Kiwi Wealth is reducing its annual management fee for its conservative KiwiSaver fund from 1% to 0.83%.
The move is one of several changes to Kiwi Wealth’s fee structure for its KiwiSaver cash, conservative, balanced and growth funds.
The fee reductions will result in estimated cumulative savings of approximately $2.5 million per year for the majority of Kiwi Wealth’s KiwiSaver Scheme members.
Joe Bishop, Kiwi Wealth general manager customer, product and innovation, said it was the right thing to do.
“The fees charged for our conservative fund hadn’t changed since Gareth Morgan Investments was originally acquired in 2012. With sufficient scale and with greater efficiencies, the time was right to reduce our fees.
“In addition to a good rate of return, our members get to enjoy the benefits of the Kiwi Wealth KiwiSaver Scheme, which include their money being responsibly invested, access to quality financial advice and our industry-leading retirement incoming planning tools.
“We will be assessing the fee structure for every fund, every year. Our promise to our members is that we will only charge a fair fee for managing their money and maximising potential returns.”
Fees overall have also been reduced for Kiwi Wealth’s growth, balanced and conservative funds by 0.02, 0.06 and 0.18 percentage points respectively. The annual minimum fee of $50 has been reduced to $40 across all KiwiSaver funds managed by Kiwi Wealth.