NZ: Subscription-fee based Kiwisaver scheme launches

Investment management firm, Pie Funds has launched a low-cost KiwiSaver scheme called Juno which is based on a similar monthly fee, a subscription-based structure as entertainment platforms such as Netflix and Spotify.

The KiwiSaver scheme is a New Zealand voluntary long-term savings scheme designed for retirement savings or home deposits. The Juno scheme adopts a unique subscription fee model rather than fees being calculated as a percentage of total investment.

The monthly subscription fee is based on age and balance; with those under the age of 18 or with a balance of less than $5000 paying no fees, while balances over $5000 will incur monthly fees of $15 to $60 depending on their existing balance.

The Juno scheme is actively managed by Pie Funds who focus the investment on top, well-known brands that consumers are aware of as well as making a concerted effort to invest ethically in companies that do not damage the environment or society.

Pie Funds co-founder Mike Taylor believes that "the combination of low fees, active management and genuine member engagement is innovative and will disrupt the established industry. Taylor cites Juno’s immediate goal as taking market share away from the major banks, who currently control approximately the vast majority of the KiwiSaver market." 

This is supported by RFi Group data from April 2018 which indicates that 7 in 10 borrowers who hold Kiwisaver hold it with their main bank.

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