Friday, October 30, 2009

The Hare-Lipped Fox Terrier

Do you remember the extraordinary accusations levelled against the life insurance industry by know-all commentator Garth Morgan? How they were all a bunch of crooks manipulating unit prices and bonus levels to remove policy holders funds and divert them into the pockets of the evil shareholders - or words to that effect. (I can't find the actual piece.)

Well it appears the little fellow had to swallow his tongue the other day and publicly apologise to a bunch of lawyers who he had potentially defamed.

Adolf wonders when he will publicly apologise to his Kiwisaver clients who have enjoyed the worst returns of any provider, including his enemies the evil life companies.

Gareth Morgan's funds, which were included in a KiwiSaver survey for the first time, came out at the bottom or close to it in every category they are in over one year.

Gareth Morgan's conservative KiwiSaver fund was 13th out of 14 conservative funds over one year with a return of 3.69 per cent and bottom out of 21 funds in the balanced sector with a return of -0.20 per cent.

In the aggressive growth fund category Gareth Morgan's fund was third from the bottom on -5.03 per cent per over one year behind AMP's aggressive fund, which was -9.76 per cent and First NZ Capital's Aggressive Kiwi Fund, on -8.66 per cent.


pdm said...

It will be the Fees he is charging Adolf.

As I recall that was always his line - investors funds are losing value because of the fees.

Chickens coming home to roost!!!!!!

WAKE UP said...

Personally, I'm suspicious of anyone who deals in money as product or commodity

...similar to the old saying: anyone who WANTS to be a politician should be automatiacally disqualified :)

Anonymous said...

Kiwisaver is just a govt. handout to fund managers because you have to use one. What a joke.
I never joined for the reason that I could see no reason why I should have to have someone else decide how to invest for me.

Budgieboy said...

I can't say I draw any satisfaction from the fact that his Kiwisaver clients have suffered but I can't deny that seeing the sanctimonious little twat being bought down to size is reasonably pleasing.

Cactus Kate said...

Agree. Who cares about fees when your returns are crap?

Poor Gareth is one of the few finance types who lives in the shadow of his son who is far more brilliant than Pops who is content more on loudly motorbiking around the world than involving himself in serious finance analysis these days loudly bragging about how much money (that his son made) he can give to charity.

Falafulu Fisi said...

I have great respect for Dr. Morgan for his frequent insightful economic commentaries in our media, although I don't like his global warming views.

Giving money to fund managers , who're suppose to make money for investors is no difference to investors doing the investment themselves for the returns they will get minus the fees.

gomango said...

I'm no fan of Gareth Morgan - he is entirely self serving in his criticism of other industry players (look at me - I'm the only honest person out there!), he has flip flopped on issues over time and he clearly got some facts wrong in his latest book. But worst of all he comes across all smarmy. And his whole motor biking thing is a lame copy cat effort of Jim Rogers. But in fairness, I think the criticism of the kiwisaver returns is wrong. On a 2 year history the GMK funds have actually done better than most. The funds reported as doing so well over the last year are the same funds that got hammered especially hard last year whereas the GMK fund did not suffer as badly. The good performers this year are just coming off a low base. Check the longer returns.

Pa Anoid said...

Gomongo is correct.
From Sept 07 to Sept 09, The Morgan Growth fund has returned -5.9% per Annum.
By comparison ING AMP ASB and AXA have returned from -8.8 to -9.4% pa.
The use short term data to derive long term extrapolations, is the same trap that Climate change alarmists have fallen into.

Flaco said...

Anyone who makes Kiwisaver (or other) investment decisions based only on 12 month returns rather than performance since inception needs a head check.

Cactus, good points but you really think that it's just Gareth working there? ;)

They have set up a resource to compare the major providers over any timeframe: