Simplicity cuts fees for eighth time
Simplicity is cutting fees on its diversified KiwiSaver and investment funds as the non-profit fund manager marks its 10th anniversary.
From October 1, the annual fee on all its diversified funds will fall from 0.24% to 0.23%.
It is Simplicity’s eighth fee reduction since it launched in 2016 and represents a 4.2% reduction in the amount investors pay.
The manager says the latest cut reflects its commitment to passing on the benefits of increasing scale to members.
Simplicity now has more than 200,000 members and more than $12 billion invested.
Fees have steadily declined as the business has grown. Simplicity removed annual membership fees for people under 18 in 2018, reduced its general membership fee in 2020 and removed it altogether in 2021.
Fund fees were cut to 0.30% and then 0.29% in 2023, followed by reductions to 0.25% in 2024 and 0.24% last year.
Simplicity says keeping fees low is important for long-term investors because money not paid in fees remains invested.
Research by Simplicity chief economist Shamubeel Eaqub found higher KiwiSaver fees did not, on average, produce higher returns after fees over the past decade.
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