Changes to default providers won t lower KiwiSaver fees as Govt hopes, say experts
14 May, 2021 05:00 PM
6 minutes to read
The number of KiwiSaver default providers will reduce from nine to six. Photo / Getty Images
Experts have poured cold water on the Government s hopes that a major shake-up to the KiwiSaver default providers will bring down fees across the industry. And the majority of those appointed as new default fund providers say the low fees on offer through their default schemes won t be applied to their other funds.
On Friday the Government announced the nine current default KiwiSaver providers would be slashed to six from December 1.
New Financial Markets Authority: Smartsharesâ SuperLife Selected As Default KiwiSaver Date
13/05/2021
The selection of NZX’s Smartshares as one of the six default KiwiSaver providers reflects a focus on low fees and a straightforward, transparent investment approach, says Smartshares CEO, Hugh Stevens.
Smartshares’ SuperLife KiwiSaver scheme cares for more than $1.2 billion on behalf of 31,350 New Zealanders.
Mr Stevens says the SuperLife KiwiSaver scheme has proven popular with members – “We provide financial wellbeing with a compelling combination of low fees and a passive approach to investing that we believe delivers better long-term results.
“Our KiwiSaver scheme has easy-to-use conservative, balanced and growth funds but also provides KiwiSavers who want more choice with access to a wide range of Smartshares Exchange Traded Funds. Our new default balanced fund will be an attractive option for cost-conscious New Zealand investors.”