Quote Originally Posted by RRR View Post
Simplicity - the new low-cost, not-for-profit Kiwisaver provider (from Sam Stubbs) - 0.3% fund management fee for all funds (growth, balanced, conservative) + $30/year.
All investments hedged to NZ dollar - hedging fee is extra but wont be much I think.

I will consider switching!
I think any provider offering international equities exposure at low cost is on the right track. The website is fresh and I hope they do well.

From their Product Disclosure Statement:

While we have a policy of hedging overseas investments 100% to the NZ dollar, on a before tax basis,
there may be fluctuations in value, and the actual percentage may vary. There may also be additional
requirements to pay for the cost of hedging if the NZD is more volatile than predicted.
This is the only thing missing however. Save yourselves money and offer clients the higher reward/higher risk option of no hedging - unhedged portfolios will outperform any of the other current Kiwisaver portfolios long term.

The annual fund charges exclude transaction costs incurred by the funds in which the Scheme invests, and any hedging costs.
You're already superior to Smartshares with your international equities/low cost offering. Now you could beat KiwiWealth/Gareth Morgan (who benchmark 50% hedged/50% unhedged of their 85% international equity exposure) by offering 0% hedged.

Even better would be a service that let the client choose level of hedging...