Fees and Charges
Fees are an important consideration when choosing your KiwiSaver Scheme.
The fees charged by the Craigs KiwiSaver Scheme (‘the Scheme’) are individual to each member. This is due to the nature of the Scheme which enables each member to construct a portfolio specific to their investment needs. The management fee that is charged within the Scheme is tiered, and differs between asset types. Therefore fees will be unique to each member and dependant on the type of assets invested in and the total market value of that type of asset.
Explanation of Total Annual Fund Charges
The total annual fund charges shown in the Investment Options supplement comprise the following:
For example the total annual fund charge for the Milford Trans-Tasman Fund is 1.40% comprising our management fee of 0.35% and the fees charged within the Milford Trans-Tasman Fund of 1.05% The fees charged by Milford are reflected in the unit price of the Milford fund.
The Craigs KiwiSaver Scheme has a tiered management fee structure for listed securities and fixed interest securities. This means the management fees charged to your Scheme account are determined by the asset class of the securities you hold and the market value of your investment in those particular asset classes.
The total management fee will not exceed 1.25% of the market value of your total investment into the Scheme. Fees will be deducted from your cash holding, or by selling down securities within your portfolio proportionately.
The following tables summarise the management fees that apply to the Scheme.
Tiered Management Fee Structure
Flat Management Fee Structure
Other Fees and Charges
You will be charged other fees and charges, as stated in the PDS. These include administration fee, brokerage, Scheme expenses and in some cases performance fees.
*Scheme expenses are significantly impacted by the costs of transitioning to the Financial Markets Conduct Act 2013. GST will be added to any fees, if applicable, at the prevailing rate.
To demonstrate how the tiered management fee structure applies to different portfolios, we have constructed some high level sample portfolios:
- Example 1: shows the difference arising from different value portfolios. The first client has invested $50,000 while the second has invested $760,000. The fee rates for each client are different even though they have selected exactly the same securities.
- Example 2: shows the difference arising from asset class selections. The first client has a fixed interest only portfolio while the second has an equity only portfolio. The fee rates for each client are different even though they have same amount invested.
For full information on the Scheme, read the Product Disclosure Statement and for further examples refer to the Fees and Other Charges Guide. Please speak to an Investment Adviser if you have any questions regarding how we calculate our fees.