GMK five-year returns advertisement

In October 2012, Morningstar published their survey of five-year returns for KiwiSaver providers. We ran this advertisement in the NZ Herald to explain why the Gareth Morgan KiwiSaver Scheme (GMK) wasn’t included, and why you'll seldom find our returns data in the usual performance tables.

Read below for an overview, or see a pdf of the original advertisement published in the NZ Herald.

You’ll seldom find our KiwiSaver scheme returns in the newspaper, for a good reason.

We’ve been banging on for five years about the importance of transparent, truly comparable KiwiSaver performance reporting. Kiwis deserve to know what they would get, in their hand, if they were to cash up their KiwiSaver account.

This is why the numbers we report for GMK are:

• After all fees
• After all taxes
• Compliant with GIPS^® (Global Investment Performance Standards)
• Always available at www.gmk.co.nz/returns and updated monthly

No  other KiwiSaver provider currently reports to these global standards (although the majority of fund managers in the UK, Australia and the US do).

Without rigorous standards for reporting returns, how can savers have confidence in their KiwiSaver providers’ reported returns? How can they make a meaningful comparison?

The Government has recognised the importance of comparable performance information and will be requiring all providers to report on a consistent basis from June next year. In the meantime, we invite other providers to step up and report to the standard we believe KiwiSaver members deserve.

Here are our five-year investment returns after tax and after all fees, tracked against the relevant benchmarks, based on the GIPS^® reports below.

Note: Returns are from 1 Oct 2007 to 30 Sept 2012 (annualised); for benchmark details see the GIPS^® reports below

Here are our five-year investment returns before tax and after all fees, tracked against the relevant benchmarks. That makes them close to what other providers report, but take note that they usually report returns after most fees, not all.

Note: Returns are from 1 Oct 2007 to 30 Sept 2012 (annualised); for benchmark details see the GIPS^® reports below
 

We don’t just talk about transparency. We deliver.

Join today at www.gmk.co.nz

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GIPS^®REPORTS

Gareth Morgan KiwiSaver Limited: Conservative Composite

Note: Returns are calculated in $NZ and shown as percentages after all taxes and fees; *from 1 October 2007

The Conservative Composite contains all member assets that are managed in the conservative investment portfolio. The conservative benchmark is designed to measure a ‘conservative’ portfolio of fixed interest and equities and constitutes 42.5% 90 day bank bills, 42.5% NZ Government Bonds and 15% MSCI All Country World Index.

Gareth Morgan KiwiSaver Limited: Balanced Composite

Note: Returns are calculated in $NZ and shown as percentages after all taxes and fees; *from 1 October 2007

The Balanced Composite contains all member assets that are managed in the balanced investment portfolio. The balanced benchmark is designed to measure a ‘balanced’ portfolio of world equities and fixed interest and constitutes 22.5% 90 day bank bills, 22.5% NZ Government Bonds and 55% MSCI All Country World Index.

Gareth Morgan KiwiSaver Limited: Growth Composite

Note: Returns are calculated in $NZ and shown as percentages after all taxes and fees; *from 1 October 2007

The Growth Composite contains all member assets that are managed in the growth investment portfolio. The growth benchmark is designed to measure the equity market performance of all countries with a moderate position in cash and fixed interest and constitutes 7.5% 90 day bank bills, 7.5% NZ Government Bonds and 85% MSCI All Country World Index.

Gareth Morgan KiwiSaver Limited claims compliance with the Global Investment Performance Standards (GIPS^®). Gareth Morgan KiwiSaver Limited has been independently verified for the periods1 October 2007 through 31 December 2011. The verification report is available upon request.

Verification assesses whether (1) Gareth Morgan KiwiSaver Limited has complied with all the composite construction requirements of the GIPS^®standards on a firm-wide basis and (2) Gareth Morgan KiwiSaver Limited’s policies and procedures are designed to calculate and present performance in compliance with GIPS^®. Verification does not ensure the accuracy of any specific composite presentation.To receive a list of composite descriptions and/or a presentation that complies with GIPS^®, contact us on 0800 GARETH or at questions@gmk.co.nz

The Gareth Morgan KiwiSaver Scheme (GMK) Investment Statement is available at www.gmk.co.nz

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