Tuesday, February 16, 2010

All Class

Adolf is referring to the little yapping fox terrier with the hair lip, Gareth Morgan. The one who was jumping up and down, trying to catch the attention of the big boys in the Tax`Working Group while they largely ignored him.

http://www.infometrics.co.nz/infom/about/people/garethm.jpg

Having delivered to his own Kiwisaver clients some of the most consistently poor returns since inception, now this disgraceful little big mouth uses a Herald opinion column to denigrate one of his most successful competitors.

Take these lapses with Huljich Wealth Management (New Zealand) Limited, a relatively new entrant to the financial service industry that has its heritage in a sausage and salami company. It got the former National Party leader Don Brash to chair it, and has Auckland Mayor John Banks as its other independent director.

There seems to be an awful sense of deja vu here - like former All Black Colin Meads with Provincial Finance or former TV presenter Richard Long with Hanover. Neither of those celebrity endorsements helped the public, in fact they were instruments of abuse of the public's trust. With Brash and Banks we're at a totally different level, yet the company they're part of is gaining a questionable track record.

First we had Huljich paying salespeople to sell its KiwiSaver at street corners and door to door in South Auckland - totally against the rules.........

........Then Huljich's salespeople were found selling it to the mentally impaired in institutions.

Notice Morgan conveniently glosses over the fact that Meads and Long have no financial services or senior management experience. Accordingly, his comparison with Banks and Brash is outrageous. He proceeds to stretch some indiscretions by salespeople, likely self employed contractors, into a broad denigration of the company. When you see the relative performance of the two competitors in terms of returns for client's, you can see why.

Morgan's performance has been appalling. If he were a bus driver he would have his license revoked on the grounds he is a hazard to his passengers - and certainly his clients appear to be passengers - way down in the back seat.

Here's the relative performance of both providers' balanced funds, along with that of a third industry player.

Morgan... negative -3.7%
That means in real English, a loss after he has skimmed his non performance fees.

Fidelity Life...positive +3.2%.
That means a profit folks, so who cares what the fees might be?

Huljich...positive +21.59%.
Now you know why the yapper has a burr up his butt. Pathetic little fellow.


It is not coincidence that the particular competitor he denigrates unfairly has delivered to IT'S clients some of the most consistently high returns since inception. They are unlikely to be running off with complaints to the Securities Commission.

(Notwithstanding the deplorable conduct of the sales people described in the article, I'm surprised the Herald allowed this piece to go to print carrying the names of the competitor and two of it's directors. I guess that's the price we pay for out-sourcing sub-editing to another country where these commercial relationships are not known.)

A year or so ago Morgan was writing the same sort of defamatory tripe about his competitors in the life insurance industry. There was just enough substance for it all to sound good but the stories were very selective and falsely insinuated present day malfeasance which was simply not happening.

http://www.infosightmedia.com/wp-site-images/post-images/dogs/breed-images/smoothfoxterrierguide-image1.jpg

Today he continues, this time providing the financial equivalent of Colonel Qaddafi lecturing John Key on human rights.

8 comments:

Anonymous said...

Shame on you Adolf
Morgan is one of the standout NZ minds.
Being the father of some-one who used his brains, and a guy who likes to ride motor bikes has also made him a world authority on as diverse subjects as poverty and social justice in third world countries and climate change.

The guy has always been a pillock.
Bok

Gooner said...

If you read the NBR there was an article on Huljich there a few weeks ago that said the returns were partly due to the sale of shares into the fund by Huljich himself at gross undervalue meaning upon re-sale the 21% + return is realised.

Simon said...

Mentally impaired.

Well Huljich did sell his products to the unions.

scrubone said...

I was utterly shocked to see Morgan promoting UNICEF as the "best return on charity" on TV the other day.

Is he really so ignorant? UN aid programs are notoriously wasteful, with the percentage getting to actual victims often minuscule.

I wouldn't give the man a dime of my money.

Anonymous said...

hypocrisy from Gareth Morgan:

http://www.goodreturns.co.nz/article/976494504/news-round-up.html

He's had his own disclosure issues above.

Gooner - investors will no doubt be pleased that a Kiwisaver manager would inject money into their fund to recover investor funds. Would that all acted as honourably.

Phil Sage said...

http://www.stuff.co.nz/business/3300366/Huljich-funds-under-fire

Gooner - you are correct. I believe Brash has integrity in spades but am gobsmacked he would allow such obvious ramping of returns.

That is simply fraud

Dave Mann said...

I don't really care about Gareth Morgan's opinions or the Tax Working Group, Adolf... but the disgusting and childish way you insult this guy about his size and his hare lip is, frankly beneath contempt.

You come across as an arrogant asshole.

Anonymous said...

Adolf - cheap personal attack guised as shit journalism.
Morgan's performance AFTER FEES and TAX since inception is actually one of the better ones. do your research.

http://www.gmi.co.nz/Pages/KiwiSaver/ProviderPerformance.aspx