The Code of Professional Conduct sets out the duty of care that financial advisers owe their clients.  Under Code Standard One advisers must “place the interests of the client first…”  In this commentary John Berry looks at what this duty means.  Is it the same as "acting in the best interests of the client" - a common obligation among professionals - or is a different standard imposed on New Zealand's financial advisers?  Should anyone care?

Research consistently shows a fund’s total fee burden impacts on long term returns for investors.  As a general rule lower fund costs mean more left over for investors.  This is certainly true of deep liquid markets (like large cap US equities) where information and skill is widely disseminated – it’s hard for one manager to repeatedly outperform over for 3-5 year periods.  The bi-annual S&P Dow Jones SPIVA report on active manager (under) performance is compelling reading.

For financial advisers and investors the working of fund managers can be a mystery.  Exactly what does a fund manager do – and more importantly, how do they do it?  Part of the issue with understanding fund managers is to know what questions to ask.  

In the first part of a two-part series Pathfinder Asset Management director John Berry explores where private equity should fit into KiwiSaver.