Standardised reporting for KiwiSaver proposed

Standardised information on KiwiSaver fees and charges, performance and returns is being proposed in a discussion paper published by the Government.

The information, in periodic reports, would also include portfolio holdings, conflicts of interest and fund manager tenure.

Submissions are being sought on the paper which said New Zealand was one of the few countries in the OECD to not prescribe ongoing disclosure requirements for returns, fees and asset allocation of collective investment schemes.

"Effective competition within investment markets depends on investors' ability to access and compare products based on reliable information," the paper, which was published today, said.

"Competition drives both better investment performance and innovation in new product development, as well as lowering fees. The information currently available on KiwiSaver schemes is insufficient for competition to work in this way."

Issues around KiwiSaver reporting were the lack of agreed standards for the terminology employed, the categorisation of costs, the methodologies behind the calculation of fees and returns, and the format in which that information was presented, the paper said.

Commerce Minister Simon Power said standardised reporting would ensure all KiwiSaver providers were on the same playing field.

"Investors also need to be able to rely on the information about fund performance without wondering if the figures have somehow been doctored."

- NZPA