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Fees

The management fees we charge you cover all the expenses that come with looking after your money.

We deduct these management fees from your account weekly, which will affect your account balance and the returns you see. We don’t charge you based on performance, but on the investment fund you choose, so you should take that into consideration when picking the right investment fund for your needs. The Other Fees (Estimate) is an estimate of fees charged by underlying funds which the scheme invests in. These fees are reflected in the unit price of the underlying funds, and are therefore not deducted directly from your account.

You can find a list of all the expenses your fees help to cover below, but first, here’s what we charge, per year. 

And remember…it doesn’t cost you a penny to transfer or join our scheme, to make a withdrawal or to change your Investment Direction.

  Annual management fee (estimate)* Other fees (estimate) Total estimated annual fund charges* (as a % of your fund(s) balance)
Cash 0.45% 0.00% 0.45%
CashPlus 0.70% 0.00% 0.70%
Conservative 1.00% 0.04% 1.04%
Default 0.48% 0.04% 0.52%
Balanced 1.00% 0.11% 1.11%
Growth 1.00% 0.17% 1.17%

*Subject to the minimum described below.

Our annual management fee structure is simple – you pay either a minimum of $50 (or $40 if you are in our Default Investment Fund), or up to 1% of your account balance per year, whichever one is higher.

What your management fees cover

Your fees cover the following expenses:

  • Administration services
  • Investment management services
  • Registry and custody costs
  • Marketing
  • Auditing
  • Legal
  • Printing and postage

Other costs and expenses

As well as our fees, there are other costs and expenses associated with investing your money that you should know about:

  • The costs of buying or selling investments, such as brokerage, and fees charged by funds or unit trusts we invest in; and
  • Additional costs, charges and expenses reasonably incurred by the Scheme or the investment fund or the Supervisor or custodian that are not related to the regular ongoing costs covered by the annual management fee.

You can find out more detailed information about these expenses on our investment costs page. These investing costs and additional costs may be charged to the Scheme or the investment fund, or deducted from the accounts of the member or members who incurred the costs.

Please see the Product Disclosure Statement for the Kiwi Wealth KiwiSaver Scheme for more information on the annual management fee, investing costs and other additional costs, charges and expenses (including how they are incurred and met).

Kiwi Wealth KiwiSaver Scheme annual member statements - approximate total sum of fees calculation methodology

The approximate total sum of fees charged to a member of the Kiwi Wealth KiwiSaver Scheme for the year ending 31 March, is calculated using the following formula:

a = b + c + d - e

where –

a            is the approximate total sum of the fees charged to the member for the year ending 31 March

b            is the total annual fund charge amount for the year ending 31 March (see below for further information on the total annual fund charge amount)

c             is the member’s individual action fees1 for the year ending 31 March (currently, we do not charge individual action fees)

d            is the member’s other charges  for the year ending 31 March (currently, no other charges are charged)

e            is any credits or discounts provided to the member in respect of the fees for the year ending 31 March

 

Total annual fund charge amount

The total annual fund charge amount is the total of the amounts calculated using the following formula for each fund in the Kiwi Wealth KiwiSaver Scheme for which the member is a scheme participant during the year ending 31 March:

f x (g ÷ h)

where, for the year ending 31 March -

f              in relation to a fund, is the member’s average balance, being the average calculated from the member’s weekly balance;

g             is fund charges; and

h             is average net asset value.

The fund charges (g) in the calculation above include an annual management fee component, which is the standard annual management fee shown in the Kiwi Wealth KiwiSaver Scheme Product Disclosure Statement (PDS). However, a minimum annual management fee, which ranges from $40 per year to $50 per year, depending on the investment fund(s) in which a member is invested, applies. Therefore, if the annual management fee, once applied to a member’s balance, is less than the minimum fee, the minimum fee will be applied. For further information on the minimum fee please refer to the Kiwi Wealth KiwiSaver Scheme PDS.


Estimates used in calculating approximate total sum of fees charged to members

Where a fund in the Scheme has an exposure to an underlying fund, we may use estimates of the fees (including performance fees) and expenses that have been charged by those underlying funds.

Underlying fund fees have been estimated using end of month holdings, added over a 12 month period ending 31 March, multiplied by the total expense ratio (TER) of the underlying fund. The TER is based on the underlying funds’ disclosure documents. We have assumed that the TER disclosed applied for the entire 12 month period to 31 March.

No estimates have been used to calculate the approximate total sum of fees charged to members in respect of the Kiwi Wealth KiwiSaver Scheme Cash Fund and the Kiwi Wealth KiwiSaver Scheme CashPlus Fund, as neither of these funds currently has exposure to any underlying funds.

 

[1] Individual action fees means fees charged to an investor on an individual basis for investor specific decisions or actions.