Our published fund returns are after all of these fees have been accounted for, except for the monthly administration fee which is deducted directly from your KiwiSaver account:
|Fund||Fixed||Estimated||Total estimated annual fund charges*
% net asset value
|Management fees||Costs and expenses||Performance-based fees1|
|Balanced Strategy (45% Conservative Fund, 55% Growth Fund)||0.91%||0.15%||Range
0% — 1.10%
0% — 2.00%
|*In addition to the annual fund charges above you'll also be charged an annual administration fee of $36|
1The annual fund charges for the Growth Fund and Balanced Strategy include a performance-based fee estimate of 0% based on the long term average performance of the market indices used to measure the performance of the Growth Fund compared against the long term performance of the hurdle rate (see the product disclosure statement for a description of the hurdle rate). The performance-based fee is capped at 2% of the average net asset value of the Growth Fund (and therefore 1.10% in the Balanced Strategy).
We believe performance fees are a good way of aligning our interests with yours to achieve great investment returns and grow your retirement savings.
Here’s how the Growth Fund performance fee works:
|Benchmark rate of return||The return* that must be achieved before a performance fee begins to apply.||The average Official Cash Rate (OCR) + 5% (at 30 September 2016 = 7.00%).|
|Fee on return above benchmark||The amount of the return above the Benchmark rate of return that is paid to Fisher Funds.||10% (members receive 90%).|
|Performance fee cap||The maximum performance fee that can be paid to Fisher Funds in any year.||2% p.a. of Average Net Asset Value of Growth Fund.|
|High Water Mark||Where the portfolio value goes up and then down over multiple periods, this ensures that no performance fee is payable if the Manager has previously been rewarded for that performance.||No reset allowed. Where the 2% cap limits the performance fee, the High Water Mark will be set at the performance level at which the cap was triggered. This means the Manager will not be rewarded for the same performance twice.|
|Fee frequency||How often the fee is paid.||Annually.|
For full details of the performance fee formula, see the Scheme's Governing Document.
* "Return" means the increase in the unit price of the Growth Fund, which is before deducting the Administration Fee and any PIE tax that may be payable by individual members.
Subject to beating the benchmark rate of return and the unit price being above the High Water Mark, we are entitled to earn a performance of 10% of excess returns. This means that at the current OCR (30 September 2016 — 2.00%) we would receive no performance fee on the first 7.00% of your return (after all other fees). But for any return achieved in excess of 7.00%, members would receive 90% and Fisher Funds would receive 10%. The table below shows how the returns achieved by Fisher Funds would be shared at the current 7.00% benchmark:
|Investment Return||Member share||Fisher Funds share|
As a reminder the High Water Mark also remains in place to ensure we are not rewarded for the same performance twice.
Disclaimer: Fisher Funds Management Limited ("Fisher Funds") is the issuer of the financial products referred to on this website. A replacement PDS for each of the financial products is available here and also on the relevant scheme's offer register entry at companiesoffice.govt.nz/disclose. The information, calculations and any opinions on this website are based upon sources believed reliable, but Fisher Funds, its officers and directors make no representations as to their accuracy or completeness. All opinions reflect our judgment on the date of communication and are subject to change without notice. Professional investment advice should be taken before making an investment. Past performance is not a reliable guide to future performance. A disclosure statement is available from your financial adviser, on request and free of charge.
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