Comparison website MoneyHub has welcomed new KiwiSaver scheme offering “market-beating returns with fixed monthly fees.”
On August 01, boutique fund manager Pie Funds launched JUNO KiwiSaver Scheme, which offers zero fees for children and for balances under $5000 and low fees for everyone else. It offers three funds with fixed monthly fees: the fixed-interest leaning Conservative fund and Balanced fund, to the more equity-focused Growth fund.
Despite the fee initiative, MoneyHub highlighted that many potential fund switchers will be watching the performance of its three funds before making a move.
According to MoneyHub senior researcher Christopher Walsh, Juno KiwiSaver funds being actively managed and run by Pie Funds' investment managers, not by JUNO KiwiSaver itself, has more risk but also has the potential for greater returns.
“JUNO KiwiSaver and its fixed fee structure ultimately creates a fee-sweet-spot for newbie employees with low balances, as well as those with significantly sized balances wanting low fees,” Walsh said. “Those with medium sized balances may find lower fees elsewhere.”
“The investment managers of each JUNO KiwiSaver fund will be actively looking to investment in a small number of companies they believe the market has mispriced relative to the companies’ outlook, taking a position that the share price will rise.”
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