Pie Funds joins KiwiSaver market with low fee model

Pie Funds is set to launch a low-fee, actively managed KiwiSaver scheme using Netflix and Spotify pricing models.

Tuesday, July 24th 2018, 9:06PM

The scheme, called Juno, will go live on August 1.

Documents have been lodged on the Disclose register, showing it will offer a conservative, balanced and growth fund.

The balanced fund had an investment objective of returns of 5% to 10% per year over a five-to-10-year period. The growth fund aims at 10% or more.

Directors of the scheme are Mike Taylor, founder of Pie Funds, Steven Nichols, Roy Knill, Roger Kerr, and Noah Hickey.

Juno magazine founder Jacqueline Taylor is an adviser to the board and Paul Gregory, formerly of the Financial Markets Authority, is head of investments.

Jacqueline Taylor said even Juno readers had no idea what KiwiSaver fund they were in, let alone the fees they were paying.

"Our research also told us people wanted a socially responsible KiwiSaver provider offering low fees, safeguarding and growing their money. It got me thinking, how can we make KiwiSaver more simple, secure, informative and fun?”

Mike Taylor said the fee structure was clearer, with one all-inclusive monthly fee.

“There’s no catch – it’s just maths. Most KiwiSaver schemes charge fees as a percentage of your total investment, so for every dollar your investment grows, so does the amount you pay in fees. But with us, you can see exactly what you will pay at all stages of your KiwiSaver journey.

“Most importantly, what you pay isn’t much – and parents can open a Juno KiwiSaver Scheme account for their children fee-free.”

Monthly charges are applied to the fund on a tiered basis, ranging from free for those with less than $5000 or who are aged under 18, through to $50 a month for investments between $100,000 and $1 million.

Pie Funds said responsible investment was taken into account in the investment policies and procedures of the scheme.