Some commentators point to the low fee structures of US ETFs and question why an investor or adviser would even consider NZ managed fund solutions. The purpose of this article is to provide a “real life” comparison of a PIE fund against US equity ETFs with similar exposure. Is one structure better?

This month’s commentary looks at change – how consumer values are changing, how businesses are impacted and how advisers can respond.  The adviser response may involve new socially responsible product and this commentary also considers whether there is a risk of “greenwashing” when it comes to financial products.

In this month’s commentary, Pathfinder looks at real world implications of responsible investment (RI).  Are RI returns better, worse or no different than market returns?  What investment options are available within NZ and from offshore?

In this 3-part commentary John Berry will overview socially responsible investing.  Part One looks at what it is and how it’s evolving.

Pathfinder wrote a series of four articles through 2015 on performance fees which were published here on Good Returns.  Off the back of these articles Pathfinder was asked to help Reuters Thomson in Europe with a piece on Italian performance fees.  John Berry believes the findings of that work provide an important lesson for New Zealand financial advisers and the Financial Markets Authority.

Last month’s commentary on the Code of Conduct obligation to put “client interests first” generated a great deal of discussion.  In this follow up John Berry takes the debate a step further and asks some fundamental questions about what consumers expect, if better disclosure can help and whether a “best interests” standard is impossible to meet.  This is the second instalment of a 3-part commentary.

Imagine you’re seeing your doctor or lawyer and they tell you “just so we are clear, my duty is to put your interests first… but I won’t necessarily be acting in your best interests.”  How would you feel? Comforted and relieved?  Or surprised and confused?  In this commentary John Berry looks at a financial adviser’s duty to place the interests of the client first (but not to act in the client’s best interests).  What does this mean?  Is it what clients expect?

According to Blackrock the world needs to build US$57 trillion of new infrastructure by 2030 – a huge amount that governments cannot finance alone.  Combine infrastructure demand, financing needs and relatively stable long term returns, and it is easy to understand why interest in infrastructure investment continues to grow.

The United Kingdom will soon vote to either stay in, or leave the European Union. Pathfinder's John Berry looks at this important referendum and discusses what it means for markets and investors.

The interest rate outlook has shifted from “lower for longer” to now “very low for very long”.

Investors typically regard equities, bonds and cash as the primary asset classes.  But there are a number of other peripheral assets which fall under the “alternatives” catch-all.  In this commentary John Berry from Pathfinder looks at PIE managed fund “alternatives” that New Zealand investors can include in portfolios.

Would you buy clothes from a shop whose staff wouldn’t be seen wearing their own brand?  Or dine at a restaurant where the chef wouldn’t want to eat?  Would you think twice about investing in a company’s shares where the CEO doesn’t want to invest?   So how do you feel about investing in a fund where the portfolio manager chooses not to invest?

Intuitively we’d expect active managers to perform better than the market.  Active managers should be smarter, more responsive and adaptable.  They should pick winners, avoid losers and react to downturns.  Do actual investment outcomes support this?

Regulatory change is painful and time consuming for financial advisers and fund managers.  But it is generally accepted that change for fund managers is needed, particularly around disclosure and fees.

There are several discussion topics that are absolutely guaranteed to generate a lot of comment on websites like Good Returns.  Performance fees, Active/passive management and currency hedging. Pathfinder director Paul Brownsley presents his view on currency hedging.