Our KiwiSaver Fees Structure and Charges

What are the fees?

You will be charged fees for investing in the Scheme. Fees are deducted from your investment and will reduce your returns. If Generate invests in other funds, those funds may also charge fees. The fees you pay will be charged in two ways: 

– regular charges (for example, annual fund charges). Small differences in these fees can have a big impact on your investment over the long term; 

– one-off fees (currently none).

How our fees are calculated:

Base fund management fee

We perform management services for the Scheme. The fee for these services is based on the net asset value of the fund and varies across the funds as set out in the table above. The fee is calculated daily and paid to us each month. It reduces each fund’s unit price.

Administration and other charges included in the Base fund management fee:

(i) Supervisor fees 

The supervisor charges a fee for its supervisor and custodial services as agreed between the Manager and the Supervisor. The fee is the same no matter which fund or funds you invest in. The supervisor’s fee 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. Such fees reduce each fund’s unit price. 

(ii) Operating and administration expenses 

Operating and administration expenses (such as auditing and legal expenses, postage, and other expenses) will be incurred to operate the Scheme. 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.


Third-party 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. 

However, the Funds (except the Defensive, Moderate and Conservative 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 relevant 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

The underlying funds’ base fees provided in the summary of regular charges reflect the total estimated charges for the management fees from the underlying funds

(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.

Administration fee

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.

Advice charge

If you join the Scheme, we will pay commission or salary (but not both) to our Nominated Representatives, or commission to third party advisers (where you have used one), for introducing you to us and for any advice provided to you. The amount we pay to our Nominated Representatives is set out in the FAP Disclosure Statement. We pay these costs from the revenue we receive from the fees you pay to us.

Stepping Stones and Stepping Stones Growth investment options

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.

Fees are exclusive of GST where applicable.

We can charge other fees on an individual basis for investor-specific decisions or actions, such as entry or exit fees. However, no such fees are currently charged.

Example of how fees apply to an investor

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