Bank of New Zealand is the latest Kiwi Saver manager to reduce fees after having to launch a low cost fund to protect its status as a default provider.
Thursday, September 16, 2021 7:11 AM
Fund managers today announced that they will reduce fees for all Kiwi Saver and You Wealth funds to 0.45% at the end of the month.
BNZ’s growth funds previously claimed 0.63% and regular balance funds claimed 0.62%, both down 17 basis points.
However, to win the government’s bid to become the default provider, BNZ has created a second balanced fund with an even lower rate of only 0.35%. The cash fund charges only 0.3%.
The average default fund charges 0.49%, while the average growth fund charges more than 1% plus a $ 28 membership fee.
Market regulators are pressing providers to lower prices, saying they haven’t dropped enough given how much the industry has grown.
Wealth general manager Peter Forster said that by scaling up, banks can “continuously reduce costs.”
“We promise to review our pricing frequently to ensure that these benefits are communicated, but we never sacrifice product quality,” he said.
BNZ has reduced its fixed membership fees in 2019. This is what the Financial Markets Authority has instructed all Kiwi Saver providers to do effectively.
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The latest BNZ to reduce Kiwi Saver fees
Source link The latest BNZ to reduce Kiwi Saver fees