https://www.kiwiwealth.co.nz/product...key-documents/
I click "Kiwiwealth Managed Funds - Other Material Information", I get sent to a pdf. That is a relatively new document issued in December 2022
Page 20 of that document contains the following information on fees
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Limits on fees and expenses
Under the Trust Deed the maximum fees that we can charge out of each Fund are:
Contribution fee 5% (plus any GST) of the consideration for meeting the issue price of units.
Annual Fees 2% (plus any GST) per annum of the net asset value of the Fund.
Performance fee To be set at the time any performance fee is introduced.
Withdrawal fee 5% (plus any GST) of the amount withdrawn.
Supervisor fee 0.075% (plus any GST) per annum of the net asset value of the Fund.
There are no limits on the Buy/Sell spreads that we can charge. Subject to the above limitations and the limitation set out under ‘Additional costs, charges, and expenses’ above, there is no limit to the amount of remuneration that we can be paid or on the amount of expenses we can recover
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While I note that these are 'maximum fees', they do seem high by industry standards. Annual management fees for the funds look to be:
(2% + 0.075%) x 1.15 (GST) = 3.1625%, with performance fees to be added to that.
I believe that this fee update is a direct result of Kiwiwealth being acquired by Fisher Funds. By way of comparison, the total Kiwiwealth Growth Fund annual fee for YE30-06-2022 (before the Fisher Funds takeover) was a mere 0.96%!
It does seem there is now a clear intent to introduce performance fees on top of management fees, something that was in the past a clear point of difference between Kiwiwealth and most other fund managers. Buy/Sell spreads are in effect another layer of fees on top of the standard contribution fees. Suddenly Kiwiwealth is looking very expensive indeed to be getting in and out of!
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