The authority has produced a tracker tool to help members compare and contrast fees and returns more easily. Just type “FMA KiwiSaver Tracker” into your search engine and you will get a wealth of information, provided yours is one of the many funds listed.
Quotes from the report include: “The tracker shows that there is no clear link between higher fees and higher returns, apart from a couple of standout funds.”
“The average investment management fee paid by members over the 2018 reporting year was $117, almost 20% more than a year ago”
“This year we ran a campaign calling on KiwiSaver members to check their annual statements.
“All KiwiSaver members were due to receive their annual statement in May and, for the first time, all KiwiSaver providers were required to tell members exactly how much they have been paying in fees in dollars.”
“We used influencers … to encourage KiwiSaver members to check our new Health Checker page in the hope they would take a few simple steps which could make a big difference in the long-term.
“Throughout the coming year, we will be conducting further work on the unreasonable fees test, as defined in the KiwiSaver Act.
“We regard active choices as important as they are a good indication that the provider’s financial literacy efforts have resulted in a member making a meaningful, informed choice in their own interest.”
Meanwhile, the Financial Markets Authority has listed a number of suspected scam schemes. If you wish to check the list, type into your search engine: FMA warnings and alerts.
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