The approximate total sum of fees charged to a member of the Kiwi Wealth KiwiSaver Scheme for the year ending 31 March, is calculated using the following formula.
a = b + c + d - e
- a is the approximate total sum of the fees charged to the member for the year ending 31 March
- b is the total annual fund charge amount for the year ending 31 March (see below for further information on the total annual fund charge amount)
- c is the member’s individual action fees* for the year ending 31 March (currently, we do not charge individual action fees)
- d is the member’s other charges for the year ending 31 March (currently, no other charges are charged)
- e is any credits or discounts provided to the member in respect of the fees for the year ending 31 March.
*Individual action fees means fees charged to an investor on an individual basis for investor specific decisions or actions.
Total annual fund charge amount
The total annual fund charge amount is the total of the amounts calculated using the following formula for each fund in the Kiwi Wealth KiwiSaver Scheme for which the member is a scheme participant during the year ending 31 March.
f x (g ÷ h)
where, for the year ending 31 March:
- f, in relation to a fund, is the member’s average balance, being the average calculated from the member’s weekly balance
- g is fund charges
- h is the average net asset value.
The fund charges (g) in the calculation above include an annual management fee component, which is the standard annual management fee shown in the Kiwi Wealth KiwiSaver Scheme Product Disclosure Statement. However, a minimum annual management fee of $40 per year applies.
Please refer to the Product Disclosure Statement on our KiwiSaver key documents page for further information.
Estimates used in calculating approximate total sum of fees charged to members
Where a fund in the Scheme has an exposure to an underlying fund, we may use estimates of the fees (including performance fees) and expenses that have been charged by those underlying funds.
Underlying fund fees have been estimated using end of month holdings, added over a 12 month period ending 31 March, multiplied by the total expense ratio (TER) of the underlying fund. The TER is based on the underlying funds’ disclosure documents. We have assumed that the TER disclosed applied for the entire 12 month period to 31 March.
No estimates have been used to calculate the approximate total sum of fees charged to members in respect of the Kiwi Wealth KiwiSaver Scheme Cash Fund and the Kiwi Wealth KiwiSaver Scheme CashPlus Fund, as neither of these funds currently has exposure to any underlying funds.