BNZ has welcomed the release of the FMA’s review of Managed Fund Fees and Value for Money this morning.
BNZ GM Wealth, Peter Forster, says “BNZ supports the FMA in its ongoing focus to deliver value for money for KiwiSaver members.
“We are thrilled that the report’s findings align with the way BNZ approaches KiwiSaver, focusing on low cost, high quality, and delivering value for customers.
“We use our scale to deliver a quality service at a lower cost, which we then pass on to our customers in the form of lower fees. BNZ removed member fees, the first of the big providers to do this, and reduced management fees in 2019.
“We also have a unique mix of active and passive management of our funds which we believe will deliver better long-term outcomes for our members at a lower cost.
“The FMA report specifically highlights these areas as something fund managers should be doing to make sure they are delivering better value for money,” says Forster.
The report also notes that providers should be more transparent with their fees, and that they should be reviewed regularly.
“Unlike some of our competitors, our approach avoids so-called ‘tax leakage’ where members end up paying more tax, but this is not always clear to them. We are regularly reviewing our approach to ensure we are consistently doing the right thing by our customers too,” says Forster.
“We have a laser-like focus on making sure we are continuously delivering value for money for our customers, and we are unashamed about our belief that this is the right way to run a KiwiSaver scheme.
“It’s crucial we get this right, as our work to improve returns and reduce fees can mean the world of difference to the quality and dignity of retirement our customers might enjoy,” says Forster.