KiwiSaver yet to prove its worth

Kiwibank has launched a KiwiSaver scheme which allows more direct control of funds by investors and aims to lead the market in terms of transparency and disclosure of fees.

New Zealand Funds Management's (NZFM) share hedging strategy has proven its worth over the course of the global financial crisis, according to a new paper published by the group, and should guard client portfolios at a time when markets appear over-valued.

As New Zealand is now back on a growth track, we could be doing more to reduce economic imbalances, especially external debt, Reserve Bank Governor Alan Bollard said today.

The biggest, and best, news for savers in the latest budget was the reduction in PIE tax rates in line with marginal income tax levels. This was something of a relief for the savings industry, which was slightly nervous the government would remove the tax incentives for investing in PIEs.

Finance Minister Bill English has heeded the calls by the Reserve Bank to help boost incentives for savings by cutting tax on investment vehicles, including PIEs, to 28%. [includes ISI comments]

The accounting profession's role in enhancing capital markets is a critical one says Securities Commission chairman Jane Diplock.

KiwiSaver funds provided positive returns for the fourth straight quarter, though the growth is running out of steam and ongoing fears of a debt crisis in the euro zone may be partly to blame, according to Mercer (NZ) Limited.

KiwiSaver fund managers will become indirectly accountable to their investors, instead of being able to hide behind auditors, under changes announced last night by Commerce Minister Simon Power.