Fee questions for Fisher Funds KiwiSaver members

Fisher Funds is in the process of merging its KiwiSaver funds, and says a small number of its investors will end up paying higher fees.It is transferring members of its Fisher Funds KiwiSaver Scheme into its Fisher Funds KiwiSaver Plan.It said it wanted to reduce the number of schemes it offered and remove complexity.A website article about the proposal said: "Your fees will remain the same or lower."But that is not the case for every member.Fisher Funds moved Fisher Funds Two members into the equivalent Fisher Funds KiwiSaver Plan in June.The second transfer is of Fisher Funds KiwiSaver members to the Fisher Funds KiwiSaver Plan.The FMA has recently approved that transfer and it is expected to be completed by 6 October.Jody Kaye, chief product and strategy officer, said Fisher Funds Two growth fund fees had increased from 1.06 percent to 1.14 percent in June last year when private equity was added as an asset class, and the fees in the Fisher Funds KiwiSaver Plan were 1.13 percent at the date of the transfer.The other group that could be paying higher fees than they were in the past is investors in a GlidePath product."For the vast majority of clients, fees will be the same or slightly lower. The only exception is for GlidePath clients, and this is slightly complicated," Kaye said."The Fisher Funds KiwiSaver Plan GlidePath feature incorporates more funds, and it offers a more complete solution than was possible with the Fisher Funds KiwiSaver Scheme. As a result of the additional funds, the fees for Fisher Funds KiwiSaver Plan Glide Path for clients under the age of 46 will pay slightly higher fees."A 30-year-old would see their fee increase from 1.13 percent to 1.21 percent.Financial Markets Authority executive director of licensing and conduct supervision, Clare Bolingford, said it would consent to such a transfer if it was satisfied that the terms and conditions of the new scheme were no less favourable to members than those of the existing scheme, and that the transfer is otherwise reasonable."In reaching our decision, we considered a range of factors, including the overall impact on members, the reasons for the transfer, expected benefits and costs, service impacts, fee changes, and any submissions received from affected members."Fees are not considered in isolation and are assessed alongside other relevant factors, including investment strategy, asset allocation, and expected member outcomes."Members have been provided with detailed information about the transfer, including detailed disclosure of changes to GlidePath settings, asset allocation, and fees."Sign up for Money with Susan Edmunds, a weekly newsletter covering all the things that affect how we make, spend and invest money.