Mirror, mirror on the wall, who has the best lifecycle of them all?
Most advisers know that around 90% of the variation in a KiwiSaver member’s returns is due to asset allocation and that younger investors should have a greater exposure to growth assets than older investors.
They also know that KiwiSaver is a scale game, as member balances are too low to adequately compensate financial advisers for providing much more than a cursory financial overview.
It is therefore logical that the legislation is supportive of lower-cost robo alternatives and that the Ministry of Business, Innovation and Employment (MBIE) and the Treasury have announced they will be considering making the default option a lifestages approach.
NZ Funds recently commissioned independent experts MyFiduciary to review the life-stages options available in New Zealand. Here are some selected insights from their report.
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