SHOWING FEES IN THE KIWISAVER ANNUAL STATEMENTS

Every year KiwiSaver providers are required to send all KiwiSaver members an annual statement.

There is a requirement to include fees in dollar terms in these statements and the below provides more information on how the fees work and how they are calculated.

For information in relation to prior years please refer to the section 'Where can I find fees charged by Mercer in previous years?' below.

Fees in the Mercer KiwiSaver scheme

The Scheme has two main fee types, fund charges and other charges (an administration fee per member per month refer below for details). Fund charges include the manager’s basic fee, fees for the custodian and supervisor, extraordinary costs and in-fund costs.

The fund charges vary depending on the fund you invest in, and the estimated range for the 2021 annual statement is from 0.34% for the Cash fund to 0.96% for the High Growth fund. These, combined with the administration fee, result in the total fee shown on your annual statement.

You can read more about the fees on our KiwiSaver facts page or in the product disclosure statement.

Methodology for calculating dollar fees on annual member statements

The annual fund charge estimate included in the total dollar fees in the Mercer KiwiSaver scheme annual member statements are calculated using the cents per unit methodology which is based on your daily balance.

In addition, other charges in the form of an administration fee which are charged monthly to your account are calculated separately and these combined with the annual fund charge estimate give your total fee in dollars for the year.

The fee shown in the statement is the total estimated fee paid by you during the year to 31 March. The reason it is an estimate is because some fee information is finalised after the statements need to be prepared. As the main fund charge is the manager’s basic fee which is not estimated, the estimated portion is a relatively small proportion of the total fee.

The total estimated fee is comprised as follows:

Annual Fund Charges

(Estimated)

Manager’s Basic Fee

Fee charged by Mercer for services such as investment management.

Other Expenses (Estimated)

These have been estimated and are comprised of supervisor/custodian fees, as well as costs associated with the underlying funds which can be deducted from the returns received from those managers. Performance based fees are charged by some underlying managers when good performance is achieved.

Other Charges

Administration Fee

This is a dollar based fee of $27.00 for the year ended 31 March 2021 and is charged at $2.25 per member per month. Members who are under 18 or have a balance of less than $1,000 were not charged the dollar based fee for the year.


The supervisor and custodian fees have been estimated on a combination of actual and forecasted amounts.

Estimates for external performance based fees are based on actual data for the year to 31 December 2020 or 30 September 2020 depending on the underlying fund.

The estimates will vary depending on the size of your balance. Here is an example of the estimated total fees for the Mercer Conservative Fund:

Balance

Total fee (including estimates) / $ per
member per annum*

$10,000

$78

$20,000

$129

$30,000

$180

$40,000

$231

$50,000

$282

$75,000

$410

$100,000

$537

*the total fee includes the $27.00 annual membership fee and the estimated fund charges.

Where can I find fees charged by Mercer in previous years?

You can download copies of previous annual statements on the www.mercerfinancialservices.co.nz website, once you sign in to your account.

2020 Fees Information

2019 Fees Information

2018 Fees Information

 

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