Is New Zealand’s managed fund structure costing investors?

Jack Drury, who is in the process of establishing Seapoint Capital as a private investment partnership for wholesale investors, expects to be operational next month.

But he recently posted on his Substack his concerns about KiwiSaver and manged funds in New Zealand.

He said returns from the the providers that dominate the KiwiSaver space are lagging behind the S&P500 and MCSI World Index over the past five years, which have returned 13.9% and 16.1% respectively.

He said across Fisher International Growth Fund, Milford Global Equity Fund, Harbour Global Equity Fund, ANZ International Share fund, ASB Growth Fund and Westpac Growth fund, “every single one of these ‘active’ funds lagged both. The average fund’s performance coming out at 9.2%.