tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Monday, October 14th, 9:18AM

Investments

rss
Investment News

New Simplicity Investment Funds could save Kiwis $1/2 billion annually in fees

Non-profit investment manager Simplicity continues its assault on high fees in the managed funds sector

Tuesday, April 4th 2017, 6:00AM

by Sponsored Content

This week, Simplicity Investment Funds opened three passively managed funds Conservative, Balanced and Growth to investors. It will charge a $30 a year plus a 0.31% investment management fee, exactly the same fee it charges for its KiwiSaver funds. These fees are 50-75% lower than the market, depending on the amount invested. For someone investing $50,000 a year in a growth type fund, the savings could be more than $7,000 over 10 years, says managing director Sam Stubbs.

“It’s about time Kiwi investors had access to diversified funds that charged only what it costs, no more,” he said.

“Fees for KiwiSaver funds are way too high, and managed funds are even worse. Some are just outrageous, reflecting old ways of managing money and sales tactics which belong in the last century,” said Stubbs.

Simplicity Investment Funds exactly mirror the investments of its KiwiSaver funds. Each will have over 5,000 investments in 23 countries, and be fully hedged to the New Zealand dollar. Overseas investments will be managed by Vanguard, the world’s second largest asset manager.  Investors will be able to withdraw their money at any time.

`The managed fund sector in New Zealand is estimated to be worth $40 billion a year. If Simplicity’s savings were applied, investors could save close to half a billion a year in fees, says Stubbs.

As with it’s KiwiSaver, all funds exclude investments in nuclear weapons, cluster bombs, mines and tobacco.

“As a non-profit, 100% online manager, we are here to provide easily understood, diversified funds to ordinary Kiwis, so they can increase their wealth’. It’s as simple as that,” said Stubbs.

The launch of these funds has been brought forward by 12 months due to demand.

 

Simplicity Investment Funds Quick Facts

  • Simplicity fees are 50-75% cheaper than the average diversified investment fund currently in the market.
  • Multi-sector Conservative Fund fees range from 0.97% to 2.38% p.a. (Simplicity Fees: 0.31% + $30 p.a.)
  • Multi-sector Balanced Fund fees range from 1.16% to 2.75% (Simplicity Fees: 0.31% + $30 p.a.)
  • Multi-sector Growth Fund fees range from 1.25% to 2.93% (Simplicity Fees: 0.31% + $30 p.a.)
  • The average fee saving for a $10,000 investment in the growth fund is $117 p.a. After 5 years this saving grows to $585, and after 10 years is $1,170
  • The savings for a $50,000 investment in the growth fund are $705, $3,525 and $7,050 respectively.
  • There are no performance fees.
  • 15% of the management fee earned goes to Charity
  • All funds have more than 5,000 investments in 23 countries and are 100% hedged to the NZ dollar.
  • Offshore investments managed by Vanguard, the world’s second largest asset manager.
  • Government owned Public Trust is the custodian and supervisor.

Sponsored content is a new offer from Good Returns designed to help readers learn more about products and services which are available to them.

Tags: Simplicity

« Responsible Investing Part Two: implications for everyone in financial marketsInvestors' learned behaviour in need of revision? »

Special Offers

Commenting is closed

 

print

Printable version  

print

Email to a friend

Good Returns Investment Centre is brought to you by:

Subscribe Now

Keep up to date with the latest investment news
Subscribe to our newsletter today

Edison Investment Research
  • Ocean Wilsons Holdings
    11 October 2024
    Confirmation of interest in Wilson Sons holding
    Ocean Wilsons Holdings’ (OCN’s) H124 results showed good growth, reflecting a strong performance from Wilson Sons and a positive performance...
  • Baillie Gifford US Growth Trust
    10 October 2024
    Seeking tomorrow’s mega caps
    The managers of Baillie Gifford US Growth Trust (USA), Gary Robinson and Kirsty Gibson, invest in exceptional US businesses with the potential to grow...
  • UIL
    9 October 2024
    Announcement of 2028 privatisation plans
    On 8 October 2024, UIL Limited (UIL) announced plans to take the company private after the redemption of the 2028 zero dividend preference (ZDP) shares...
© 2024 Edison Investment Research.

View more research papers »

Today's Best Bank Rates
Rabobank 5.25  
Based on a $50,000 deposit
More Rates »
About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com