Website to clarify hidden KiwiSaver fund fees

Press Release: Choosing the right KiwiSaver fund with the lowest fees and best performance from the dozens on offer will give the average wage-earner enough extra money over twenty years to buy a brand-new luxury car when they retire.

Wednesday, June 20th 2007, 2:06PM

The trick is knowing which one of the funds will make that kind of difference, and a website is being launched to provide that information.

"Smart KiwiSaver (www.smartkiwisaver.co.nz) is the only place where intending Kiwi savers will find independent information and true comparatives for all the funds on offer", said the director of Trident Research Systems Phillip Harris.

"We will find the hidden fees and include them in published performance data of the funds.

"Having tens of thousands of dollars more at retirement time won't come from following investment brand names, investment celebrities, going to 'independent' seminars, or trying to read wordy investment statements," he said.

"Professional investment managers and financial planners instead rely on the funds performance data that's number-crunched and provided by independent firms like Trident Research Systems.

Smart KiwiSaver's easy-to-use consumer-orientated advice and calculator website starts its work on 1 July, and is based on the same Trident Research Systems software used by investment administrators and financial planners to guide their decisions when investing hundreds of millions of dollars.

Trident Research Systems of Christchurch has been providing fund performance analysis for the finance industry for over 20 years (see www.tridentresearch.co.nz which includes references from major participants in the finance industry).

The introductory cost of joining Smart KiwiSaver is a flat fee of $29.90 for the first year.

"For someone on just the average wage who is retiring in 20 years, a 2% per annum difference in performance can mean $70,000 more at retirement time," said Harris.

Employers could confidently refer employees to Smart KiwiSaver knowing their staff can choose a KiwiSaver fund, on the basis of independent advice, that best fits their savings objectives.

"Maintaining the best balance of risk and return as time goes by means Kiwi savers can be sure they are always using the best-performing KiwiSaver fund from the dozens on offer.

"Like the funds analysis we've been providing to the financial industry for over twenty years, the recommendation provided by Smart KiwiSaver is based purely on the performance of the fund, and the risk associated with achieving that performance.

"Smart KiwiSaver's performance data will also include the fees being charged by the fund manager. The accepted measurement for this is known as the management expense ratio (MER), which acts to reduce the return from the fund.

"Smart KiwiSaver takes all costs including the MER into account when we publish a KiwiSaver fund's return," said Harris.

Press release from Trident Research Systems

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