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Your KiwiSaver Annual Statement

A guide to your statement and answers to frequently asked questions

Investing newsroom
Fisher Funds ,

Fisher Funds
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10 May, 2022

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If you’re a Fisher Funds KiwiSaver Scheme client, you’ll be receiving your annual statement in May. These documents are important for checking the general health of your KiwiSaver account, but it's not always straightforward to figure out what all of the numbers and figures actually mean.

We're here to help you easily scan your KiwiSaver annual statement and fully understand what's going on with your account.

Frequently Asked Questions

Below you'll find answers to some of the most asked questions about KiwiSaver Annual Statements.

My Balance

Your KiwiSaver Annual Statement contains your balance for the year ending 31 March 2022. For an up-to-date balance, log in to Fisher Funds Online.

Retirement Projections

If you have held your Fisher Funds KiwiSaver account for more than one year and are between the ages of 18 and 64 years, you will receive a retirement projection. The Financial Markets Authority (FMA) have set the criteria for how these are calculated. For more information on the assumptions used to calculate your retirement protection please visit the website of the FMA.

Q. My retirement projection is too low - what should I do?

A. Visit our retirement projector to enter your individual details and see the difference that changing your contribution rate or your investment strategy could make.

Fees

Q. Why have I paid Management fees when my investment has low or negative investment earnings?

A. Management fees are calculated as a percentage of your balance, not the performance of your fund. These fees provide you with:

  • One of the largest teams of investment experts in New Zealand, who are constantly seeking to beat the market through our proprietary Smart Active Investment Management approach.
  • Our New Zealand based team of KiwiSaver specialists and Advisers.
  • Industry leading communications and tools.

The value for money associated with the fees charged in our schemes has been recognised by Super Ratings, with both the Fisher Funds KiwiSaver and Fisher Funds TWO KiwiSaver Schemes being awarded platinum ratings for "Value for Money".

Q. Why have I paid a performance fee when my investment earnings were low or negative?

A. In most cases, this is related to a difference in time periods between the annual statement year, and the performance fee year. Annual statements are for 1 April - 31 March for any given year.

Our performance fees are calculated from 1 July - 30 June and are paid from the fund in early July. If you have been charged a performance fee, most of it relates to your investment performance from 1 April - 30 June when the fund outperformed its target. The fund may have had low or negative performance for the rest of the year, however the payment made as of 30 June 2021 is reflected in your statement.

 

PIE Tax

KiwiSaver is classified as a Portfolio Investment Entity (PIE). This means that we calculate and pay the tax on your investment for you.

Q. Why have I paid PIE tax on my KiwiSaver account when my investment earnings were low or negative.

A. PIE investments can generate taxable income regardless of whether the overall fund performance is positive or negative. This is because different types of assets are subject to different tax rules under the PIE regime.

Local and Australian Shares

The NZ and Australian shares your KiwiSaver Account is invested in may have earned dividends throughout the year and those dividends are treated as taxable income. Capital gains on NZ and Australian shares are not taxed, therefore any capital losses cannot offset any tax to pay on the dividend income. So even if the value of your fund has dropped due to the value of the shares falling, you may still have tax to pay on the dividends earned.

International Shares

International shares are taxed on the Fair Dividend methodology.  Regardless of the actual dividends paid or the capital gain or loss on the shares during the year, your taxable income is assumed to be 5% of your balance every year, so there is always tax to pay.  This is not such good news when the shares have returned less than 5% or lost value, however it is good news if the shares have made more than 5% in the year, which is usually the case over the long term.

Cash and fixed Interest, direct property

Cash and fixed interest, and the direct property the fund holds is taxed more like a bank deposit.  Your taxable income on these assets is based on the change in value of the investments over the year.

Therefore, in a diversified fund like the Growth Fund, as a very simplified example, the value of the shares that the fund holds could have dropped by 5%, however, the dividends paid on those shares and the return on the other assets of the fund may have only gone up by 4%.  Therefore, the fund overall has made a loss of 1%, however there is still tax to pay on the 4% gain from the dividends and other assets.  It is worth noting that when there is a capital gain on the shares in your fund there is no tax to pay on that gain, so the PIE regime can work in your favour.

We like to use the analogy of a rental property to help explain this.  While the value of the property may have gone down over the year, you still have to pay tax on the rental income it has generated.



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