Source: Good Returns
New research shows that KiwiSaver fees in New Zealand are lower than fees on similar funds in other countries.
KiwiSaver provider Generate commissioned Deloitte Consulting Australia to compare fees KiwiSaver fees to similar funds in Australia and the United Kingdom.
It found that KiwiSaver fees are on average lower than fees charged on similar funds in Australia and KiwiSaver default fees are on average lower than the fees for default products in both Australia and the UK.
“It’s good news for KiwiSaver members that the fees they pay have been found to be globally competitive,” Generate chief executive Henry Tongue said.
He says KiwiSaver members can have confidence that the fees charged by managers are reasonable by international standards.
“The fact our fees are lower than Australia is quite phenomenal.”
The report compared fees on default funds in each country and also fees on non-default funds which Deloitte called “choice”.
As could be expected there was a wider range of fees on Choice funds due to varying asset allocations, management style and relative scale.
Deloitte concluded; “fees charged to members of KiwiSaver default products are on average lower than fees charged to members in similar default funds in Australia and in the UK.” Read more….