Hon Craig Foss
Minister of Commerce

1 July 2014

Lower fees for KiwiSaver default schemes

Commerce Minister Craig Foss says nine KiwiSaver default providers start their seven year appointment today, offering lower fees for investors.

The default providers - AMP, ANZ, ASB, BNZ, Grosvenor, Kiwi Wealth, Mercer, Fisher Funds and Westpac - were appointed in March after a competitive tender process and assessment by an independent panel.

“A default fund aims to provide stable returns and build confidence while members consider what type of investment best suits their individual circumstances,” Mr Foss says.

“From today these default funds will offer lower fees for investors. For example, average annual fees will fall from $69 to $56.

“This will immediately benefit about 450,000 New Zealanders.

“As a requirement of their appointment, default providers will now have to offer investor education to encourage members to make an active choice.

“This reflects the Government’s commitment to develop a savings culture and lift New Zealanders’ confidence in our financial sector.”

Members can compare KiwiSaver funds’ performance, fees and service with the Sorted KiwiSaver Fund Finder calculator: http://fundfinder.sorted.org.nz/

ENDS

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