by Susan Edmunds
Under the new reporting regime, all providers must show on their website, in a standardised way, what fees are being charged and where money is invested.
Although there has been scepticism about how much attention consumers will pay to that data, other organisations are already finding ways to try to use it to raise awareness, particularly among savers in default funds.
The information will be used by the Commission for Retirement Income and Financial Literacy to launch a new online tool, KiwiSaver Fund Finder, to help savers compare funds' fees, service rating, returns and switch fees. It will be live by year's end.
Spokesman David Kneebone said he expected it to be one of many using the data.
He said too many people still could not name their KiwiSaver provider, let alone the fund they were in. "We've got to celebrate that they're there in the first place, but the ideal would be their provider working with them. It's a catch 22. I'm thrilled to see 2.2 million people in KiwiSaver but having said that, I would love to see people in the right fund. And a large percentage don't contribute enough to get the full Government contribution."
Historic returns were not the most important factor, and fees still had a significant influence, he said. "There is some complexsity to a KiwiSaver decision. We encourage people to look at fees, risk, whether they can afford KiwiSaver and whether they might want to use it as a first home deposit. What we're doing is wrapping a lot of financial education around key statistics."
Milton Jennings, CEO of Fidelity Life, which sold its KiwiSaver business to Grosvenor, said any tools that helped people understand their investments were useful. "Now balances are starting to grow, people are taking more of an interest."
He said it was important to understand that high-risk investments, such as equities, involved periods of correction as well strong growth.
The Financial Markets Authority has also published new information for people wondering how to compare funds.
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