About KiwiSaver providers and schemes
There are a wide range of investment options available to KiwiSaver members. Before signing up, you'll receive an investment statement that outlines everything you need to know about a scheme, including its fees.
You can choose from a wide range of schemes offered by a variety of organisations - from the big name banks, insurance companies and investment managers, through to specialist or boutique managers.
Once you've joined KiwiSaver, your primary relationship will be with your KiwiSaver provider.
Here is a list of KiwiSaver scheme providers.
What types of investment funds are available?
KiwiSaver schemes may offer several types of investment funds that range from conservative risk to higher-risk growth funds.
The return you get and the fees you're charged can vary.
| Fund type | What does this fund generally invest in? |
|---|---|
| Cash (low risk) | Bank deposits and other fixed interest investments |
| Conservative (low to medium risk) | A high proportion in bank deposits and fixed interest investments, and a lower proportion in growth assets such as shares and property |
| Balanced (medium risk) | A more equal split between higher risk growth assets such as shares and property, and more stable investments including fixed interest and bank deposits |
| Growth (medium to high risk) | A high proportion of shares and property with a lower level of bank deposits and fixed interest |
| Aggressive (high risk) | Mainly shares |
Many KiwiSaver schemes offer a range of investment funds with the option for you to invest in one or more of the funds. Some also allow you to set your own investment strategy.
The Sorted website provides more information on the various investment funds and their risk profiles.
KiwiSaver scheme investment statements
A KiwiSaver scheme's investment statement:
- sets out the specific rules, fees, terms and conditions of the scheme
- tells you:
- how your money will be invested
- who is reponsible for managing your money
- what returns you can expect, and
- their approach to responsible investing (this includes their environmental and social considerations).
It is important that you read the investment statement before signing up to join a KiwiSaver scheme. in fact, in signing the application to join a scheme you will be asked to confirm that you have read the investment statement and understand the scheme's rules, terms and conditions, and the fees.
You might also benefit from independent financial advice.
Where do you get your investment statement?
| If your scheme is ... | you get your investment statement from ... |
|---|---|
| your employer's chosen scheme | your employer. |
| a default scheme | Inland Revenue. |
| one you applied to directly | your KiwiSaver provider. |
KiwiSaver scheme fees
All KiwiSaver providers will charge you fees for investment, management and administration costs. Your investment statement will set out the fees they charge.
Who decides the fees?
| If your scheme is ... | then the fees are ... |
|---|---|
| a default scheme | negotiated by the Government, and prescribed for each scheme. |
|
set by the scheme - although the KiwiSaver Act prevents the charging of 'unreasonable fees'. |
The role of the Government Actuary
The Government Actuary, who regulates KiwiSaver schemes, is responsible for:
- determining what constitutes 'unreasonable fees'
- the ongoing monitoring of fees.
