Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Kiwisavers Need Support And Security Says Tower

24 May 2006

Kiwisavers Need Support And Security Says Tower

TOWER Investments is urging investors to select their KiwiSaver provider carefully, based on a proven track record of investment expertise, and says educational assistance and financial advice will be crucial to investors being able to make informed decisions.

CEO, Mr Tony Hildyard, said that the coming year would see investors inundated by potential KiwiSaver providers presenting their strengths via the workplace and the media. ‘Superior returns’ is a common selling point in the investment industry but he says that it will be important for investors to select a provider who can demonstrate not only a history of solid returns but also robust risk management.

“It’s all very well being shown a high historic return but you have to ask about the risk taken to achieve that return as well as the relative investment cycle, and be able to assess what impact that will have on future expected returns. Your provider needs to be there for you in the long term, from the present right through retirement.”

“Education programmes designed to assist future KiwiSavers with their choices of provider and fund will be available in coming months,” he said “and financial advisers will play an important part in helping investors decide what’s right for them. If the decision proves too difficult then investors will be able to fall back on the government’s choice of default providers.”

Today the government is due to release the Request for Proposals which will be part of the process to select a limited number of default KiwiSaver providers. Responses are due back to the Ministry of Economic Development by 7 July.

“Investors can be assured that a panel of investment professionals, experienced in superannuation and investment, will be making a very rigorous assessment of potential providers’ investment expertise,” said Mr Hildyard.

“TOWER will be submitting a proposal to be a default provider and while reward for risk will not be the only criterion for selection, it is expected to be an important consideration. Other key considerations will be the quality of the people within that organization, the effectiveness of their processes, the provider’s philosophy and, of course, the resulting performance.”

The 31 March Mercer Managed Fund Survey places TOWER Investments 1st for reward for risk over 3, 5, 7, 10 and 15 year periods.

Mr Hildyard said that TOWER is very proud of its consistent history of prudent investment management for New Zealand investors over such a long time period.

“We like our clients to feel confident that, whatever their particular risk profile, experienced and knowledgeable people operating within rigorous processes are working on their behalf to get the best return for as little risk as possible,” he said. “It’s a no surprises approach that may not make headlines but gives our clients the security they need to stick with us for the long term. That’s what retirement saving is all about.”

Mr Hildyard said that TOWER had participated fully in the KiwiSaver submissions and consultation process. “It is crucial for future savings habits and wealth accumulation that the end investor has a good investing experience with KiwiSaver,” he said. “Investors have to be comfortable that they are with an investment expert who will manage their investments prudently through all investment cycles and be there for them when they eventually retire.”

ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

ScoopPro: Helping PR Professionals Get More Out Of Scoop

Scoop.co.nz has been a fixture of New Zealand’s news and Public Relations infrastructure for over 18 years. However, without the financial assistance of those using Scoop in a professional context in key sectors such as Public Relations and media, Scoop will not be able to continue this service... More>>

Insurance: 2017 Worst Year On Record For Weather-Related Losses

The Insurance Council of New Zealand (ICNZ) announced today that 2017 has been the most expensive year on record for weather-related losses, with a total insured-losses value of more than $242 million. More>>

ALSO:

Crown Accounts: Govt Books In Line With Forecasts

The Government’s financial statements for the four months to 31 October indicate the books are tracking along with Treasury’s Budget forecasts, Finance Minister Grant Robertson says. More>>

ALSO:

Expert Reaction: Ross Sea Region Marine Protected Area In Force

Sweeping new protections for Antarctica's Ross Sea will come into effect on Friday 1 December. After five years of debate, the marine protected area (MPA) was agreed in 2016 after a joint proposal by New Zealand and the United States... More>>

ALSO: