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New funds, lower costs and more homes for Kiwis

Published on 01/05/2023

Funds fees allocations v2

Today we announced a major expansion, launching seven new funds, reducing fund charges and increasing investment in New Zealand unlisted assets.

Seven new funds


We're expanding our range of KiwiSaver and Investment Funds, including KiwiSaver High Growth and Defensive Funds and matching Investment Funds. 

Go to the fund pages to find out more:

KiwiSaver High Growth Fund
KiwiSaver Defensive Fund
High Growth Investment Fund
Defensive Investment Fund

All of these funds have a low 0.29% p.a. total fee.

We're also launching three new global share and bond investment funds:

Hedged Global Share Fund
Unhedged Global Share Fund 
Hedged Global Bond Fund

All three funds charge a very low 0.15% total annual fee, with no entry or exit fees.

As international investments will be held in New Zealand-based PIE funds set up by Simplicity, the funds can now access New Zealand withholding tax treaty rates for overseas investment income.

The new funds are designed to increase diversified and offshore single-sector investment options for members, all with low fees.

All new funds are available from today.
 

Lower costs


The recent switch for the management of international investments from Vanguard to DWS International GmbH (DWS) has reduced our management and administration costs for existing diversified funds, and these savings will be passed directly on to members.

The total annual fund charge for all existing diversified KiwiSaver and Investment funds dropped by approximately 3.3%, from 0.30% to 0.29% p.a. from 28 April 2023.

This is the sixth time in five years that fees and charges have been reduced.

“As a nonprofit, we pass on the benefits of scale to members, not to shareholders or management bonuses,” said Mr Stubbs.

Simplicity remained highly critical of KiwiSaver industry management fees, which can be up to three times what Simplicity charges.

“The industry is on target to make $700 million from KiwiSaver fees this year. We estimate that over half of that is excess profits, taken from the savings of ordinary Kiwis,” he said.

Increased investment in unlisted New Zealand assets


We've increased our asset allocations to unlisted New Zealand investments across all existing diversified KiwiSaver and Investment Funds.

Build-to-rent housing, first-home lending and private equity all have increased asset allocations, bringing the total target asset allocation to unlisted assets from 7.5% to approximately 10% of funds under management.

"We are big believers in New Zealand," said Sam Stubbs, Managing Director of Simplicity.

“So we’re increasing investment in areas intended to enhance returns for our investors over the long term, support local innovation and help get more families into warm, dry and affordable homes,” Mr Stubbs said.

“This is what many pension funds do overseas, so we’re doing it here,” he said.


You can find more details here: KiwiSaver | Investment Funds