Time's up for admin fees: Morningstar
The research house has released its latest quarterly survey of the superannuation savings scheme.
Morningstar head of manager research Asia-Pacific Chris Douglas said, while he could understand the rationale for having a dollar-based admin fee, given the set-up costs of KiwiSaver, its time was up.
“Surely the set-up costs have mostly been covered now? It especially hinders small balances, a dollar-based admin fee can eat into returns. But, don’t expect competition to necessarily lead to lower fees. Many of the smaller providers actually have higher fees. Some much higher than the larger providers.”
He said “sunlight is the best disinfectant” and more transparency would help investors make an informed decision.
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