Value of index tracking seen in the numbers, says Kernel
The latest KiwiSaver data for Q3 released last week showed all multi-sector funds delivering a positive performance, with funds’ returns in close range from 2 to 5%. Kernel topped the High Growth and Cash categories across the 1 year time period, and came through second in Balanced. In other asset classes, Kernel took out the spot for highest returns over the 1 year period in international shares and second in property.
Kernel Wealth chief executive Dean Anderson said going forward, scale would be a challenge for active managers, even if they continue to deliver positive results over the long term.
“When you're dealing with such a big pot of money and the New Zealand market that's quite small and not that liquid, that forces them to put money overseas.”
“And I guess the investor question is, why do we think we know that a little manager at the bottom of the world is going to have an edge over anybody else,” he said.
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