Understanding performance and fees

When you invest in the OneAnswer KiwiSaver Scheme, OneAnswer Multi-Asset-Class-Funds or OneAnswer Single-Asset-Class Funds, you expect value for money from the fees you pay. At ANZ Investments, we aim to deliver outstanding value in both the service you receive and the performance of your investment. In this article, we’ll look at what you get for the fees you pay and why performance matters.

The OneAnswer KiwiSaver Scheme, OneAnswer Multi-Asset-Class Funds and OneAnswer Single-Asset-Class Funds have an annual fund charge, which is a percentage of the net asset value of each fund. This pays for all the work and expenses involved in managing the fund your money is invested in.

When you’re comparing KiwiSaver schemes or investment funds, it’s important to make sure you’re comparing apples with apples.

For example, the fees for funds with an ‘active’ management approach tend to be higher than those for a fund with a ‘passive’ management approach. Rather than simply tracking an index, an ‘active’ approach aims to select high quality investments that it believes will perform strongly over the long run. That involves more management and investment expertise, but it also offers the potential for higher returns over the long term.

That’s why fees are not the only consideration when choosing a fund to invest in. What’s really important is the overall return after fees. In other words, it’s what you get for your fees that counts.

When comparing different funds, make sure you look at long-term performance after fees have been deducted. At ANZ Investments, we believe our track record speaks for itself. We’ve consistently delivered strong returns over the long term – and we think that’s pretty good value for money.