Even with the Simplicity fund, which has a modest base fee of $30 per year plus 0.31% annual management fee, there is an additional annual insurance fee of 1.3%. With the exception of the NZ Bond fund, all the investment funds follow the New Zealand, Australian and/or overseas sharemarkets. When you invest in any KiwiSaver or Managed Investment Scheme, the manager does not get any of the money (apart from any fees it charges you). This keeps costs low for Kiwi investors. The Simplicity Investor Funds are mostly unknown by household investors, but their awareness is growing. All three low cost KiwSaver providers, as well as Milford, our benchmark provider, offer Conservative, Balanced, and Growthfunds, which we’ll be comparing throughout this article. What's important is not to look at the day to day, but the year-on-year return. Analyze the Fund Fidelity Simplicity RMD 2020 Fund SM having Symbol FIRWX for type mutual-funds and perform research on other mutual funds. This allows the savings to be passed on to investors, hence the low 0.31% annual fee. Learn more about mutual funds at fidelity.com. The funds accept automatic payments and there are no fees for making withdrawals. Simplicity manages the Scheme for you, and Public Trust makes sure they are managing the Scheme’s investments in line with the rules and regulations set out in the Scheme’s documents. When you invest in any Managed Investment Scheme, the manager does not get any of the money (apart from any fees it charges you). As a proportion of the fund being invested in such companies, Simplicity ", Morningstar KiwiSaver quarterly survey to 30th September 2019, The Specs of Simplicity (including Mortgage Rates/Home Loans), The Competition - Simplicity vs SuperLife vs others, How Safe is My Money with Simplicity KiwiSaver?​, Worried about not having enough money when you retire? We've not seen anything like it, with 0.31% of funds invested + a $20 annual fee outpacing any other provider. So while Simplicity isn't the only index fund provider, it does at the moment offer the lowest fees. Simplicity is not a Government guaranteed investment; therefore, it is no different from other investments, including bank deposits. Simplicity is a fund manager who offer three “Diversified” funds. Simplicity charges a very low administration fee of $20 per year, irrespective of how much you have invested. With over 3,000 investments in 23 countries, Simplicity funds are fully diversified and 15% of fees go toward supporting New Zealand charities through the Simplicity … “Fees for KiwiSaver funds … As of 2020, around $700,000 had been donated in total. What I like about these funds is that if the allocation is too conservative or … ​We cannot accept liability for any decision made based on our information. All investment is index-based; there are no fund managers and investment analysts to pay. Simplicity manages the Scheme for you, and Public Trust makes sure they are managing the Scheme’s investments in line with the rules and regulations set out in the Scheme’s documents. The Scheme’s investments would be transferred to another manager. But in 2018 the scheme doubled in size, in both members and funds under management. This allows the savings to be passed on to investors, hence the low 0.31% and 0.10% annual fees. There were instances of this in 2008, although that generally related to structured products of some kind, and Simplicity does not hold that type of investment. The information on this website does not constitute financial advice in any form. The index fund benefits from low operating expenses and management fees due to the fact that the fund must invest in the companies within the index and therefore doesn't need fund managers to make judgments or research in order to make the investments. Our values statement is simple: MoneyHub exists to give every New Zealander the information they need to make better financial decisions. Simplicity does none of this, instead it simply invests in the specified index and value is created by the movement in the overall sharemarket. The specs include: There are two fund managers involved. There were instances of this in 2008, although that generally related to structured products of some kind, and Simplicity does not hold that type of investment. The investments are owned by Public Trust on behalf of the funds, not by Simplicity or Vanguard. As at the end of last year, the Simplicity investment … Some how that got lost in these discussions. ... a robo-advisor review and information website. If you’re looking for funds investing in specific industries, such as oil and gas, agriculture or mining, Simplicity is not for you. ​, We think Simplicity is an excellent choice for KiwiSaver participants looking to invest in a low-risk, index fund with low fees. JUNO’s best feature is zero fees for balances under $5,000 Simplicity offers five investment funds which operate in two groups. There are no entry or exit fees, and if you top up or withdraw any amount, there is no administration fee. This fund invests largely in fixed-income (78%) and cash (2%), leaving exposure to the sharemarket of 20% of funds invested, with most of the risk in overseas shares. In rare instances, a provider will change a price or product before we've had a chance to update our information; double check prices first before making any decision. ​. This, again, keeps costs low for Simplicity Investment Fund investors. November 2016: $8.5m, 277 KiwiSaver members, March 2017: $91m, 3,531 KiwiSaver members, December 2017: $318m 10,258 KiwiSaver members, May 2017: $414m, 13,854 KiwiSaver members, January 2019: $623m, 20,049 KiwiSaver members, July 2019: $950m, 27,098 KiwiSaver members, January 2020: $1.5b, 35,546 KiwiSaver members. Any parent saving for their child. See Fidelity Simplicity RMD 2020 Fund (FIRWX) mutual fund ratings from all the top fund analysts in one place. We define 'big' as the total funds under management. New Zealand markets may not be volatile, but that's not the story overseas. These funds contain a mix of asset classes like bonds and shares: Growth Fund – contains mostly shares, higher risk, and … Sign up in minutes. A market downturn will not impact your ability to withdraw funds from your account. The Guaranteed Income Fund is unique to KiwiSaver funds, and offers a guaranteed income for life for those approaching 65 with a lower fee than other annuity schemes. Because of this, the day-to-day is not important, but rather the year-on-year return. The fund has returned 5.37 percent over the past year, 4.46 percent over the past three years, 4.97 percent over the past five years, and 5.71 percent over the past decade. In such cases, Simplicity pledges to return the excess to every investor. Companies included in the fund include: The Simplicity team manage the New Zealand assets and are responsible for charging the lowest fee that's economically viable. If for any reason Simplicity was to run into difficulties, your investments would not be affected. According to. Boasting to have the fastest growing KiwiSaver scheme in New Zealand, Simplicity is a not-for-profit company that operates 100% online, so you don’t need to worry about unnecessary costs and commissions. The whole point of going with … New providers entered the market and charged 1-2-3%, depending on what they offered. Outside KiwiSaver, many index funds exist, so if you already have exposure to index funds through personal investments then you might want to look for another KiwiSaver option. Your funds are invested in liquid securities that can be realised at 2 days’ notice if necessary. Simplicity founder Sam Stubbs said the new funds would have the same low fee, passively managed features as its KiwiSaver funds. The manager of offshore investments is Vanguard Asset Management Limited (Vanguard), the world’s second-largest fund manager. If a Simplicity fund went ‘bad’, then you could see similar negative results in other funds given Simplicity heavily diversifies its investment in New Zealand and around the world. With investments funneled into New Zealand, Australian and international bank deposits, bonds and shares, Simplicity brings a number of passive funds to Kiwis looking for a steady return in the long term without active management. 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