KiwiSaver nirvana

Simplicityis reducing its fees for its diversified KiwiSaver and investment funds from 0.25% to 0.24% annually from September 1.

This is its seventh fee cut since starting in 2016, as it passes on the benefits of scale to its members.

“As at 20 August, the average fee for $30,000 invested in a KiwiSaver growth fund was 1.05% per annum. Simplicity’s was 0.25% and is going even lower*” Simplicity managing director Sam Stubbs says.

“KiwiSaver is one of the most widely held investment products in a generation and is critical to many Kiwis’ wellbeing in retirement. But, in our opinion, too many managers are charging far too much relative to the value they deliver to their members,” he said.

Simplicity has around 175,000 members and $9 billion of funds under management in its KiwiSaver and investment funds schemes. It donates 15% of its management fees to the Simplicity Foundation, which has given over $11 million to New Zealand charities to date.