Reporting regime highlights KiwiSaver fees

Morningstar research head Chris Douglas says the new KiwiSaver disclosure regime would allow con allow consumers to know what they are getting and what it costs.

All KiwiSaver investors should be able to find out how their fund is performing, what fees are being charged and where the money is being invested from today.

All providers must publicise the information on their website as part of a new quarterly reporting regime introduced by the Government.

The standardised reporting had been due to start in July but Commerce Minister Craig Foss delayed it to October to allow providers more time to get ready.

Previously there has been no specific reporting requirements on KiwiSaver schemes.

Chris Douglas, head of research at Morningstar, said the regime would allow consumers to know what they were getting and how much it was costing them.

"It's just like going into a shop and understanding the price includes GST, where it is made and how you should wash the item - just like any other consumer item."

But he questioned whether many people would use the information.

"I think we will get to the stage where it will be very, very valuable but I don't know if that will happen straight away."

Douglas said it was helpful for all providers to have consistent and comparable documents, but it would be better if they were available all in one place to make it easy to compare funds.

"To have one universal place to find the information would be much more efficient.

"Otherwise I expect the interest from the public would be low."

Foss said the standardised reporting would help Kiwis decide whether their scheme was best for their individual circumstances.

"As their KiwiSaver funds grow, it is important that individuals actively review their fund's long-term performance.

"Factors for them to consider include how long they have before retirement, financial commitments and savings goals."

The Financial Markets Authority has also published new information with tips for people on how to review funds.