Fees eroding risk premium: Researchers

Fees charged by fund managers may make it tough for some New Zealand investors to access an investment that pays a fair equity risk premium.

AUT researchers have used market data back to 1899 to determine that a fair equity risk premium for New Zealand investors to expect over the long term is 4.76%.

That means that investors with money in equities should expect to have a return that is 4.76%per year higher than 10-year government bond yields.

They said using information over such a long period made their work more robust.

“Human expectations over the short term are volatile, it is only by using long-term data that we can truly see the view of investors return requirement of equity ...MORE»

Code proposals 'baloney' Thursday, April 12th, 6:00AM  7 comments Advisers working for small advice firms would be left with little time to advise if the code working group’s proposals are adopted, SiFA has argued. MORE»

Investors: PDS still too complicated Wednesday, April 11th, 6:00AM Investors have told the Financial Markets Authority (FMA) there is still room to improve product disclosure statements (PDS). MORE»

Make commission details publicly available: MBIE

Government officials are suggesting all advisers make publicly available information about the fees they charge and the commissions they receive, so consumers can choose who they want to deal with.

The Ministry of Business, Innovation and Employment (MBIE) has released a discussion document as part of its work to develop the regulations that will fit alongside new financial advice laws.

MBIE said its review work had shown the existing financial advice disclosure rules had a lack of transparency on some factors that influenced financial advice, including commission.

When choosing which provider of financial advice to work with, clients should be able to see details of the adviser's license, client care duties, complaints process, any limitations on the scope or nature of their advice, their fees and commissions ...MORE»

Warning: Time crunch coming for advice sector Tuesday, April 10th, 6:00AM Significant upheaval is on its way for the financial advice sector, and advisers aren’t being given enough time to prepare for it. MORE»

Milford sees more opportunities in NZ market Monday, April 9th, 6:00AM  1 comment Milford Asset Management has launched three new funds to retail investors – including an Australian version of its flagship fund, which has hit the limits of the New Zealand share market. MORE»

News Bites

Wealth Technologies challenges for NZX

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[GRTV] Feel the fear and do it anyway

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Fidelity: Incentives regime changing

Fidelity Life says its adviser recognition programme is evolving to emphasise education, professional development and corporate social responsibility. MORE»

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Goppy returns

Westpac's former head of third party distribution, David Gopperth, has returned to the industry in a regional sales manager role. MORE»

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Pie Funds plans to extend advice team

Pie Funds says it still wants to grow its adviser force as it beds in its advice offering. MORE»

Advisers: Fee move will make little difference

KiwiSaver investors will soon see the fees they pay displayed in dollar terms - but advisers are not convinced it will have any effect. MORE»