Business www.guardianonline.co.nz
Tuesday, February 11, 2020
11
Ashburton Guardian
Adviser questions KiwiSaver tool
quire plain English and to have us refrain from using industry jargon as much as possible.” Hartmann said it used after tax and fees data to give everyday people the closest idea to what they will receive in the hand, after fees and tax. “Simply repeating institutional practices can be unhelpful and incomplete to wider audiences.” He said the concept of comparing to a benchmark would need to be taught before it could even be used by the general public. “We offer averages of a fund’s peers, such as an average of
balanced fund performance to compare with a specific balanced fund. This serves the same purpose as the industry’s use of benchmarks: to help compare the performance and volatility of the fund within its particular market.” Hartmann said while it agreed with Sheather that a focus on performance returns could lead investors to assume it will predict future outcomes that was why it had chosen to make the information less prominent to other data. “Knowing that users will be
Guardian Shares & Investments
■■THE WEEK AHEAD
Compiled by
ON THE MARKETS
quarter a year ago). This would be the first improvement in year-onyear earnings since December 2018. The earnings season continues this week, with more than 90 S&P 500 companies due to announce quarterly results. Some of the higher profile global companies set to release earnings include Air Liquide, Martin Marietta Materials, CVS Health, Alibaba, Coca Cola, Nestle, Republic Services and Zoetis. With the earnings season around two-thirds complete, it has been a solid one so far. Of the 320 S&P 500 companies that have reported to date, 74 per cent have exceeded earnings expectations. Key US economic releases will include inflation and retail sales, while Fed Chair Powell testifies to Congress today and tomorrow. Coronavirus developments will take centre stage, and investors will watch with interest as a number of factories reopen after the extended Lunar New Year holiday. The pace of new cases being reported has slowed and the death rate remains low at around 2.0 per
Jeremy Flood works for Craigs Investment Partners. This article should not be deemed as advice. Disclosure statement available free of charge and on request.
Company CODE
a2 Milk Company ATM Air NZ AIR ANZ Banking Gr ANZ Argosy Prop ARG Arvida Gr ARV Auckland Intl Airpt AIA Chorus CNU Contact Energy CEN Ebos Gr EBO F&P Healthcare FPH Fletcher Building FBU Fonterra Share Fund FSF Freightways FRE Genesis Energy GNE Gentrak Gr GTK Goodman Prop Tr GMT Heartland Gr Hldgs HGH Infratil IFT Investore Property IPL Kathmandu Hldgs KMD Kiwi Property Gr KPG Mainfreight MFT Mercury NZ MCY Meridian Energy MEL Metlifecare MET NZ Refining NZR NZX NZX Oceania Healthcare OCA Port of Tauranga POT Precinct Properties PCT Prop for Industry PFI Pushpay Holdings PPH Restaurant Brands RBD Ryman Healthcare RYM Sanford SAN Scales Corp SCL Skellerup SKL Sky Network TV SKT Skycity Ent Gr SKC Spark SPK Stride Prop & Inv SPG Summerset Gr Hldgs SUM Synlait Milk SML Tourism Holdings THL TrustPower TPW Vector VCT Vista Gr Intl VGL Vital Hlth Prop Tr VHP Westpac Banking WBC Z Energy ZEL
Buy price
1539 278 2720 140.5 186 862.5 630.5 713 2335 2389 527 385 854 313 225 227 184 545 182 345 155 4025 516 543 688 158 136 118 730 186 251.5 450 1310 1575 762 450 235 62 356 471 236 887 790 289 745 346 315 288 2595 436
Sell price
1550 280.5 2730 141 188 867.5 639 724 2345 2395 529 386 857 318.5 245 232 186 555 184 354 156 4081 529 547.5 690 160 137 120 732 187 252.5 458 1330 1580 766 460 236 66 357 475 237 895 796 290 760 351 319 295 2618 437
Last sale
1548 280 2720 141 188 865 638 722 2345 2395 528 385 856 316 230 230 185 550 184 354 156 4025 525 545 688 160 137 119 731 187 252.5 455 1302 1575 762 455 235 64 357 475 236 893 791 290 755 350 319 290 2597 437
At close of trading on Monday, February 10, 2020
Daily Volume move ’000s
+12 – +19 –2.5 +1 –10 +5 –1 –1 –18 –13 – +13 –7.5 +11 –2.5 – +5 +1 +10 – –65 –4.5 –7 –1 +2 – –1 –19 –0.5 – +1 +3 –18 –11 –14 –5 –2 –5 +3 –2 –7 –22 –10 +10 –3 –7 +2 +2 –2
643.9 896.7 7.19 546.5 901.9 949.2 289.1 890.4 109.1 366.6 991.0 76.48 41.52 247.8 287.5 691.0 230.0 620.1 80.44 478.0 833.4 361.6 520.4 1.6m 1.3m 506.8 154.7 1.7m 122.7 1.0m 138.4 120.7 13.56 511.3 8.54 73.51 121.0 907.6 464.3 1.9m 129.3 539.7 142.3 371.1 67.61 126.2 223.0 222.0 33.98 406.7
S&P/NZX 50 Index Gross 11930 11838 11746 11654 11562 11470
7/2 10/2
Jeremy Flood
S&P/NZX 50 Index Gross constituents
31/1
G
cent, although the impact of the disruption on economic growth could be significant. US politics will also be in focus, especially after the reporting shambles at last week’s Iowa caucuses. Investors might instead look to the New Hampshire primary today for clearer guidance of how the Democratic nomination race is shaping up. Domestically, the Reserve Bank will be the highlight tomorrow afternoon. While no change to interest rates is expected, it will be particularly interesting to hear what the Bank thinks about the likely flow-on effect of the situation in China. The local reporting season also starts this week, with Contact Energy, Sky TV, Sky City and NZX set to kick things off over the coming days. Across the Tasman, Transurban, Amcor, CSL and Goodman Group will be some of the highlights. Outlook statements will be eagerly awaited, with investors keen to hear just how much disruption local companies have seen across Chinese customer bases or business units.
NEW ZEALAND SHARE MARKET
Source: NZX and Standard & Poors
24/1
Virus effect on sharemarkets lessens lobal sharemarkets rallied strongly last week, bouncing back from the previous week's losses. The S&P 500 hit a new record high on Thursday, shaking off the coronavirus worries against the backdrop of a strong earnings season. However, US shares finished the week on a more cautious note as investors began to consider the impact of the disruption in China on the global economy. US shares were up 3.2 per cent for the week, with Europe and the UK also posting impressive gains. The Australian and New Zealand markets finished in positive territory, although only marginally. The top NZX 50 movers last week were Kathmandu, rallying 15.1 per cent, Gentrack which gained 9.5 per cent and Vital Healthcare, rising 3.6 per cent, while Vista Group dropped 8.9 per cent, Synlait Milk fell 7.4 per cent and Fonterra lost 4.9 per cent. The NZ dollar was mixed, falling against the Australia and US dollar, but rebounding against the British pound and holding its own against the euro. Interest rates moved higher, both here and offshore, while oil prices fell for the fifth consecutive week. Another busy week looms for global investors, with the reporting season set to continue over the coming days. The global reporting season has now passed its peak, with around two-thirds of companies having reported. Aggregate S&P 500 earnings have pushed their way into positive territory and are now sitting at 0.7 per cent (compared with the same
looking for performance, we have opted to downplay it.” Hatmann said it had opted to compare five-year performance figures in order to be as inclusive as possible. “We think five years is long enough to keep a long-term perspective while including as many funds as possible in the comparison tables.” He said many newcomers’ providers would be excluded for a long period of time if it only used those with more than a 10-year track record. Hartmann said Sheather appeared to be targeting Sorted as a proxy for his criticism of the KiwiSaver industry but it could only work with the data it had which was provided through statutory disclosures by the providers. “As to holding us ‘partly responsible’ for ‘painfully high’ KiwiSaver fees, we think our tools have done their part to contain them. When the KiwiSaver fund finder was first published ... there was a provider whose fees resulted north of 3 per cent, able to be seen for the first time. By only months after our release, it had exited the industry. Sunlight is a great disinfectant.”
17/1
A financial adviser has hit out at the Government’s money education site Sorted over its KiwiSaver tool claiming the way it presents the information to the public is “potentially” misleading and may lead to poor decisions. But Sorted’s managing editor Tom Hartmann says it has made certain choices in how it presents information on KiwiSaver based on the fact it is trying to communicate with the general public in a language they will understand. Tauranga-based adviser Brent Sheather said it was industry standard to use KiwiSaver fund performance data that was after fees but before tax but the Sorted site compared after tax data. “This means that one has to make some rather complex assumptions on tax to adjust standard benchmark data to an after tax basis.” Sheather said the website also did not provide benchmarks to compare the fund performance to – a standard that professional investors like the New Zealand Superannuation Fund used. “Most retail investors, even if they knew what they needed,
would give up.” Sheather was also critical of Sorted’s focus on performance data rather than fees. “By prominently displaying five-year performance and enabling users to rank funds by performance the Sorted website encourages performance-chasing by investors. “The Sorted website only provides short-term performance data despite a number of KiwiSaver funds having 10 years of performance history. However, historic performance, even for 10 years, offers little information as to which funds will outperform and the shorter the period the more misleading the information.” Hartmann said the goal of its comparison tools was to provide KiwiSaver investors and those investing more widely with the best and most relevant data available to the public. “. . . the Sorted site is not built for expert investors at the NZ Super Fund. It’s for a wide audience of actual and potential KiwiSaver members, including secondary students who utilise these tools in our Sorted in Schools programmes. This means they re-
10/1
By Tamsyn Parker
q S&P/NZX 50 Gross
11,702.59 –58.29 –0.5%
q S&P/NZX 20 index
7,719.96 –39.93 –0.51%
q S&P/NZX All Gross
12,651.58 –66.35 –0.52%
p Rises 41 q Falls 88 Top 5 NZX gainers Company
Moa Gr Plexure Gr Gentrak Gr PaySauce Kathmandu Hldgs
daily % rise
+11.54% +8.86% +5.02% +4.11% +2.91%
Top 5 NZX decliners Company
TIL Logistics Gr Just Life Gr Napier Port Smartpay Holdings Tourism Holdings
daily % fall
–5.71% –5.00% –4.14% –4.11% –3.33%
METAL PRICES
Source: interest.co.nz
p Gold
1,572.65
London – $US/ounce
+9.35
+0.60%
p Silver London – $US/ounce
17.77
+0.01
+0.06%
q Copper London – $US/tonne
5,653.0
–73.0
–1.27%
NZ DOLLAR
Source: BNZ
Country
As at 4pm Feb 10, 2020
Australia Canada China Euro Fiji Great Britain Japan Samoa South Africa Thailand United States
TT buy
0.977 0.8702 4.7771 0.6001 1.4655 0.5066 71.95 1.7953 9.8294 20.41 0.6548
TT sell
0.9433 0.8375 4.1903 0.5737 1.3281 0.4885 68.88 1.5625 9.4679 19.41 0.6309
Disclaimer: NZX and MetService have endeavoured to ensure the correctness of the information; neither NZX, MetService related companies, nor this newspaper, nor any of their respective employees or agents make any representation as to its accuracy or reliability nor will they, to the extent permitted by law, be liable for any loss arising in any way from, or in connection with, errors or omissions in any information provided (including responsibility to any person by reason of negligence). Please note: All products and services are subject to change without notice.
