web analytics

A rare opportunity

Written By: - Date published: 6:26 pm, February 19th, 2010 - 6 comments
Categories: business - Tags: ,

It is not often that I compliment the authors that write for No Minister. However I have to compliment SageNZ for his prescient post about Huljich Wealth Management – “Huljich funds and stock pumping”.. I noticed the post while I was scanning their site with my usual level of mild distaste (it usually feels like a mix between The Truth and bad late night talkback) along with a couple of other posts on kiwisaver funds. To my eye what SageNZ had uncovered looked distinctly fishy.

Then for the investors after March 2008 they do not calculate the growth from inception but instead take advantage of that nice fake buffer by calculating the unit price from the ramp rather than as a weighted average of returns from inception. The unit price is nominal and subsequent investors would not be prejudiced by the ramping but would simply have been mislead into investing in a fund that actually made a loss in its first 6 months. It would be fascinating to see their weighted monthly portfolio returns against the value of the portfolio at that time along with a link to their portfolio structure at each point. The definition of “Investment Returns” is interesting. I cannot see whether it is mark to market or actual cash.

According to the Herald today..

A probe into how Huljich Wealth Management has been reporting historical investment returns has prompted the KiwiSaver provider to withdraw its current investment statement.

The Securities Commission, in a news release, says it understands that Huljich, which is chaired by former National Party leader Don Brash and has Auckland mayor John Banks as a director – is preparing a new prospectus and investment statement.

In this case the fluff levels and crazy accounting got caught, and hopefully more of these types of dubious documents will in future. However this is exactly the type of dubious financial statement that appears to be designed to cause the financially illiterate to look at an opportunity too good to miss.

Which is what another author (adolf) at No Minister must feel like after he fell hook line and sinker for the Huljich message while having a go at Gareth Morgans kiwisaver fund GTK.. Hopefully he didn’t sink money there either. But I’d suggest that he should invest in some basic financial literacy training.

The directors, especially Don Brash and even John Banks, should have never let this prospectus go out without checking the dubious accounting. It was clearly too good to be true as even a cursory glance at the books would have shown them.

6 comments on “A rare opportunity ”

  1. lprent 1

    I should add that I recently castigated sagenz for being a scientific illiterate on climate change. But I guess that financial literacy doesn’t imply good sense in every area of knowledge.

  2. Gooner 2

    Thanks for the “compliment”. Group blogs are a difficult beast as I’m sure you appreciate. I commented on Adolf’s post mentioning the negative articles they were gettting in NBR.

  3. Gooner 3

    Am I in moderation? My comment never appeared – so here it is again.

    Thanks for the “compliment”. Group blogs can be difficult beasts as I’m sure you appreciate. I commented on Adolf’s post saying that Huljich had recently received negative vibes in a NBR article so I feel a little vindicated now.

  4. Draco T Bastard 4

    The directors, especially Don Brash and even John Banks, should have never let this prospectus go out without checking the dubious accounting.

    the question that needs to be asked though is: Did they check the dubious accounting?

  5. lprent 5

    No gooner. You aren’t moderated. But I saw adolf’s post and thought I must write on that. But sage analyzed it earlier and better.

    I’d have stopped at “too good to be true”.

    Ummm task for the weekend – get rid of the escape chars from rss comments.

    But the compliment was genuine. I have an odd standard. Compliments are hard won. I’m afraid that my highest compliment on food is “that’s edible”.

  6. Lanthanide 6

    I’m with Gareth Morgan Kiwisaver. Every month you get a report of exactly what your money is invested in, and exactly what your returns have been since inception (with a line graph) against the benchmark they compare themselves to. You also get a history of exactly when funds were received from the IRD and the date at which your employer passed them on – at the moment it looks like there’s a 6-8 week lag between when you get paid and the kiwisaver deduction turns up in your account. Everything is shown in $, rather than ‘units’, so it is quick and easy to know how much you have.

    I went through and read the negative articles about Morgan’s performance vs the others. I’m not sure exactly what the morgan number (-3.7%) represents, but the monthly number that you get is your gains *after fees and tax*. It is possible that the positive numbers they are comparing this with are just straight returns before fees and tax, don’t know.

Recent Comments

Recent Posts

  • Celebrating the Entry Into Force of the Treaty on the Prohibition of Nuclear Weapons
    [Opening comments, welcome and thank you to Auckland University etc] It is a great pleasure to be here this afternoon to celebrate such an historic occasion - the entry into force of the Treaty on the Prohibition of Nuclear Weapons. This is a moment many feared would never come, but ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Supporting disabled people to stay connected
    The Government is providing $3 million in one-off seed funding to help disabled people around New Zealand stay connected and access support in their communities, Minister for Disability Issues, Carmel Sepuloni announced today. The funding will allow disability service providers to develop digital and community-based solutions over the next two ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Voluntary saliva testing offered to quarantine workers from Monday
    Border workers in quarantine facilities will be offered voluntary daily COVID-19 saliva tests in addition to their regular weekly testing, COVID-19 Response Minister Chris Hipkins said today. This additional option will be rolled out at the Jet Park Quarantine facility in Auckland starting on Monday 25 January, and then to ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Next steps in firearms buy-back
    The next steps in the Government’s ambitious firearms reform programme to include a three-month buy-back have been announced by Police Minister Poto Williams today.  “The last buy-back and amnesty was unprecedented for New Zealand and was successful in collecting 60,297 firearms, modifying a further 5,630 firearms, and collecting 299,837 prohibited ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Jobs for Nature projects target iconic ecosystems
    Upscaling work already underway to restore two iconic ecosystems will deliver jobs and a lasting legacy, Conservation Minister Kiri Allan says.  “The Jobs for Nature programme provides $1.25 billion over four years to offer employment opportunities for people whose livelihoods have been impacted by the COVID-19 recession. “Two new projects ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • New Public Housing Plan announced
    The Government has released its Public Housing Plan 2021-2024 which outlines the intention of where 8,000 additional public and transitional housing places announced in Budget 2020, will go. “The Government is committed to continuing its public house build programme at pace and scale. The extra 8,000 homes – 6000 public ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Prime Minister congratulates President Joe Biden on his inauguration
    Prime Minister Jacinda Ardern has congratulated President Joe Biden on his inauguration as the 46th President of the United States of America. “I look forward to building a close relationship with President Biden and working with him on issues that matter to both our countries,” Jacinda Ardern said. “New Zealand ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Jobs for Nature funding will create training and employment opportunities
    A major investment to tackle wilding pines in Mt Richmond will create jobs and help protect the area’s unique ecosystems, Biosecurity Minister Damien O’Connor says. The Mt Richmond Forest Park has unique ecosystems developed on mineral-rich geology, including taonga plant species found nowhere else in the country. “These special plant ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Pre-departure testing extended to all passengers to New Zealand
    To further protect New Zealand from COVID-19, the Government is extending pre-departure testing to all passengers to New Zealand except from Australia, Antarctica and most Pacific Islands, COVID-19 Response Minister Chris Hipkins said today. “The change will come into force for all flights arriving in New Zealand after 11:59pm (NZT) on Monday ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Bay Cadets learn skills to protect environment
    Bay Conservation Cadets launched with first intake Supported with $3.5 million grant Part of $1.245b Jobs for Nature programme to accelerate recover from Covid Cadets will learn skills to protect and enhance environment Environment Minister David Parker today welcomed the first intake of cadets at the launch of the Bay ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Cook Islanders to resume travel to New Zealand
    The Prime Minister of New Zealand Jacinda Ardern and the Prime Minister of the Cook Islands Mark Brown have announced passengers from the Cook Islands can resume quarantine-free travel into New Zealand from 21 January, enabling access to essential services such as health. “Following confirmation of the Cook Islands’ COVID ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Supporting communities and landowners to grow employment opportunities
    Jobs for Nature funding is being made available to conservation groups and landowners to employ staff and contractors in a move aimed at boosting local biodiversity-focused projects, Conservation Minister Kiritapu Allan has announced. It is estimated some 400-plus jobs will be created with employment opportunities in ecology, restoration, trapping, ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Border exception for some returning international tertiary students
    The Government has approved an exception class for 1000 international tertiary students, degree level and above, who began their study in New Zealand but were caught offshore when border restrictions began. The exception will allow students to return to New Zealand in stages from April 2021. “Our top priority continues ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Tiwai deal gives time for managed transition
    Today’s deal between Meridian and Rio Tinto for the Tiwai smelter to remain open another four years provides time for a managed transition for Southland. “The deal provides welcome certainty to the Southland community by protecting jobs and incomes as the region plans for the future. The Government is committed ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • New member for APEC Business Advisory Council
    Prime Minister Jacinda Ardern has appointed Anna Curzon to the APEC Business Advisory Council (ABAC). The leader of each APEC economy appoints three private sector representatives to ABAC. ABAC provides advice to leaders annually on business priorities. “ABAC helps ensure that APEC’s work programme is informed by business community perspectives ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Govt’s careful economic management recognised
    The Government’s prudent fiscal management and strong policy programme in the face of the COVID-19 global pandemic have been acknowledged by the credit rating agency Fitch. Fitch has today affirmed New Zealand’s local currency rating at AA+ with a stable outlook and foreign currency rating at AA with a positive ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Additional actions to keep COVID-19 out of NZ
    The Government is putting in place a suite of additional actions to protect New Zealand from COVID-19, including new emerging variants, COVID-19 Response Minister Chris Hipkins said today. “Given the high rates of infection in many countries and evidence of the global spread of more transmissible variants, it’s clear that ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • 19 projects will clean up and protect waterways
    $36 million of Government funding alongside councils and others for 19 projects Investment will clean up and protect waterways and create local jobs Boots on the ground expected in Q2 of 2021 Funding part of the Jobs for Nature policy package A package of 19 projects will help clean up ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • New Zealand Government acknowledges 175th anniversary of Battle of Ruapekapeka
    The commemoration of the 175th anniversary of the Battle of Ruapekapeka represents an opportunity for all New Zealanders to reflect on the role these conflicts have had in creating our modern nation, says Associate Minister for Arts, Culture and Heritage Kiri Allan. “The Battle at Te Ruapekapeka Pā, which took ...
    BeehiveBy beehive.govt.nz
    2 weeks ago