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SocietyNovember 29, 2017

Am I in the right KiwiSaver? I haven’t the foggiest – let’s find out

Security Cameras watching a piggy bank

The Financial Markets Authority has launched an interactive tool that let’s you access, and compare, basic fund information. Rebecca Stevenson extracts herself from KiwiSaver ennui to take a look at the numbers.

I have a confession. I have a KiwiSaver, and yet for the first two years or so I didn’t realise I had it. Yes, I am one of those people. I am rather hopeless with money, which is likely why my former employer stuck me in a default KiwiSaver back in the day without asking me first. I know 3% of your salary seems a lot, but when you have the ability to fritter away money like I do – well, it was definitely a blessing and I didn’t miss it. Nothing good happens after 2am anyway.

After a short stint in the ANZ default fund (the best thing about this fund was that I was with ANZ at the time, so I could see my balance whenever I logged in), for some reason a few years ago I had a rush of blood to the head and decided to change my KiwiSaver to something a little more exciting. But not too exciting, mind. I want money in that account at all costs.

So I enrolled with Milford Balanced Fund. The word on the street back then around Wellington was that Milford was the fund to be with. They may have gotten into a spot of bother a few years ago, but I’ve been pretty happy with the fund.

My KiwiSaver now has about $14,000 in it. I have been pretty patchy at depositing money; a natural consequence of taking off on maternity leave and not earning regularly. But when I have been working I always make sure I put in the minimum amount – $1042.86 – to gain the member tax credit of $521.43 (free money from the government people). The member tax credit used to be basically dollar for dollar. Up until 2011, if you put in $1042.86 you got $1042.86. So I made sure I did that, and my account was looking pretty tasty quite quickly!

MILFORD. IMAGE: SCREENSHOT

I’ve been considering changing again, but I am really not that motivated to do anything about it. But the Financial Market’s Authority has launched a handy wee tool (browser alert: this is best on desktop or laptop, OK on tablet, not mobile) that allows people to compare some key info about KiwiSaver funds. You can see what return your fund has made for the past year, and if it’s been operating long enough, for the past five years. But the really lovely bit of the tool is the ability to see your returns, minus the fees, and how that compares with the other funds.

Now Milford is what’s considered an active managed fund, as in, there are actual people making choices about what the fund invests in. On the other hand you can get index funds, which simply aim to track an index of investments – like the NZX or the ASX for shares – and they require less input from the fund manager, so generally the fees are lower. (Check out FMA’s investor resources.)

So let’s have a look at my award winning fund. Because we all know I haven’t been reading my monthly reviews. The FMA tool shows me that for the past year I have had a return on my $14,000 of 9% after fees. Stretch back five years though and the average return over that period is even better; 12.1%. Whoar! But how much of that return was kept by Milford in fees? Over one year the fees were 1.2%, and 1.4% over five. Look, I can’t complain. But could I do better?

Let’s have a look at some other funds. I’m looking at how well they did in their returns but also how much of that I would have kept rather than paying it out in fees. Maybe I should go for more growth? If I went back to an AMP ANZ Growth Fund my returns for the past year would have been 10.7% after fees of 1.3%. Not much impetus, at least on fees and returns, to move with that one.

SUPERLIFE ETHICA. IMAGE: SCREENSHOT

What about a straight ANZ Growth KiwiSaver? The returns are slightly up, but not as much as you might think considering I am in a Milford Balanced Fund, and we are comparing with the growth fund that is aiming for higher risk and higher return investments. You can also see how risky your fund is with a “risk indicator” rating of 1 being lowest risk and 7 being the highest. This fund has averaged returns of 12.7%, after fees of 1.1% over the past five years.

Let’s look at a Fisher Funds TWO Growth KiwiSaver. Again, over five years, the return is 10.3% with fees of $1.2% – again all of these fees exclude fixed membership fees.

What about the returns for new kid on the block Simplicity? Simplicity is a non-profit low-fee KiwiSaver. It has only been running for a short time, so there’s no five-year data, but for the past year someone in a Simplicity balanced fund would have earned 8.3%, but the fees are where you really see the difference at 0.3%. The Simplicity growth fund delivered 13.3% returns before fees, and as they charge the same fee across all their funds – 0.3% – the after fee return is 13% for 12 months. Not bad at all.

The fund I have most been considering switching to because there is a giant billboard near my house is Superlife. How do they compare with Milford? I’m feeling pious so let’s look at its Ethica fund, which “is a balanced investment fund that invests on a socially responsible basis, by excluding investments that do not meet defined principles”. So it’s not likely investing in cluster bombs. Phew! For the past year it has had returns of 4.2% (yikes) on fees of 0.7% And over five years it is 9.5% after fees. Not bad at all.

Helpfully, all of the funds are also compared on screen to the market index for that fund; this basically allows you to compare your fund with how similar investments have performed in the market. This helps you check if the manager is achieving what it says it’s aiming for. The tracker also lets you review and arrange the funds by their risk profile – conservative, balanced, growth and so on, so that you’re comparing apples with apples.

SCATTER PLOT. IMAGE: SCREENSHOT

Now there is a bunch of other information available on the tracker. You can look at a scatter plot and at a glance see if your fund is an outlier for any reason. Now this is pretty cool, because I can see straight away my fund is the best performing balanced fund in terms of returns (yay!). I probably could have done better in a growth fund – the scatter plot throws up the best performing fund after fees as the never-heard-of-it Quay Street New Zealand Equity growth fund. Its 148 members have received average returns over five years, after fees, of 16.2%!  But, this fund is a riskier fund than mine, rated 4 compared to the balanced fund at 3.

So what am I going to do? Milford is an annoyingly consistent performer, so probably nothing. But how fun has this been? The beauty of the tracker is it’s all really easy and in your face, it’s a great place to start looking more closely at your fund.

But it works alongside the comprehensive, and independent comparison sites such as Sorted’s fund finder which gives you detail, like the level of service each provider gives to its members. And of course the information you get from your provider needs to be in the mix too. The important thing is to start thinking about your KiwiSaver a little more often than never, and to check how much you will have for your retirement. We’ve always had universal superannuation, but there is no guarantee it will be there for us when we finally stop toiling at work so your KiwiSaver will be critical. Check out the tracker here.


This content is brought to you by the Financial Markets Authority.

The FMA’s raw KiwiSaver data is available here. The Tracker has been designed to enable users to embed it within their own website. Just look for the ‘share’ icon and follow instructions (you might need to create an account and login, but it’s free).

Keep going!
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SocietyNovember 29, 2017

When the team is also family: finding belonging with Mate Ma’a Tonga

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Growing up disconnected from her father and his side of her family, Tamsyn Matchett never understood her Tongan identity. On Saturday at Mt Smart stadium she sang the Tongan national anthem for the first time, surrounded by her Tongan brothers and sisters. 

I grew up not completely sure how Tongan I was. Actually, I wasn’t even sure I was Tongan at all. Like many other mixed Pasifika, my ethnically ambiguous looks mean I am often mistaken for a dozen other nationalities. It never really bothered me much. My friends often joked I was the Cliff Curtis of our rōpū.

Growing up as a brown kid in a pālangi family on Auckland’s North Shore, however, it wasn’t always easy having your identity muddled, and it made it almost impossible for me to feel at home with who I was. I think I often felt embarrassed by my own displacement and ignorance and that prevailed into adulthood.

Two years ago after completing a young Pasifika leadership course at work, I decided to look for my dad. Until this point I hadn’t considered that reaching out to my biological father was an option. I didn’t want to disrupt another family’s reality, didn’t want to upset my own, and didn’t feel I had anything to gain.

Ruby (Spawn) Bowman and one of the last Tongan flags available for purchase in Auckland (Photo: supplied).

Having my own mixed Pasifika child changed my outlook. Considering how she might relate to her roots and the impact that might have on her own identity means a lot to me. Also, the more I learned about Pasifika cultures, the more I realised I had everything to gain. So, armed with only Dad’s name, I jumped on Facebook to search for him.

Fast forward two years, having met numerous aunties, cousins, nieces, nephews and siblings; cuddled my Tongan nana; eating my dad’s double smoked ribs despite being a vegetarian; and reconnecting with almost every Tongan I know, I found myself amid a sea of red, supporting a team I had very little knowledge of prior to the beginning of their 2017 Rugby League World Cup campaign – Mate Ma’a Tonga.

My father is from Vaini, a small village on the south west of the island Tongatapu, with a population of less than 3,000. According to Dad, Tonga players Sika Manu (c), Daniel Tupou and Ben Murdoch-Masila are our cousins of some description. And not just the players: many members of the crowd and apparently even one of the police officers on duty at the game are relatives of mine. This is how close MMT fans feel to their team and the reason for such fervent following.

Sitting with my two younger brothers, my two sisters-in-law, my niece and nephew and my daughter and partner in the south stands at Mt Smart Stadium, all covered in MMT merchandise waving our Tongan flags high, we joined the 30,000 strong crowd to sing the Tongan national anthem ‘Ko e fasi ‘o e tu’i ‘o e ‘Otu Tonga’. I don’t know if anybody else had the pleasure of singing their homeland’s anthem for the very first time that night, but I did. The feeling of belonging was overwhelming and I will never forget that moment for the rest of my life. The only appropriate way to follow that experience was witnessing the Sipi Tau, a Kailao – Tonga’s version of the haka.

The first half of the semi-final could have been exceptionally deflating. We struggled to penetrate a strong English defence and the tries we conceded were a huge blow. I am a notoriously competitive person and probably a bit of a sore loser at times, which makes me a particularly bad spectator. But this crowd made it impossible for me to feel anything other than hope and pride no matter how dire things appeared.

Every unsurmountable moment was met with glorious song and collective voices chanting behind us urging the boys on. I can’t recall how many times I heard the beautiful Tongan woman next to me softly pray to God for a Tongan victory. As MMT remained scoreless, children and elders alike were unified in determination, in such a display of Pacific collectivism and community spirit that regardless of the outcome our support for the men on the field would be unfettered, loud and powerful.

The second half of the game will go down in history. Well, the last 10 minutes will. There is something to be said for a team that has the ability to force such a change to a semi-final scoreline in such a short period of time. And also for the fans who believed in that team’s ability to do so throughout those first 70 minutes: that is dedication, love and loyalty at its best. This game was the pinnacle moment for a small island nation punching so far beyond its weight, exceeding the expectations of a sport that makes money off individual talent but remains reluctant to invest in their collective opportunity to represent their own.

Pacific nationalism is sadly misunderstood in a country that benefits so much from Pacific communities (and not only in sport). This was especially evident when commentators, players and coaches took aim at Tongan ‘defectors’ Jason Taumololo, Sio Siua Taukeiaho, Manu Ma’u and David Fusitu’a. To assume these players were given equal opportunity to represent either side, Kiwis or MMT, misrepresents the imbalance of that choice. The same could be said about Andrew Fifita and the treatment he received after opting for Tonga over the Kangaroos.

It also shows a fundamental misunderstanding of the culture of these players, the responsibility they hold to their families and their heritage, and the unsustainable nature of Pacific Island rugby (both union and league). Of course Island players benefit from academies and school scholarships as well as support from high profile clubs in both New Zealand and Australia. That is the reality of under-investment in sporting infrastructure in the Pacific; until now, playing for an Antipodean team was the only sustainable career option.

(Photo: supplied)

As a Tongan who grew up essentially as a pālangi girl from The Shore, it has become increasingly easy for me to identify inequity. I was raised with the privilege afforded to a white family, but was still brown enough to be treated differently. I still recognise that difference today, even more so now I am connected to my Tongan family. I also recognise that the inequity experienced by my Pacific tokoua goes far beyond sport.

As a nation, we still need to address the inherent gaps in our understanding of Pacific Island cultures. The media’s reporting of the post-match celebrations and the heavy-handed behaviour of some police is testament to that fact. Allowing Pacific communities space to celebrate collectively is at the heart of being an Islander.

I am hopeful that the display of courage from those players to represent their loved ones for a pittance in comparison to what they were being offered is a wake-up call to those who need it. Imagine how much rugby union and league, and sport in general, would benefit if those players with Pacific heritage were not only eligible but were supported to play for their home nations more frequently. I know one group of people who would show up in truck-loads, ready to sell-out stadiums to back their small island nation at every opportunity.

Attending the semi-final to support MMT was a real milestone for me and my growing sense of identity as a Tongan who was born and bred in New Zealand. I am so proud of the Tongan community in New Zealand, and all those around the world who took this opportunity to celebrate what it is to be Tongan, waving flags from cars, painting fences red and white, and unifying in a way that will go down in sporting history. I am also desperately proud of my Tongan family, my dad, my aunties, my nana, and my brothers and sister and their children, who after 30 years of not knowing me have welcomed me and my daughter with so much love and kindness.

This experience reminded me of something a Samoan colleague said to me two years ago that was the inevitable driver for me to search out my family. She told me it was my birthright to know my family; that as their blood ran through my veins it meant I belonged to them and deserved to know them. It meant that I was Tongan, I was a Pacific Islander, and that above all else I should be proud of that. And on Saturday I really, really was. Mate Ma’a Tonga – Die For Tonga.


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