Seven week-old KiwiSaver scheme JUNO has attracted a hoard of young investors, with one third of its current scheme members being children under 18.
The product is currently the only scheme to offer fee-free investment to those under 18 years of age, with no administration or management fees to be paid.
Founders Mike and Jacqueline Taylor say they are “passionate” about extending KiwiSaver opportunities to New Zealand children, and that making the scheme 100% fee-free would be the best way to do so. According to Mike, the number of sign-ups from children under 18 has by far exceeded their expectations.
“Right now, we have 215 younger members signed up,” Mike said. “The average balance of those accounts is $723. Compared to the average management fee for KiwiSaver growth funds and the average administration fee for all KiwiSaver funds, we’ll save those 215 kids just over $40 each in fees – over $8800 in total – in their first year of investing.
“We can’t wait to save them even more as their balances increase,” he added.
The JUNO KiwiSaver scheme is also fee-free for all balances under $5,000, which means adults who haven’t been able to invest in KiwiSaver for whatever reason will also have access to the zero-fee structure until their balance grows beyond $5,000.
The scheme is a collaboration between JUNO Investing Magazine and Pie Funds Management, and has attracted approximately 100 new members each week.
“Our scheme is clear, easy to understand, and there are no surprises,” said Jacqueline. “We’re committed to transparency, to plain English, and to helping our members really engage with and grow to love their KiwiSaver, starting with our Kiwi Kids.
“We are proud to lead the way and show all New Zealanders what can be achieved when they’re not losing chunks of their KiwiSaver balance in fees.”