Huljich corrects KiwiSaver performance numbers
Huljich Wealth Management has confirmed reports that questioned some of its KiwiSaver performance numbers and plans to update its prospectus and clarify the published accounts.
Friday, February 19th 2010, 7:59AM 
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The clarification comes after it was alleged assets were transferred into the funds at lower prices than their actual value.
In a comprehensive press release Huljich has explained what happened and how much managing director Peter Huljich put into the funds.
Huljich has promoted its funds on performance and says the updated accounts make little change to its ranking against other KiwiSaver funds.
Peter Huljich says the amendments will clarify that certain income in the six months to March 31, 2008 and 12 months to March 31, 2009 was not investment income, but funds contributed by him personally on two occasions as compensation for the manager investing overweight or not diversified to the extent required.
The events arose in the early days of the funds, partly due to the small size of the funds at that time. The amendments also disclose profits from shares made available to the KiwiSaver Scheme by the manager at the discounted price available to the Manager under sub-underwriting agreements, which was less than market value.
In the six months to March 31, 2008 the compensation provided was $8,573 and in the 12 months to March 31, 2009 the compensation was $141,535.
"I provided compensation because I felt morally responsible for the two particular investment decisions, which proved disappointing. I believed compensation was in the best interests of our members. There was no intention of boosting the performance of the funds through these transactions. "
"I would like to assure our members that we will continue to focus on maximising returns and that these amendments make no difference to the actual amounts of previously advised returns they received."
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Comments from our readers
Read the Huljich "plain english" promo material and you would clearly believe you are investing across a diversified mix of asset classes and securities. Very few would have realised they can also spike returns by related party lending, sub-underwriting (for a fee presumably) and when it all turns bad by throwing in a few extra $.
Where were the trustee and Sec Com when all this was going on? Asleep at the wheel it seems until the recent media attention.
Shouldn't the regulators be poring over the new Prospectus? Going over it with a fine tooth comb? Calling the provider to account? You know, things that might protect the public?
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