Simplicity KiwiSaver Scheme has announced the launch of two new funds. The company is known for offering low-cost investment options and is now expanding its portfolio with the introduction of seven new funds.
The two new KiwiSaver funds are the KiwiSaver High Growth Fund and the KiwiSaver Defensive Fund. Both funds will charge a total annual fee of 0.29% p.a., with no entry or exit fees.
In addition to the KiwiSaver funds, Simplicity is also introducing five new investment funds. The High Growth Fund, Defensive Fund, Hedged Global Share Fund, Unhedged Global Share Fund, and Hedged Global Bond Fund will all have a total annual fee of 0.29% p.a.
The three single sector funds – Hedged Global Share, Unhedged Global Share, and Hedged Global Bond – have a lower total annual fee of 0.15% p.a.
Simplicity is lowering the fee on all KiwiSaver funds from 0.30% p.a. to 0.29% p.a., making them even more affordable for investors.
National Capital CEO, Clive Fernandes, expressed his view on the new funds, stating, “This solidifies Simplicity’s offering as a full-service KiwiSaver provider, where clients can access your typical diversified KiwiSaver fund type without having to change providers.”
While the new launches are a positive move towards increasing Simplicity’s offerings, some investors have expressed concerns about Simplicity KiwiSaver’s investment in its own product, Simplicity Living. Simplicity’s allocation to unlisted property via Simplicity Living has raised concerns about potential conflicts of interest.