KiwiSaver economy - scales, fees and margins

KiwiSaver fees in aggregate have fallen dramatically on a relative basis over the last five years or so. (Image: Getty)

Wed, 20 Nov 2024

According to at least one BusinessDesk subscriber, KiwiSaver providers “have enjoyed massive economies of scale and hence huge increases in profitability”.“Unfortunately, investors have received very little of these benefits, with fees in New Zealand still being amongst the highest in the world. “An article calling fund managers to account on this basis would be greatly appreciated!”Well, here goes.Cost basis Firstly, even as per the latest Morningstar gauge of almost $120 billion under management, the en...

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