beating index funds) with the exception of Warrens Buffet's company, but then - Warren is old, i.e. not quite sure whether the future of Birkshire Hathaway will be as outstanding as its past....

If the index fund idea sounds sensible - have a look at Kernelwealth https://kernelwealth.co.nz/. They give you plenty of flexibility combined with (for NZ) quite low fees.

Looking at myself - I have still most of our funds directly invested in NZ and overseas shares, r started however a year or so ago an Index "Reference portfolio" with Kernel - with main components NZX20, Global 100 and Global ESG and Cash (for a slow release into the others ...).

I know, some people here wouldn't touch ESG with a bargepole, but then the index returned 16.5% pa in average over the last 5 years. Not bad. I have no problem with people trashing ESG - and happy to ignore them and take the money.

Obviously - if you go for index funds ... there are plenty of options and plenty of providers, in NZ as well as overseas. Never looked into Smartshares (NZX), but I think they offer as well something similar. I would look for flexibility (how easy is it to change indices and still more important - get out if you need the money), can you trust the fund manager (avoid funds located in legislations you don't trust or understand - and do they offer a set of indices which look interesting for you.

Anyway - just my 2 cents - happy investing!

[Raven]

I have been pondering the future lately, as retirement is looming within the next few years. I have never invested in managed funds, but I feel that maybe I do need to start thinking about this as an option down the track.

Not asking for recommendations as such, but would be interested to hear how others made/make their decisions about which managed fund to invest in. I am talking small amounts here - maybe $10,000 - $20,000. I still have my very small portfolio, but to be honest, I think I have done my dash with investing in companies. Just not the best option for me now for various reasons.

If anyone cares to contribute, I would appreciate your input.

As time marches on I am slowly moving away from individual companies and bonds and moving into managed funds and ETF to save time, research, etc and hopefully make smaller regular withdrawals easier. I'm still splitting my funds amongst a few managers - Smartshares, Kernel, Simplicity, Milford and Te Ahumairangi. I went with them for ease of transactions, websites, and of course for fees and performance.

[Perky]

Simplicity global fund has about the lowest management fee at 0.15% if you want a broad index not just USA

Kernel sp500 if you just want US or as BP has gone global top 100 would also be  good I think


Here's a link comparing simplicity to kernel offering...

https://moneykingnz.com/simplicity-vs-kernel-whos-the-better-low-cost-fund-manager/

I wouldnt overthink it too much ...there's lots of funds with similar profiles and overlap..just pick a fund that fits you and stick with it...easy enough to change if something changes down the track

[Basil]

If you are looking for extra income in retirement its hard to beat KFL, BRM and MLN.  All pay 2% tax free quarterly dividends.

[Untamed]

Yeah, I do hold KFL and BRM and have money put aside to exercise the BRM warrants later this year. I have always taken DRP but have recently gone back to cash dividends as the money has been helpful. I have bugger all of either of them though.

Just testing the waters and looking at all the options for when I turn 65 in a couple of years. Decisions like whether to leave my Kiwisaver (Balanced) as it is, or take a portion of it to invest in something "growth" (long term into retirement).

Lots to think about.

If you are looking for extra income in retirement its hard to beat KFL, BRM and MLN.  All pay 2% tax free quarterly dividends.

[Shareguy]

I have been pondering the future lately, as retirement is looming within the next few years. I have never invested in managed funds, but I feel that maybe I do need to start thinking about this as an option down the track.

Not asking for recommendations as such, but would be interested to hear how others made/make their decisions about which managed fund to invest in. I am talking small amounts here - maybe $10,000 - $20,000. I still have my very small portfolio, but to be honest, I think I have done my dash with investing in companies. Just not the best option for me now for various reasons.

If anyone cares to contribute, I would appreciate your input.

Some good suggestions have been made. I think individual stock selection is fraught with issues which is one of the reasons that I'm also channelling money over time into funds.

Depending on financial circumstances and risk tolerance as we age preserving one's capital is most important, so nothing wrong with term deposits either. At the end of the day shares are higher risk and as we no it can go wrong.

With shares it's all about diversification in my opinion. Index funds are a great way to get that and you can spread money around with various exposures and countries.

Anyway best of luck.

[BlackPeter]

Yeah, I do hold KFL and BRM and have money put aside to exercise the BRM warrants later this year. I have always taken DRP but have recently gone back to cash dividends as the money has been helpful. I have bugger all of either of them though.

Just testing the waters and looking at all the options for when I turn 65 in a couple of years. Decisions like whether to leave my Kiwisaver (Balanced) as it is, or take a portion of it to invest in something "growth" (long term into retirement).

Lots to think about.

Maybe one comment on your Kiwi saver. While nobody can predict the future, it might be  fair to assume that shares (especially in nz) are currently closer to the bottom, than they are to the top. Most other markets show aleady plenty of green shoots.

Did you think about changing your Kiwisaver from balanced to Growth? If you expect markets to recover, than this would give you more bang for your buck ...

Obviously - if you believe into some of the doomsday scenarios, or if you might need the funds short term, than better don't ;

[Untamed]

Yes, that is one of the things I am thinking of actually. But my balance is low (compared to most) - only around $41,000 currently. In hindsight I think I probably changed plans a bit early, but we all know how hindsight works.

I guess what I am thinking about now, is with less than two years until I am 65, what is the best thing to do with my KS at that point in time? I had intended to leave it as it is, but is there really any advantage/benefit to keeping a Kiwisaver going after 65, with no more government or employer contributions, and minimal (if any) ability to make voluntary contributions in retirement. Maybe I would be better at that point, to move at least some of it, to a growth fund, or even a mix of index funds/ETFs. I already hold USF and am very tempted to put at least some of it there, when the time comes.

My other thought is to use it, and probably my portfolio, to upgrade to a much more modern and more practical caravan. This one is old and starting to need more money spent on it, and will not be as accessible for me in 10 years, with a fixed bed etc. Something like a Snowy River (secondhand of course) would make my life much easier and more comfortable in my old age. Realistically, I have to continue living this lifestyle for the foreseeable future - until I'm old and decrepit enough to move to a rest home - no RV care suite for me sadly 

Maybe one comment on your Kiwi saver. While nobody can predict the future, it might be  fair to assume that shares (especially in nz) are currently closer to the bottom, than they are to the top. Most other markets show aleady plenty of green shoots.

Did you think about changing your Kiwisaver from balanced to Growth? If you expect markets to recover, than this would give you more bang for your buck ...

Obviously - if you believe into some of the doomsday scenarios, or if you might need the funds short term, than better don't ;

[Stoploss]

Discovery up 13.1 % in Dec.( Since inception 15 months 70.8 % )
 Here is the latest update.
https://discoveryfunds.co.nz/market-insights/discoverys-december-2023-update/

Also now tracked in Sharesight:25806.FundNZ Discovery Founders" Fund
 If the Beagle waits too long for a feed the Greyhounds will beat him to it .

Just waiting for the monthly update but at the End of Feb 24,  17 months since inception a dollar in is $ 1.90 in the Discovery Founders Fund- Outstanding work.(+10.97 % in Feb)

[Shareguy]

Just waiting for the monthly update but at the End of Feb 24,  17 months since inception a dollar in is $ 1.90 in the Discovery Founders Fund- Outstanding work.(+10.97 % in Feb)

So glad I am with these guys. Very happy that my decision to put more with them last month has been a good call. Look forward to the update but 10.9 percent in Feb is outstanding.

[Untamed]

I found this interview quite interesting. The brief mention of NZ was food for thought.

https://www.nzherald.co.nz/business/markets-with-madison-passive-fund-power/PQJFK23INS6VCRH5DKZF5KGH2U/?fbclid=IwAR0ZcrbZ6-0WpoRSuKwQdgpykalTr0D4ZVzwEC3P_VC81E0W_tpS2D4sKYk

[Shareguy]

Wow. The impressive growth continues with Discovery founders fund up 11 percent in Feb. Feb was a difficult market with the index up only 1.2 percent. March has also started well.


https://discoveryfunds.co.nz/assets/Newsletters/Discovery-Feb-24.pdf

[Shareguy]

Pie funds latest update


https://www.piefunds.co.nz/Market-Insights/Slice-of-Pie-Newsletter/Issue-187?utm_medium=email&utm_campaign=Slice%20Of%20Pie%20-%20March%2024&utm_content=Slice%20Of%20Pie%20-%20March%2024+CID_752720e2c3e67538e636043cc164659a&utm_source=Email%20marketing%20software&utm_term=READ%20MORE

[Stoploss]

Wow. The impressive growth continues with Discovery founders fund up 11 percent in Feb. Feb was a difficult market with the index up only 1.2 percent. March has also started well.


https://discoveryfunds.co.nz/assets/Newsletters/Discovery-Feb-24.pdf

Discovery Fund just hit 100 % return since inception , incredible result . Inception 27/09/22 1.00 Fund reval for 18/03/24 2.0076

[Shareguy]

Discovery Fund just hit 100 % return since inception , incredible result . Inception 27/09/22 1.00 Fund reval for 18/03/24 2.0076

Yes stunning result.  Glad I moved the majority of funds into Discovery and offshore.  So far its been a good call.

FB in latest state of the nation said

The latest New Zealand company earnings season set a few unpleasant new records. One of them is the ~-40% underperformance of the New Zealand market relative to the MSCI World Index since its peak in 2020; we have to go back to the period following the 1987 sharemarket crash to see a similarly weak relative performance.