Forum Archive Index - March 2003

["tennyson@caverock.net.nz" <tennyson@caverock.net.nz>]

Hi Bill

>
>
>Gaynor in today's NZ Herald is worth a read especially about the
>Gross Index which will enable fund managers to inflate their yields.
>May as well use the piggy bank.
> 
> 

I don't think there is a problem here as long as you understand what 
Mark Weldon is doing with the new index.  If you go and put money in 
a term deposit  at the bank and are quoted, say, 5.2% for a year with 
interest compounding every three months, you can then compare this 
figure directly with how the stock exchange index is doing.

Gaynor's argument is that we don't get the 5.2% in cash because it is 
taxed, so therefore advertising a return of 5.2% is misleading.  
Well income tax has been around for quite some time, so I think you 
would have to be pretty naive to call foul on this point.

SNOOPY




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