House Prices

Fund managers need to answer for a decade of dismal returns

Consumer Magazine this week published its survey of international share funds and, like its survey of balanced funds last month, it made dismal reading.

Sunday, July 04th 2004

A handful of the 25 managers "coped with the challenges reasonably well, giving average returns of five per cent after fees and tax.

"But many have done appallingly," the magazine found.

Five of the funds didn't even match inflation so investors had less money in real terms than they had put in ten years earlier. So much for saving for your retirement!

Tower had one fund at the top of the list and one at the bottom. Tower GAM Global Gateway had net annual returns of 6.6 per cent over the 10 years while the Tower Global Fund returned a "truly dismal 1.4 per cent".

Over the ten years, the Morgan Stanley World Gross Index (MSI) showed gross returns of 6.4 per cent in New Zealand dollars – exactly the same as the average return of putting your dosh in the bank on six-month revolving term deposits.

More than half of the funds examined by Consumer did not match the MSI return.

Read More - Opens in a new window
Unity First Home Buyer special 3.99
ICBC 4.25
SBS FirstHome Combo 4.29
Co-operative Bank - First Home Special 4.39
TSB Special 4.49
ANZ Special 4.49
ASB Bank 4.49
SBS Bank Special 4.49
Unity Special 4.49
Westpac Special 4.49
Kiwibank Special 4.49
TSB Special 4.49
ANZ Special 4.49
Westpac Special 4.49
Wairarapa Building Society 4.59
ICBC 4.59
BNZ - Std 4.65
AIA - Go Home Loans 4.65
Unity Special 4.65
ASB Bank 4.65
SBS Bank Special 4.65
Nelson Building Society 4.69
SBS Bank Special 4.99
Westpac Special 4.99
ICBC 4.99
TSB Special 5.39
BNZ - Std 5.39
ANZ 5.39
AIA - Go Home Loans 5.39
ASB Bank 5.39
Co-operative Bank - Owner Occ 5.49
Kainga Ora 5.49
SBS Bank 5.59
SBS Construction lending for FHB 3.74
CFML 321 Loans 4.25
AIA - Back My Build 4.44
ICBC 5.39
Heartland Bank - Online 5.45
Co-operative Bank - Owner Occ 5.70
Co-operative Bank - Standard 5.70
ANZ 5.89
TSB Special 5.94
ASB Bank 5.99
Pepper Money Prime 5.99

More Stories

Thursday, October 09th 2025

New rules for meth contaminated houses

REINZ welcomes regulation of methamphetamine contamination in rental housing.

Spending confidence low and likely to fall further

Thursday, September 18th 2025

Spending confidence low and likely to fall further

More than 40% of households who took part in the latest Westpac McDermott Miller Consumer Confidence say their financial position has deteriorated over the past year.

Four decades of 6-7% yearly house price growth ending

Friday, March 21st 2025

Four decades of 6-7% yearly house price growth ending

New Zealander’s reliance on property capital gains in the mid-single digits is at an end.

[TMM Podcast] Yelsa serves up “marine reserve” of property buyers

Friday, January 31st 2025

[TMM Podcast] Yelsa serves up “marine reserve” of property buyers

It’s been years in the making and former real estate agent Mike Harvey is now coming to market with his platform matching buyers and sellers, an offering he says will be a gamechanger for the industry.