Captain Morgan’s sinking ship
The rum old Gareth “Captain” Morgan continues to demonstrate that the success of his Kiwisaver Fund is inversely proportional to the amount of time he opens his yap to criticise his competitors. Even Adolf at No Minister reckons it’s Time To Boot The Yapping Fox Terrier::
“[Yesterday's published summary from Morningstar is a jaw dropper, coming just a few days after Morgan had the sheer gall to use his Herald column to castigate his competitors for poor performance. Here's the 'money quote:-'‘"The biggest contrast is in the growth sector where the Gareth Morgan Growth fund has attracted the most money at $121 million but is the worst performer over two years and bottom of the pack over the last three months.
‘The Gareth Morgan Balanced fund was also the largest balanced fund at $165 million but was second from bottom over two years and 18th out of 27 over the last three months.’
“It's time this financial undertaker made an undertaking to get out of the advice business. Clearly, he is a not much more than a mouthier version of Bryers and Petrecovic.”
The Morningstar figures on Kiwisaver providers show once again that the whole Kiwisaver scheme is little more than welfare for suits with nothing in them—a mechanism whereby your money (and a good dollop of taxpayers’ money as well) is delivered to puffed-up paper shufflers to make smaller than the rate of price inflation (and if your chosen provider is Gareth Morgan, much smaller) from which they extract exorbitant fees.
Inflation only makes the incredibly poor returns they deliver even poorer. And frankly, as we should all know by now, inflation is just another word for stealing from savers: stealing from small savers, and giving it to suits to piss up against a wall. Get rid of monetary inflation, and ipso facto you get rid of the desperate need for fancy schemes that purport to address the superannuation problem.
A comment at Ron Manners’ blog makes this point perfectly:
“If the Reserve Bank hadn’t presided over such an enormous rise in the money supply, maybe there wouldn’t be such a pressing need for superannuation [and Kiwisaver] in the first place….”
Think about that while you’re perusing your poor returns.