Fees

Our aim is to have the simplest fee structure in the market so that our members know exactly what they are getting charged for the services we provide.

We charge a single fee to each member each year for managing and administering their savings - there are no extra fees for entry, withdrawal or changing your investment direction.

Our fee covers all the regular ongoing costs we incur in the management and administration of the Scheme, such as:

  • Trustee services
  • Administration services
  • Investment management services
  • Registry and custody costs
  • Marketing
  • Auditing
  • Legal
  • Printing and postage

Our single fee is 1% of your member account balance per year, subject to a minimum of $50 per year.  This means that if your account balance is less than $5,000, you will be charged our minimum fee of $50 per year.  If your balance is over $5,000, you will be charged 1% of your account balance per year.

Other Costs and Expenses

Although our fee is simple, there are other costs and expenses associated with investing your money that you should know about:

  • The costs of buying or selling investments, such as brokerage, are usually included in the purchase price of the investment. In this way, they are an indirect cost to members of the Scheme.
     
  • The costs of investing in assets, such as the charges for investing in other funds, are reflected in the reported returns for those funds.  These are a cost of investing that are indirectly borne by members of the scheme.
  • If the Trustee of the Scheme incurs costs or expenses in relation to the Scheme that are not covered by our fee, they are entitled to recover those costs from the Scheme.  To date, the Trustee hasn’t charged the Scheme for any costs or expenses (other than third party investment related costs), and they need to consult with us before any such cost or expense is incurred.  Because the Trustee has obligations at law and under the Scheme’s Trust Deed that may require them to incur these costs or expenses, there is no limit on the amount they may incur and recover in carrying out those obligations.

For the Record

  • Our single fee is calculated and deducted from your account on a monthly basis, based on the total value of your account balance at the end of each month.
     
  • The scheme documents have provision for our fee to be increased to a maximum of 2%, but only if the increase is agreed between the Trustee and the Manager as necessary to cover additional costs.
     
  • The minimum fee of $50 may be indexed to the Statistics New Zealand Consumers' Price Index at the end of every third Scheme year and therefore may increase from 1 July 2012.