Fees are automatically deducted from your Generate KiwiSaver Scheme account. As a member you will pay:
The funds’ assets are held indirectly via certain wholesale funds managed by us. We do not charge any additional fees in relation to those wholesale funds. However, if Generate invests (via the wholesale funds) in third party underlying funds, those funds may also charge fees.
This covers the management services we provide for the Scheme and is based on the gross asset value of the fund, which is the same no matter which fund or funds you invest in. The fee is calculated daily and paid to us each month. Currently the fee is 1% each year.
Other administration charges
This includes the fee for our Supervisor and Custodian (Public Trust) and a fee to cover operating or administration expenses (e.g. auditing, legal etc.). The supervisor fee is the same no matter which fund or funds you invest in, and it is calculated daily and paid to the supervisor each month. The supervisor may also be paid additional fees for non-routine matters, as the supervisor and the manager may agree from time to time. The maximum fee for operating and administration expenses for members in each fund will be 0.2% of the assets of the fund per annum (excluding transaction costs e.g. brokerage and buy-sell spreads). To the extent that actual expenses exceed the target, we may choose not to recover such expenses. Bank charges, currency conversion fees and, where applicable, tax will be deducted from amounts transferred from foreign superannuation schemes before they are converted into units.
Underlying fund fees
The funds’ assets are held indirectly via certain wholesale funds managed by us. We do not charge any additional fees in relation to those wholesale funds. We do not charge any additional fees in relation to the wholesale funds managed by us, and in which the assets of the funds are held. However, the Growth Fund and the Focused Growth Fund invest (via the relevant wholesale funds) into third party underlying funds.
Most of the managers of these funds will charge fees for investing the Scheme’s money, and may change the fees they charge from time to time. These fees will affect the value of these funds’ investments and will be reflected in the Growth Fund’s and the Focused Growth Fund’s unit price. The underlying funds’ fees will differ depending on the products into which we decide to invest.
There are two types of fees charged by third party underlying managers:
(i) Base fees
(ii) Performance fees
The underlying funds’ performance fees provided in the summary of regular charges reflect the total estimated charges for performance fees from the underlying funds.
We have delegated the performance of certain administration management functions for the Scheme (including registry) to MMC Limited (MMC). We and MMC are reimbursed from the Scheme’s assets for the day-to-day administration of members’ balances and for maintaining the member register for the Scheme. Currently the fee is $36 per member per year paid monthly in arrears ($3 per member per month). This is a Scheme fee and not a per fund fee, therefore you will pay the same fee no matter how many funds you are invested into.
This fee will be charged for every month the account is open. If you open a KiwiSaver account but do not contribute immediately, when you do start contributing the administration fee will be charged in arrears for every month the account has been open.
‘Stepping Stones’ and ‘Stepping Stones Growth’
If you choose either the ‘Stepping Stones’ or ‘Stepping Stones Growth’ investment option you will pay the fees applicable to the funds you are automatically invested into. There are no additional fees for being invested in either of the Stepping Stones options.
Hannah invests $10,000 in the Growth Fund. She is not charged an establishment fee or a contribution fee.
This means the starting value of her investment is $10,000. She is charged management fees, which work out to about $130 (1.30% of $10,000). These fees might be more or less if her account balance has increased or decreased over the year.
Over the next year, Hannah pays other charges of $36.
Estimated total fees for the first year
Fund charges: $130
Other charges: $36
See the latest fund update for an example of what an investor could have earned after taxes and fees if they were invested in the fund for a full year. The fund update also provides an example of the total fees charged as at the end of the scheme year (31 March).
This example applies only to the Growth Fund. If you are considering investing in other funds or investment options in the Scheme, this example may not be representative of the actual fees you may be charged.
The fees can be changed
We may agree with the Supervisor to vary the fees from time to time. Fees not currently charged, may also be introduced at any time as permitted by the trust deed. However, any changes in fees will be subject to the ‘reasonable fees’ restrictions outlined in the KiwiSaver Act.
We must publish a fund update for each fund showing the fees actually charged during the most recent year. Fund updates, including past updates, are available at generatekiwisaver.co.nz/fund-updates.
To find out more about how dollar fees are calculated in the Annual Member Statements, please click here