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Simplicity reaches $1B with best in class fund returns

Not-for-profit KiwiSaver and investment fund manager Simplicity reached $1 billion in total assets under management this week. This has been achieved in under three years, and almost two years ahead of schedule.

In the latest Morningstar KiwiSaver quarterly survey to 30th June 2019, every one of Simplicity’s funds ranked 1st or 2nd amongst at least 20 competitors.

Simplicity’s non-KiwiSaver Investment Funds performed as well, with all ranking either #1 or #2 amongst up to 61 competitors, according to

“These are very satisfying returns,” said Sam Stubbs, Managing Director of Simplicity. “It’s like sending a team to the Olympics, and every athlete winning a gold or silver medal,” he said.

“As these numbers show, to make the most money for members low fees really matter. It also highlights that the high fee managers, including the banks, are underperforming. That has cost their members millions of dollars in poor returns over the last 12 months.”

As a not-for-profit manager, Simplicity manages money to achieve the highest returns to investors.

“Low fee management is the dominant trend globally,” said Mr Stubbs. “But it doesn’t grow bank profits or fund manager bonuses, so they have resisted change,” he said.

Mr Stubbs said the latest performance numbers would be relevant for the Government’s review of default providers.

“When every single default fund underperforms a low-cost provider like Simplicity, you really have to ask whether the current system is working for KiwiSaver members. The Government review underway is very timely,” said Mr Stubbs.

About 20% of KiwiSaver members are still in default funds.

Nonprofit Simplicity is NZ’s fastest growing KiwiSaver plan. Including its non-KiwiSaver funds, Simplicity has more than 28,000 members. Approximately 75% of its FUM relates to KiwiSaver funds.

See chart below for performance figures.

[Corrected 1/8/19 to amend Kiwisaver Growth Fund ranking]

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