Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


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]

© Scoop Media

Business Headlines | Sci-Tech Headlines


Consumer NZ: Bank Complaints On The Rise, Survey Shows

Nearly one in five Kiwis had a problem with their bank in the past year, Consumer NZ’s latest satisfaction survey finds. Consumer NZ chief executive Jon Duffy said the number of bank customers reporting problems had jumped to 18%, up from 11% in 2020... More>>

Federated Farmers: Applauds UK-Australia Free Trade Deal

News that Australia and the UK have signed a free trade agreement is a promising step forward in the fight against tariffs and protectionism, Federated Farmers says.
"It reinforces the international rules-based trading framework and is important for rural producers and global consumers," Feds President Andrew Hoggard says... More>>

REINZ May Data: House Price Rises Continue; Auckland Hits New Record Median Price Again

Median prices for residential property across New Zealand increased by 32.3% from $620,000 in May 2020 to $820,000 in May 2021, according to the latest data from the Real Estate Institute of New Zealand (REINZ), source of the most complete and accurate real estate data in New Zealand... More>>

Stats NZ: GDP Climbs 1.6 Percent In March 2021 Quarter Following December Dip

Gross domestic product (GDP) rose by 1.6 percent in the March 2021 quarter, following a 1.0 percent fall in the December 2020 quarter, Stats NZ said today. "After an easing of economic activity in the December quarter, we’ve seen broad-based growth in the first quarter of 2021... More>>

Reserve Bank: Debt Serviceability Restrictions Added To Policy Toolkit

The Reserve Bank – Te Pūtea Matua and the Minister of Finance have agreed to update their shared Memorandum of Understanding (MoU) on macro-prudential policy and add debt serviceability restrictions to the list of potential tools available... More>>

Auction: 1.4 Million In Rare Vintage Watches, Gems, Jewels & Diamonds Go Under The Hammer At Webb’s

An auction event showcasing over 1.4 Million dollars in rare jewels, gems, diamonds and vintage watches is due to take place this Sunday by Auckland based auction house Webb’s... More>>